You might remember Ithaca Hours. Well, now there are Ithaca Dollars. A new alternative text to pay currency is beginning to garner popularity among business owners and customers in the city of Ithaca. Philip O'Driscoll explains how it works.
ITHACA, N.Y. -- Signs for Ithaca Dollars are begininng to pop up at several businesses around Downtown Ithaca as an accepted payment method.
Ithaca Hours, a barter type system preceded Ithaca Dollars and collapsed in 2010. CEO Scott Morris said while not a new idea, moving money through mobile devices has benefits for the end users.
"We really focus on simplicity and ease of use so the 1 to 1 relationship with the U.S. dollar means no head math at the point of sale, no fractions to deal with," Morris said.
With the five-year drought of an alternative currency coming to a close, the sustainability of Ithaca Hours waned due to its founder, Paul Glover moving away. Gary Ferguson of the Downtown Ithaca Alliance said the change from hours to an actual U.S. dollar value is part of the growing appeal.
"That makes it more of a currency that might have real tangible value," Ferguson said.
Morris is working to make Ithaca Dollars self-sustaining so it does not wane when he leaves to set-up similar local currencies elsewhere.
"So we have a business model that can pay for outreach staff and other technical support staff that really make this thing work," Morris said.
About 30 local business accept Ithaca Dollars thus far, but they officially launch August 20. Business owners said they have seen success so far. Center Cafe owner Terry Little is one of the first food vendors to try it.
"It was a small investment on my part. I've already seen more than a return on that money as far as customers coming and using Ithaca cash," Little said.
While famous for restaurants, other Ithaca businesses, like Pack and Ship on the Commons have enjoyed the efficiency so far.
"I think we see less and less people carrying cash. To be able to just do the transaction electronically over the phone like that just makes it easier on everybody," said Scott Rougeau, the store's manager.
At Sunny Days Marketplace owner Todd Kurzweil said the system can easily spread if business vendors, employees and landlords begin accepting payment in Ithaca Dollars.
"If they're willing to take it has so many stakeholders involved in it that you can really see the circulation and the way that the money is really staying locally," Kurzweil said.
Ithaca Dollars also offers incentives to college students. One of those deals: if they spend $100 dollars, they get 125 Ithaca Dollars in return.