Despite the increasing use of mobile phones and contactless payment for purchases, it’s clear that cash will never die.
For all the talk of an increasingly cashless society, a group of the world’s central bankers doubt that hard currency will vanish completely.
Victoria Cleland, The Bank of England’s Chief Cashier, states “I don’t use contactless” in this article. It’s definitely not surprising to learn that the woman whose signature adorns Bank Of England banknotes is a big fan of cash. However, she thinks that predictions of the death of cash are premature and reveals that she has personal reservations about the security of contactless payments.
LINK – the UK’s largest cash machine network – has announced a 20pc reduction in the fees banks pay machine operators when their customers withdraw cash in the UK. These reductions will make some cashpoints no longer financially viable to run and don’t even get us started about ATM reductions in Ireland by the bank!
Small towns and villages will definitely be feeling the brunt of this! Could you imagine strolling down the road to buy a newspaper and a pint of milk with your contactless card? It’s just not right! ATMs are what holds communities together. People rely heavily on having easy access to cash to pay for these goods and services locally.
8 reasons why cash will never die:
Children
Could you imagine a future where your child’s tooth falls out and you transfer £1 into their bank account? It would completely ruin the magic of the classic tooth fairy illusion!
It’s a tradition that when a baby’s tooth falls out, parents would tell them about the magical tooth fairy that comes at night to collect their teeth and leaves them some treasure under their pillow. (Bonus for the parents as kids will go to bed early all excited!) As long as we have small kids losing teeth, we’ll never convert to a cashless society. Cash will never die.
The idea of allowance teaches your child responsibility, they learn that to earn money and treats they have to work hard for it. Setting them up for future expectations. Now we’re not entirely sure how prudent it would be to open an account in your six year old’s name, allowing them to balance a cheque book and entrust them with a debit card! It’s more ideal and trouble-free to give your children their allowance in cash. That way they can head down the shop and buy whatever they want, or put it into a piggy bank!
‘Cash Only’
Tips are a huge way to show gratuity around the world (especially America, they tip everything!). There are many people that rely on tips and cash deposits such as waiters, cab drivers, bus drivers, bellhops, delivery men, charity collectors, the homeless etc. to fund themselves or their services. Although taxis are now offering you to pay over the phone with your debit card, many customers find it much easier just to pay up with cash. Especially if they’ve only got a little distance to go costing them £3!
Cash is the main payment method on buses. On London buses you can pay through contactless card but with buses in small towns and villages you are expected to pay in cash. In fact, according to the business insider, “2.7 million people in the UK rely almost entirely on cash transactions.”
Summer Jobs
The summer job market would plummet if everyone was paid by check or debit card. The whole point of part time summer jobs for youngens still in school, is that they earn some walking around money, money that doesn’t get taken by the bank. Now why would anyone want to take away the chance for their younger children to earn themselves money? Especially when it means parents will be coughing it up for them…
There are a lot of construction jobs where the employer and the worker agree a contract where they get paid cash in hand because it might be a specific timed project or part time and this way they won’t lose time on time-consuming documentation.
Fun
Without cash, your children will grow up in a world without vintage arcades. The whole point of an arcade is that you have as many coins as possible and go crazy. Arcade companies would completely disappear because their machines aren’t contactless card friendly. The whole point of an English based holiday is that whilst the adults are having a drink in the bar, the kids get to run wild in the arcade to give you some peace and quiet! WHAT WOULD WE DO WITHOUT ARCADES!
It’s not just arcades but slot machines in pubs and bars, pool and snooker tables would have to change and don’t get us started on raffles!
Vending Machines
Nothing is better than an ice cold drink from a vending machine right? You can find vending machine anywhere. But without cash, all of those would disappear.
It would be strange walking up to an ice-cream van, asking for a classic 99 and paying by card wouldn’t it? *Queue F.R.I.E.N.D.S quote* IT WOULD BE THE END OF AN ERA!!
Holidays
It’s always been the norm that with a holiday soon you go to the post office and do a swap for foreign currency, or you get cash out at an ATM when abroad. Tourists and holiday goers feel more comfortable paying in cash when abroad because it’s more secure. They can also monitor how much they are spending.
It can be scary paying for something abroad with your card because you might not always be aware of how much is actually being taken out of your bank account. This is why it’s much easier to manage your holiday with cash.
Security
With cash you don’t need to give away personal information, therefore cash is more secure. Other than cash, with every payment option, you need your personal details to be recorded in a database which could always be breached or scammed. Customers will feel safer handing over cash because they know there isn’t a risk that they could get charged more or scammed.
Generations
Don’t forget that we are still living among those who wouldn’t have had a mobile phone when they were 30 years old! The Diners’ Club Inc, introduced the first universal credit card in 1950. This means that before then, cash was their only payment type.
Technology is changing and adapting every day which the elderly might struggle with. Not every older person will have a smart phone or computer to be able to complete online transactions. Therefore, they will rely heavy on cash which they most likely store in the house. You know what they say, you can’t always teach an old dog new tricks.
So as you probably know by now, there are a lot of reasons why cash will never die. Even the ACS Local Shop Report 2017 states that 76% of customers pay by cash and the average shopper visits their local store 3.47 times per week. That’s a lot of cash being spent!
ATM machine numbers are still on the rise as more stores, hotels, restaurants etc. are getting them installed to benefit their customers. 58% of stores provide their customers with cash machines. This means that there is still a demand for cash everywhere. Cash is here to stay and so are cash machines. Cash will never die.
If you have enjoyed learning about how there is still a demand for cash and would like to consider installing an ATM in your shop, then please get in touch! To find out more about the cash machine benefits, just check out this blog.