Why less cash doesn't mean cashless
It is no secret that the Coronavirus pandemic has led to declining cash usage rates. Prediction models suggest that cash usage in the UK will decline by 38% in 2020. This is a faster rate than Europe, which expects to see cash usage decline by around 30%.
Figures like this have increased the rumours that we’re witnessing the demise of cash. So, while we cannot deny that cash usage is declining, there is still no reason to suggest that we’ll be seeing a cashless society anytime soon.
Instead, this decline of cash usage highlights the necessity of smart cash handling and ensuring that every consumer is considered before making drastic changes to payment options.
Why Cash Is Here To Stay
Despite a plethora of payment options now being available from contactless, phone payments and even cryptocurrencies, let us not forget the unique selling points that cash offers.
For a start, cash is the most accessible payment option available. Those who are unbanked, unable to access technology or prefer the security and anonymity of their purchases can all access cash.
In the UK, for example, there are 1.6 billion people without a bank account. What’s more, 20% of the UK population rely on cash over other forms of payment which typically have a barrier to entry. For many people across the world, it is their personal preference to use and stay loyal to cash regardless of the other payment choices on offer.
For retailers, cash is still vital. It is one of the cheapest forms of payment to process, but also is one of the most reliable. As many businesses move towards digital payments, the risks of fraud, power outages and system failures have yet to be fully explored.
So, before a hasty switch to a cashless business, retailers need to consider both the impact of removing cash to their customer base and the reliability and risk to their business operations.
How To Make Cash Handling Smarter
Since the pandemic, it is evident that retailers need to do as much as possible to alleviate the concerns of consumers while also maximising profitability and reducing shrinkage.
At Volumatic, we’re committed to helping all businesses and retailers make the most of accepting cash as a payment option.
“Even during the lockdown, Volumatic has seen an increase in orders from retailers looking to make cash handling faster, safer and more efficient. We’ve been recommending our CCi solution as a one-touch cash handling solution that counts, validates and stores notes while sitting securely at the point of sale.
By limiting cash contact and ensuring safe cash storage, Volumatic has many happy customers who feel much more comfortable in offering cash as a payment option to their customers, even during the pandemic.” said Mike Severs, Sales Director at Volumatic.
Whatever the cash concern for businesses, whether it is limiting cash contact, reducing internal shrinkage, increasing accuracy or helping to speed up cash processing, Volumatic is here to help. Volumatic offers a range of cash handling solutions, perfectly designed for businesses of every size to ensure that cash remains a safe, profitable and efficient method of payment.