Cash is dead, long live cash
Technological advancements are giving consumers a greater variety of payment solutions, designed to ease transactions and provide increased flexibility and convenience. But as the Bank of England reveals the new designs and security features of polymer banknotes entering circulation later this year, what role does the humble bank note and coin have in a multi-channel world?
In 2013, the Bank of England announced its plans to print new banknotes on polymer substrate. The change begins this September with the £5 note, followed by the £10 note in 2017 and the £20 note by 2020. These new and improved polymer notes signal a recognition of the enduring role cash still has to play in modern society.
Cash vs Digital?
Forecasters, media and businesses alike are putting a big focus on understanding and trying to predict how, if, and when new digital technologies will kill off cash. The growth of non-cash payments is undeniable – Payments UK says that 2015 was the first year that cash was used for less than half of all payments. However, when you remove financial institutions, the same study shows that cash still represents over half of all payments made by consumers and small businesses.
Warnings that cash is dead should be taken lightly and the real question should be how you offer ‘true’ multi-channel payment choice to consumers. PayPoint provides multi-channel payment solutions to the biggest brands in the UK, allowing their customers to pay how and when it suits them, both online and offline. It also supports a market-leading network of 29,000 convenience stores across the UK, where cash’s popularity is notable but where it is equally clear that modern convenience shoppers now expect a broader range of payment methods. .
A pressing question for payment services like PayPoint is how to support retailers and enable them to give their customers the payment method they want. Recent him! CTP research shows that 87% shoppers rely on convenience stores to pay for things, buy day-to-day goods and pick up some shopping at the same time. Put simply, people want choice. The growth rate of its 10,000 contactless card payment terminals across the UK, enabled for Apple Pay, backs this up.
By embracing alternative forms of payment that complement cash: from chip & pin to Apple Pay, retailers can ensure that they offer consumers choice and ensure financial inclusion.
A Cashless Society?
Mark Carney’s statement that digital payments would complement cash rather than replace it has encouraged those concerned about a fast-changing landscape in a world where disruption is the norm.
Embracing a streamlined and integrated solution and giving customers the flexibility to pay in the way that best suits them embodies Carney’s philosophy: each channel is complementary.
Alternative payment solutions – contactless payments and e-commerce, are whetting the appetites of consumers and this trend has seen the growth of PayPoint’s offering, as the leading provider of non-cash payments in the convenience retail sector.
With a network of 29,000 convenience stores – more branches than all banks and Post Offices put together – PayPoint is at the heart of communities across Britain. It provides online, offline, cash and digital payment solutions by arming retailers with tech-led innovations. The modern shopper is time-poor, and providing a seamless solution of on and offline payments should be embraced across the sector to move with the times.
But convenience is not cash’s only asset: true financial inclusion can only be offered when cash is an available payment system. Cash is available to all, and does not discriminate. Cash simply works.
An Efficient Future
As we look to the future, the opportunity to innovate opens up new possibilities: easier and faster payment methods as retailers offer convenience to their time-strapped consumers.
Cash is not dead. It is essential for services like PayPoint to ensure consumer choices are provided for and their forward-thinking offering remains relevant and attractive to the needs of the consumer – long live cash.
Brought to you by PayPoint