The War On Cash Is Real...But Is It Based On Propaganda?

| 12 Jul 2018

The War On Cash Is Real...But Is It Based On Propaganda?

The War on Cash is Real...But Is It Based On Propaganda?

Our polls, surveys and research along with our three decades of experience in the cash handling solutions industry tell us that cash is and will remain prevalent in Irish society for many years to come.

Our latest poll on Facebook asked our followers if they agreed with Mastercard's recent statement that you can't 'live your life' without a means of digital payment. A bold statement we thought, considering Visa's recent Europe wide system crash. Although inconvenienced, people were still able to 'live their lives' without access to a form of digital payment, over those few days.

Unsurprisingly, 73% of our respondents DID NOT agree with Mastercard.

Money Point Facebook Poll

If you've been following us online you will already know that we recently surveyed a small representative sample of our own trade customer base, across multiple sectors including retail, grocery, food & hospitality, leisure and finance.

78% of the customers we surveyed said 50% or more of their weekly inbound payments are currently made in cash. This indicates that there is still a very high proportion of cash being used for payments across all sectors in Ireland. Businesses in the areas of Leisure, Gaming and Grocery Retail were the most significant with an average of more than two thirds of all payments still made in cash.

Read more on this here.

According to an article published by TV3 on the 29th of June, cash is still expected to be the second most frequently used payment method in the UK by 2027, behind only debit cards. The same report stated that there were 13.2 billion debit card payments in the UK in 2017 and 13.1 billion payments made in cash.

cash demand

UK Finance said that rather than being a ‘cash-free’ society over the next decade, notes and coins will continue to be valued and preferred by many. During 2017, 3.4 million consumers hardly used cash at all. But, at the same time, a significant number – some 2.2 million people – predominantly used cash when shopping.

Read more on this here.

In a separate report, published by G4S in April, Chief Executive of G4S’ Global Cash Division, Jesus Rosano, said:

“Cash remains fundamental in our day to day global economy.  The evidence shows that contrary to popular opinion, demand for cash is growing in absolute terms and relative to GDP."

Read more on this here.

It is in the interests of governments, banks and credit card companies to promote digital payments and drive out cash. 

For governments this means that all transactions are traceable and they no longer have the cost of producing, protecting and maintaining a physical currency.

For banks and credit card companies it's about their bottom line. Cash is their main competitor. If cash didn't exist, if every payment moved online, their turnover increases and staff, equipment and physical branches become almost unnecessary, resulting in a massive saving in overheads for them.

The other disturbing fact is that most of the media noise about the decline of cash is actually produced, paid for and promoted by those in line to profit from its demise.

But how much freedom do digital payments really offer? According to an article in the Irish Examiner in 2017, 'back in 2010, both companies (Mastercard & Visa) blocked all donations to Wikileaks. Three years ago (2014), they reportedly blocked payments to a number of anonymisation and virtual private network (VPN) services.'

Where does that stop? Are we really happy for someone else to dictate what we can and can't spend our money on?

Cash use is slowly declining but it's not going to disappear overnight. Until digital payments can be guaranteed to be 100% secure with uncompromised and continuous availability to everyone in society, then cash simply must be retained as an alternative payment method.

I leave you with this quote....


References:

https://www.irishtimes.com/news/ireland/irish-news/visa-apologises-as-card-outage-causes-chaos-across-europe-1.3516594

https://www.irishtimes.com/business/personal-finance/visa-card-issue-puts-brakes-on-drive-towards-cashless-society-1.3519389

http://www.tv3.ie/xpose/article/lifestyle/270785/Are-we-heading-towards-a-cashless-society

http://www.londonlovesbusiness.com/business-news/business/worlds-first-global-cash-report-reveals-cash-payments-are-on-the-increase/20999.article

https://www.irishexaminer.com/viewpoints/analysis/the-end-of-cash-the-cost-of-a-cashless-society-448553.html

 


SHARE THIS...



Back to news listings

Latest News

For Cash Handlers In All Sectors

Latest articles

See all news articles

Subscribe Now

The latest news - direct to your inbox; counterfeit note alerts, cash handling case studies, product & industry news and notifications on new ECB banknote releases.

We are proud to have helped these leading businesses to be even more successful!