Why analysts bet cash will win the war on cash

calendar iconFeb 4, 2019

With headlines and governments claiming a cashless future is near, why do experts and analysts wave away the hype behind cashless stores, dismissing them as "the exception to the rule"?

Payments Source analysts say that it is the market, consumers themselves, that drives the demand for cash. As long as people continue to use it, cash will forever be the people's most preferred and reliable payment method.

Excerpt from Payments Source

Banks, retailers and technology companies have spent years relentlessly working to replace cash with plastic, digital or mobile alternatives. And cash has hit back hard.

"The government and/or payment processors can do all they want to try to get rid of cash, but lots of people still really like it and will continue to use it."
"Richard OglesbyPresident of AZ Payments GroupSenior Analyst at Double Diamond Payments Research

In China, which has the most residents paying via mobile wallets, the government has cracked down on merchants that won't accept cash. In the U.S., the New York City Council will conduct hearings next month on a bill that would ban restaurants and retailers from not accepting cash.

Councilman Ritchie J. Torres, who introduced the bill, views such a no-cash policy as racially motivated, leaving lower-income minorities unable to pay. Stores that ban cash say it cuts costs and improves employee safety, but the trade-offs may not be worth it; Shake Shack, for example, abandoned plans for fully cashless locations last year shortly after testing the policy at one location.

"There will always be the need for a completely fungible, universally accepted form of value transfer — and that's cash,"
"Thad PetersonSenior Analyst with Aite GroupAs quoted on PaymentsSource. (Jan 04, 2019)

It's an example of yet another front for the war on cash. But whether any of it can truly take hold is difficult to assess or even imagine at this point. It is far easier to envision that cash, like most any other form of tender, will never completely go away...

Read full article here

Last Updated: Sep 3, 2021