Blog
Cash: Reassuringly popular!
June 12, 2014 by Ron Delnevo — Chairman, Cash and Card World
Cash is the "good news" payment method.
Why? Well, at a simple level, because none of us ever complain that we have too much of it.
On the other hand, I often hear people exclaim,"Not another one! I have a wallet full of plastic already!" highlighting the fact that every organization seems to want to give us more cards these days.
The last few weeks has seen a stream of good news about cash turn into a veritable torrent.
For example, the European Central Bank announced during May that 90 percent of all retail payments in Europe of less than 20 euros ($27) are still made using cash. Yes, 90 percent!
Put another way, it is those only those 10 percent of people who try to use cards to pay for small purchases who are causing a problem. They hold up queues paying for a can of Coke, as they first fiddle around to get their card out, and then struggle to insert it the right way up into the point-of-sale device and, finally, puzzle over how chubby fingers can push only the correct PIN keys.
Meantime, the Coke has got warm and the rest of the queue are boiling mad!
More good news about cash was forthcoming in the U.K. Within the last few days, the UK Payments Council has released figures demonstrating that cash use has barely altered in the last 5 years.
So, despite the hundreds of millions of dollars spent by the card schemes promoting their products, and in the face of an avalanche of payment apps, cash has remained the solid favourite of the British public.
The European ATM conference in early June also produced more than its fair share of good news moments for lovers of banknotes.
Highlights?
- Learning that Germans still often pay for expensive cars using 500 euro notes. Apparently, it is not uncommon for 50,000 euros ($67,800) to change hands in this way! The most successful Europeans still love their cash — something for the other 27 EU member states to copy?
- Research from Cardtronics demonstrating conclusively that the presence of an ATM in a retail premises increases both footfall and cash taken at the tills.
- An ATM showcased by PrivatBank of the Ukraine that has no screen, card reader or PIN pad. You simply use your smartphone to trigger the withdrawal, tapping it on the ATM to cause the lovely cash to pop into your hands. A perfect example of how new technology can help make cash even more user-friendly and convenient.
That's probably enough good news for today.
One thing is certain, though. There will soon be more to come, because cash just naturally makes us all happy!
About Ron Delnevo
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ATM Industry Association (ATMIA)
The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.
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