With increased demand and circulation of cash, why is it becoming more difficult for people to access and spend their cash? In the age of digital, where everything can be done via an app on your smartphone, technology has completely changed the way some people shop. Due to this, banks are slowly beginning to reduce cash infrastructures. How we do bring cash and technology together to ensure cash continues to be accessible, easily used and bring inclusivity to payment methods and financial products.
Central banks across the globe have continued to record exceptional spikes in cash demand, and cash in circulation as people look to increase their precautionary holdings.
This confirms the need and value of cash, not only for the groups of people who rely on and use it to budget their day to day lives but also to provide stability during uncertain times. Covid-19 has not been the first global pandemic in which we have seen people turn to the safety of cash, we have seen this trend throughout history and during numerous periods of economic instability.
The Rise of Cash Technology
In the last 2-3 years, we have seen an increase in cash technology start-ups, created to improve the longevity and accessibility of cash. Sonect and socash are amongst a number of cash positive companies that bring the physical and the digital together.
These start-ups are pioneering how we look at and use cash - from fusing digital and cash payments, providing flexible solutions for cash withdrawals (use your smartphone at a partner store location), to accepting cash deposits and mobile bank accounts.
The new technology is also making cash acceptance more sustainable for businesses by shortening the cash cycle, creating a more efficient way to manage cash flow, and making cash much more suited for our ever-developing digital world.
Cash for the Future
Cash has many appeals – providing an anonymous and convenient form of payment, helping us budget and manage our spending, providing a safety net during times of crisis, and helping to educate about the value of money. Over the years, we have continued to see the amount of cash in circulation growing, even throughout the global pandemic and this has no signs of slowing in the years to come. Instead of shunning the payment choice for other more digital payment types, we need more companies and start-ups looking at how we bring cash into the digital age. Cash plays a vital role to many businesses and consumers; therefore, we need to ensure it can continue to be accessed easily.
When it comes to the long-term future of cash - as with any product, the capacity for improvement, innovation and change will be integral to its continued success, but this can only happen when there is knowledge, support and means available.
Instead of developing cash alternatives, what if we could incorporate the best of digital - security, efficiency, and convenience - to enhance it?