July 8, 2020

Why will we continue to use cash?

Cash still has great popularity. Moreover, it has points in favor that other payment methods have yet to develop. So much so that the 53% of consumers prefer the cash, Meanwhile he 87% of transactions at point of sale they are made with physical money, according to the latest study by the European Central Bank on this subject, presented today at the seminar organized by the Institute of Coordinates of Governance and Applied Economics. This study puts on the table the simple fact that cash and its use, as it is known today, will not disappear.

Saving is one of the main reasons associated with the long life that awaits cash. According to data from the Professional Association of Private Security Services Companies (Aproser), the 40% of citizens think that family savings are more effective if payments are made in cash. In addition, although the Internet is implemented, developed and growing at exorbitant levels, there are rural areas where network coverage does not exist, so payments through a POS become impossible, as well as transfers.

“This is the case of the Spain emptied", Explains the Professor of the Foundation for Financial Studies, Miguel Ángel Bernal, who points out that" there will always be small expenses such as coffee or a loaf of bread that will be difficult to pay if it is not in cash. "

Another reason why users refuse to abandon this payment method is the security factor, specifically, Cybersecurity In this sense, the president of Aproser, Eduardo Cobas, points out that cybersecurity is "still to be developed and no banking entity is exempt from suffering a cyber attack." A reason supported by countries such as Sweden, which disagrees about the disappearance of cash due to the impact that a possible attack on the country's banking system could cause. According to the statistics of the association, during the first semester of the year a sustained growth in the Eurosystem of 2%, similar to previous years. Therefore, Cobas argues that "it is flatly false" the fact that the cash will disappear.

A third reason why this payment method is sustained is the user privacy. For Bernal, a transaction such as the one that requires payment “in cash” only involves two people, without details of the product or services purchased, date, place and time. Meanwhile, digital payments store all data, so that an attack or security breach can jeopardize the privacy of users.

Despite all this, some countries in Europe, such as Denmark, have already dated the disappearance of cash. For the Danes, the year 2030 will be when this payment method finally disappears. A fact associated with the proliferation of “secure” payment platforms. For its part, the United Kingdom and the Netherlands have also entered the bid for alternative forms of payment that have been propelled in recent years. And in the case of Italy, the boot country has started with measures that aim to boost payment with “plastic money,” according to the latest study that PwC consultancy developed on the future of this variable.

. (tagsToTranslate) Savings (t) Economic measures

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