The Pandemic Has Changed Payments, But Cash Is Here To Stay!
The Pandemic has had its fair share of changes in the payment sector, and one of the speculations is that it may as well speed the abandonment of cash.
Media sources branded the banknote an “enemy of the people” for the nature of its dealings (up-close and one-on-one transactions), claiming cash would speed the spread of a deadly health pandemic.
Soon road and bridge tolls were no longer taking cash, and merchants asked shoppers to pay through any other avenue but not paper money.
According to stats by PSCU, since the last week of May 2020, ATM withdrawals suffered a significant 30 percent drop or more YOY(year-over-year) for ten successive weeks.
Federal authorities further sent the public into a mix-up about the safety of cash when the CDC recommended that places of business follow proper hygiene, partly by encouraging contactless transactions to “limit the handling of cash.”
Still, Homeland Security termed the employees who work in ATMs as an “essential critical infrastructure workforce.”
Across the border, the Central Bank of Canada encouraged business owners in a press release, to continue taking cash as “the dangers posed by using banknotes are no worse than those posed by touching frequently touched surfaces like doorknobs, rails, and kitchen counters.”
Cash is Here to Stay!
One analyst is particularly skeptical about the disappearance of cash. David Tente, a top executive at the Sioux Falls ATM Industry Association, is positive about the long-term prospect of banknotes. He also confesses that shoppers have relied less on cash thanks to the stay-indoors restrictions.
“I’m positive cash will emerge just fine post-pandemic,” says Tente. “Many shoppers still prefer cash in many cases.”
According to the expert, a cashless economy will mean financial-inclusion problems for those who don’t prefer or qualify for credit & debit cards.
In June, Tente’s company rolled out an “ATM & Cash Revival Plan,” that focuses on pushing for the prohibition of cashless stores and improving ATM sanitation and safety procedures.
But Sioux Falls ATM Industry Association isn’t the only believer in the power of cash.
Cardtronics plc, United States’ largest ATM firm, is also looking forward to continuing its ATM business. In a May stockholder forum, the firm’s CEO, Ed West, expressed sureness people will keep on using banknotes.
“While the use of banknotes at the storefront has reduced for a long time, that trend has mainly been fueled by a surge in the count of total payments,” West said.
West also conquers with Fed Reserve stats, which hinted “cash remains a preferred method in the US; nearly 26% of the most common shopper payment method, making it a popular method out there still.”
Author Bio:- Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of merchant account providers UK. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie on his backyard porch, as should all right-thinking people.