Smart and online technologies are changing the way we pay, however cash is still the most attractive means of payment for a huge majority of people worldwide. We look at 10 key reasons for the relevance of cash. Cash ensures stable currency systems. It is not only the most secure means of payment and resilient in terms of crisis, it also reflects a nation’s identity as banknotes and coins are often a nation’s calling card, valued by people beyond their monetary worth.
1. Cash is democratic and inclusive
Cash is available to anyone and everyone, without barriers, and regardless of their social status, financial standing, creditworthiness, age, gender, race, nationality and ability. Cash does not involve fees and no registration is needed to obtain, spend or accept it.
2. Cash protects privacy and freedom of choice
In an era where every digital and mobile transaction leaves a data trail, paying cash is the only way to protect this right to privacy – this is a core reason for why cash must remain a choice in the payments landscape.
3. Cash is secure
There is no form of payment as secure as cash. With sophisticated security architecture and continuous innovation in security features, cash is almost impossible to counterfeit.
4. Cash keeps growing
Cash is a growth market with regard to both the product itself and to the infrastructure that surrounds it. According to the G4S Global Cash Report, cash in circulation relative to GDP has increased to 9.6% across all continents, up from 8.1% in 2011.
5. Cash minimises risk
With cash, there is no need to put all your eggs in one basket. Countless scenarios consider the risk of a terrorist attack on a country’s financial infrastructure. If that were to happen, it would lead to a complete breakdown of all financial services. Without cash, the country in question would no longer be able to function; with cash, the economy can be kept going
6. Cash in universal
Cash is still the payment method of choice for daily transactions for a large number of people, both in developing and in industrialized countries.
7. Cash satisfies a universal inherent need
History shows that tangible monetary systems have been in universal use since the stone age, which suggests that using cash or other tangible tradables is a universally inspired practice.
8. Cash is tangible
Cash helps cost control. It is much easier to plan your spending when you can see the physical evidence of what you have left.
9. Cash is cost efficient
There is no cost to the customer when using cash. Cash provision is a national responsibility, hence the costs of doing so are transparent and low.
10. Cash is resilient
In a crisis, a solid financial system must prove how robust it is. Empirical data shows that in a crisis, the demand for cash typically rises sharply. The reason for this phenomenon is: trust in real currency.