Secure Innovation, the global leader in intelligent cash protection products and remote asset management services, are stating the importance of cash in society and have been examining its key benefits in their latest insights article, Why is cash a critical part of society? The article highlights the importance of ensuring cash continues to thrive to protect all areas of society.
The introduction of digital payment methods (such as credit/debit cards, smart device payments, digital wallets and cryptocurrency) are making some countries consider removing cash as a payment option altogether. China, Sweden and Finland are the front runners in adopting a ‘cashless society’.
Since the rise in popularity of these systems, there has been a steady decline in the circulation of cash. However, a sudden and quick movement away from cash poses a significant amount of risk to business and communities, usually affecting those most vulnerable.
The Cash Census Report 2022 found that 96% of people withdraw cash with some frequency, whilst 83% had cash either in their wallet or at home. The same report found that two thirds of the UK population are concerned about fraud when making digital payments, and one in five would struggle in a cashless economy.
Cash provides many benefits to individuals and business including;
- Cash provides inclusion: A study by the Bank of England found that cash was the first preference payment method for 27% of 65+ year olds and 28% of those in lower socio-economic groups (C2, D and E). This shows that those with lower incomes rely on cash for everyday expenditures and for budgeting purposes.
- Cash for budgeting: With cash, you can only spend what you have, helping to avoid any unplanned expenses or impulse buys. In the cost-of-living crisis, having access to cash is more important than ever.
- No hidden costs: One advantage of using cash for a business is that a payment of £50 means a payment of £50. The business won’t need to pay out for card vendor fees. This is particularly critical for small/independent businesses where every penny counts, and who play a key role in the local economy.
- Reduced risk of fraud: Many UK residents fear the potential for fraud, with good reason. A report by Flashpoint states that the finance sector experienced 566 data breaches in 2022. That’s 254 million leaked financial records.
- Higher levels of control: More than ever, people are storing cash at home in a bid to have more control over their finances. Between March 2020 and June 2022, the value of notes in circulation increased by £12.3 billion. However, transactional cash use hasn’t grown with the same speed, suggesting that individuals are now storing more cash at home.
Secure Innovation Managing Director, Tony Westington, has been pioneering the protection of cash for many years. He says, “Cash provides a solid system that will never fail you. There are very few scenarios where cash doesn’t deliver, and this has been proven time and time again throughout history. It provides stability during times of disaster or allows for economies to continue during problems such as power outages and telecoms failures.”
Storing cash can provide an element of risk and worry for business owners. Whether in a retail environment, stored in an ATM or whilst in transit, businesses want peace of mind that their assets are safe. Cash’s greatest strength of universal acceptance is also its greatest vulnerability; meaning its protection and security must be paramount.
For over 40 years, Secure Innovation have researched, designed and developed innovative solutions with cutting edge technology to protect people, and safely secure cash and high value assets.
You can read Secure Innovation’s latest insight article here: Why is cash a critical part of society?
Photo by John McArthur on Unsplash
