Article Summary:
Michelle Comfort on the decline of cash usage in a rapidly digitalising world

Our Senior Manager Michelle Comfort writes about the decline of cash usage in a rapidly digitalising world in her latest article.

First published on Financial IT, the piece highlights the risks of a hasty transition to a cashless society and calls for thoughtful measures to ensure cash remains accessible for those who need it most.

Key Takeaways:

• Cash usage is declining rapidly due to the rise of digital payments:
  • In the UK, cash fell to 12% of all payments in 2023.
  • In the Eurozone, cash use in-store dropped from 59% (2022) to 52% (2024).
•  Access to cash is decreasing:
  • The number of ATMs in the UK has fallen by 37% over the past decade.
  • More businesses, including large chains like Gail’s and Itsu, are going cashless.
• Cash still matters for many:
  • It helps people manage tight budgets and reinforce spending limits.
  • It acts as a safety net in crises, offering financial stability and preparedness.
• Some countries are taking action:
  • Sweden advised citizens to keep cash for emergencies.
  • Norway made it mandatory for businesses to accept cash.
• Potential solutions to preserve cash access:
  • Shared ATM networks (e.g., the Netherlands’ “Geldmaat”) to reduce costs and ensure availability.
  • Partial cash acceptance mandates for essential sectors like grocery stores and pharmacies.
• Governments reluctant to promote cash: 
  • Due to its link with the informal economy and operational burdens for businesses.

In summary, cash usage is in decline, but it must be managed carefully to protect vulnerable populations who still rely on it.

To read the complete article please visit: https://financialit.net/blog/futureofcash-digitalpayment/cash-life-support-why-it-still-deserves-future