Cash is still king
Cash is still by far the most widely used form of payment in all regions of the world and cash in circulation is growing, according to a new report published today by G4S.
The World Cash Report surveyed 47 countries covering 75 per cent of the global population and over 90 per cent of the world’s GDP. The findings show that demand for cash continues to rise globally, despite the increase in electronic payment options, including mobile in recent years. Cash in circulation relative to GDP has increased to 9.6 per cent across all continents, up from 8.1 per cent in 2011.
The report highlights the variety of payment habits in different regions. In Europe 80 per cent of point-of-sale transactions are conducted in cash, while in North America, where card payments are most regularly used, cash use still accounts for 31 per cent. In Asia the rise of online purchases does not mean that cash is taken out of the equation, with more than 3 out of every 4 online purchases in a number of countries paid for by cash on delivery.
Chief Executive of G4S’ Global Cash Division, Jesus Rosano, said:
“Cash remains fundamental in our day to day global economy. The evidence shows that contrary to popular opinion, demand for cash is growing in absolute terms and relative to GDP.
“People trust cash; it’s free to use and readily available for consumers, it’s confidential, it can’t be hacked and it doesn’t run out of battery power– these unique qualities continue to hold significant value to people living on all continents.
“Above all, the World Cash Report highlights that wherever people are in the world, they use and value a range of payment options. There is no region where everyone chooses the same way to pay and cash remains hugely important all over the world.
“Because cash will continue as an important payment option it is essential that businesses and institutions continue to manage the cash cycle efficiently.”