I don't typically carry a lot of cash these days. There are fewer and fewer situations which require it. You can even pay for a Happy Meal with a debit card now. One situation in need of a creative solution is splitting the bill at a restaurant when all parties have only plastic.
For the simplest cases, like with two couples, it's easy. The server takes two cards and splits the bill down the middle. It gets hairy in the case of after-work drinks and munchies. People come and go randomly, often leaving too much or too little cash on their way out. At the end of the evening, there's a collection of hangers-on, some coupled and some not. One may have had a Coke while another may have guzzled pitchers of beer and ripped through plates of nachos. Normally, I'm a 'split everything evenly' kind of guy, but this only applies to dinners. For informal gatherings, it's unfair to expect the guy who only had a Coke to cover the nacho-shoveler's voracious appetite. Plus, there's that pile of cash that's been left in the middle of the table. How does one split the bill properly if those remaining only have plastic? It's not really fair to ask the server to process five different cards, each with a different amount.
Sometimes you get lucky and enough people have cash such that the whole mess can be put on one or two cards and the cash divided between those making the charges. The problem with this is that the people using the plastic, in reality, wind up footing the bill. They've now got wallets full of tens and twenties that won't likely be used to offset the charge when the credit card bill comes due.
We need a simple and secure mechanism to allow people to exchange cash, preferably bank account to bank account. It needs to be easy to use, foolproof (remember, beer has been consumed) and universally accessible. Ideally it'd be accessible from a modern cell phone. Two such solutions have emerged, and both pretty much do the same thing: TextPayMe and PayPal Mobile. The problem is one of usability. Both require a callback, followed by a PIN to make the transfer official. Perhaps this is required to ensure the authenticity of the request, but surely someone can come up with a one-step method. I just can't imagine using a callback system in a noisy bar. Plus, PayPal has a fairly evil reputation because of the way they freeze funds for disputed transactions without divulging the criterion which flags a transaction as such and for not having an efficient appeals mechanism.
I anxiously await a workable solution to this vexing, everyday problem.