There's life in the old dog yet – despite all the prophecies of doom, digitalisation is still failing to oust physical cash. A recent study by the European Central Bank shows that cash is and remains the most prominent payment method in Europe. In numerical terms, almost 80 per cent of all transactions use cash. If you consider the value of the payments made, cash makes up 54 per cent.
In its new infographic “cash is trend” cash management specialist GLORY reveals what impact the digital versus physical debate is having on payment behaviour and how retailers can take advantage of the immense volumes of cash (food retailers alone handled some EUR 77 million in cash in 2016) with new services:
Banks are increasingly consolidating their branch networks. Around 2,200 branches have closed in Germany in the past two years alone. A recent study by Oliver Wyman even predicts a widespread dying-out of banks in Germany, claiming that the number will plummet by 90 per cent by 2030.
Retailers are assuming the role of cash suppliers: the high demand for cash is prompting retailers and banks to set up partnerships in the form of cash and cash back services. In Europe, more people now request cash back (7%) than withdraw cash over the bank counter (6%) and the network of around 50,000 tills permitting withdrawals of up to EUR 200 per purchase, is now almost as dense as that of ATMs (over 58,000).
Modern cash management technologies are helping to implement new concepts profitably and securely: a win-win situation for everyone involved. Retailers can pay their surplus cash to customers, save money on cash-in-transit firms and set themselves apart from their competitors. Banks no longer have to invest in their own self-service machines or manage several branches but still maintain a presence on the area. Customers are guaranteed a supply of cash and a positive shopping experience.
