When Will We Stop Using Cash? The Future Of Payment Services.

The idea of cash becoming obsolete sounds far-fetched, doesn’t it? Have you ever wondered, though, about the future of payment services, and how the government decisions around this conversation may impact your business?

Cash may well be going the way of the VCR when we see the global innovations that are changing the face of payment services.

Can you imagine a world without cash? Let’s look at this in a little more detail.

The Case for Cash

If we’re honest, most of us probably don’t carry much cash anymore. There are dozens of payment services which are safe and convenient and always available. This is based, however, on the premise that we have a bank account and a few bank cards that we can make use of.

So, who still uses cash regularly?

Cash still remains the basic exchange medium for the poorer people in society. The main reason for this lies with the cost of bank fees which – when you’re living on the breadline – you simply can’t afford. Therefore, there are still many people who don’t have bank accounts at all as they may not qualify, have a low or irregular income.

What about the older generation with an inherent distrust of ‘the system’ and an unwillingness to learn how to transact on the internet?

In actual fact, our elders may have a point.

It’s interesting to note that making use of cash significantly reduces the chance of identity theft. A study on identity fraud noted that 6.64 percent of consumers experienced identity theft in 2017, with the number expected to rise as the criminal element grows. (A certain amount of anonymity in this connected age isn’t always a bad thing.)

Of course, cash is convenient, widely accepted and incredibly helpful when trying to manage our budgets!

Cash and Crime

The main problem with carrying cash is the risk it places you under.

If our cards are stolen then we cancel them and order a replacement, hopefully before the thieves get their hands on our hard-earned money. But if we are robbed of a wad of cash, well, it’s gone forever. Drawing and carrying large sums of cash makes us a target, and as some well-oiled criminal elements are watching the ATMs and banks, we are putting ourselves at risk.

It’s clear that cash still has its place and isn’t going anywhere fast, but it’s great to know that, for those of us who prefer to go cashless, there are so many other options.

The Future of Payment Services

The plethora of non-cash payment services now available are enough to scramble our brains. Consider just some of these:

• Credit cards
• Debit cards
• Charge cards
• Prepaid cards
• Bank transfers
• Checks
• Money orders
• Digital wallets
• Bitcoin
• Online payment systems (I.e., PayPal)

And the number of these services is growing all the time.

World Payments Report, in an article on Non-Cash Payment Volume, says “Global non-cash transaction grew at 12% to reach 539 billion during 2016-17. In WPR 2019, we estimate that global non-cash transaction volumes will record a CAGR of 14% during 2017-2022F.”

Marion King, Director of Payments at the Royal Bank of Scotland is quoted as saying, “Technological innovation has triggered a dramatic increase in digital payments. This shift from physical to digital payments not only provides simpler, faster and secure payments for us all, it has also enabled new and progressive business models to emerge.” (Source)

Is cash still king?

With the exponential growth of online shopping portals, digital processes and secure, instant money transfers, we think that cash may be losing its crown.

Huge Solutions for Payment Services

Yes, online options are certainly the future of payment services and are a preferred transaction method for most of us, and certainly for businesses.

Are you one of those forward-thinking business owners who is looking ahead to future-proof your company? If so, then you’ll see how stable, secure and reliable connectivity solutions are going to become indispensable – if they’re not already for your business.

We would like to invite you to chat with the Huge Connect team and let us show you how our solutions are already assisting businesses – large and small – in the world of digital payment services.