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Cash is, Relatively, King

Money Wad

The debate on "Is Cash Still King" has been stretched over the past decade but it appears that material cash is still here to stay. It's ridiculous to impatiently rule out cash today because even before the cashless society begins to take off, most people forget about the accountability of cold hard cash.

Cash Guard explains the value of cash in brevity; if cash was dead, banks wouldn't bother renewing them. While it is true that cash may face a decline due to the rising competition of electronic payments and mobile wallets, the fact remains that society cannot abandon cash just yet due to financial, political and cultural reasons.

For example, in China, shadow banking plays an important role in the future health of China's banking system as it contributed to 55 percent of China's GDP at the end of 2012 at an estimated amount of RMB29 trillion according to Moody's Reports.

Although it may seem cynical, the realistic nature of t has room for cash to progressively evolve but not necessarily through eradication of money.

However, there is definitely a need for handling and managing money through cash automation which in turn provide solutions for convenience stores; supermarkets, banks, casinos and etc.

For example, the Marina Bay Sands Casino in Singapore engages the use of Quickjack 2 developed by NRT Technologies for enhanced operability and efficiency. The self service kiosk validates the identity of the patron; display a payment option, processes cash, debit or credit and eventually confirms the transaction status to a host system.

Cash automation services provide more than just convenience; they are also security measures to limit criminal behaviour through advanced security systems that provides more efficiency and prevents human error in accountability.

In any case, cash is still here to stay because the reliance on such technology is still in demand and what more if Singapore in this case is banking on the potential growth of its gaming industry still in its infancy stage.

Interested to engage in more of such discussions and debates? Then join us at the inaugural The Cash Handling Show Asia 2014, one of the 8 co-located tradeshows alongside the 19th Cards & Payments Asia 2014. The show aims to be the leading marketplace and ideas exchange for Asia's banks, retailers, casinos, government and all cash intensive businesses – who are looking for innovative ways to improve efficiencies in managing, transporting and securing cash.

This is a guest post by Hanis Jazil

[Image: flyinslugs - Flickr]

Comments

  1. Pingback: Retail’s Dilemma over Cash/Cashless - Total Payments : Total Payments

  2. Alan

    One of the main incentives for using cash in the UK is that retailers will often refuse to accept cards for small transactions. I presume this is because they have to pay what is proportionately too large a charge for accepting the cards. If the card issuers want their products to be used for all transactions (and I am not sure they all do) I think they should waive the charges for small transactions.

    Small transactions are often the very ones where the greatest saving in time could be made by paying with a card. Otherwise time is spent whilst people search through their purses to find “the right change” – especially for parking machines which often demand exactly that – and the retailer finds after a run of such transactions that even they do not have enough change and have to ask the customer for particular coins, and wait for it to be provided.

    I suspect the proportion of legal transactions where there is a demand for anonymity is actually quite small. Whether we want to provide facilities for illegal transactions and tax evasion is a debatable point, but in any case it could quite likely be irrelevant to the cash or cashless debate since the criminal community seems to be entirely capable of using the existing legal systems, cash and card based, for their own purposes.

    Mostly I think we are providing cash because people think (falsely) that it is more convenient for small transactions; it saves people with little money the trouble of having to know how much money is left in their bank or credit card accounts before they get paid again (easier to use mobile banking apps would help here); many people (how many?) do not have bank accounts and don’t want the expense of pre-paid cards or don’t know how to get or use them; and it is still more familiar so that people feel more comfortable using it. And of course there are many more scare stories in the newspapers about credit card fraud than there are about counterfeit banknotes.

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