Have you ever been to the theatre or cinema and then read a review that made you think 'were they watching the same thing'?
When the final Access to Cash report was published last week, I was keen to read the findings. The 132-page report highlighted that though cash usage is declining, its availability has implications for significant numbers of people, and that cash will still be around in 15 years time. The focus is on making sure cash is available to those for whom it remains important and it suggests a number of ways this can be achieved at a time when branch numbers and free to use ATMs are declining.
Now we all see different things, whether it's a book, a play or a film, but surely a factual report should evoke similar responses from its readers. Imagine my surprise then, to read on the same day that cash will be gone in 2 years!
Let's pause and look at what the report says:
- "Ten years ago, six out of every ten transactions were cash. Now it's three in ten and
- in fifteen years time it could be as low as one in ten"
- "The UK is not ready to go cashless. 17 percent of the population, or over 8 million adults, would struggle to cope in a cashless society"
- "UK Finance says cash will account for 16 percent of
- payments by 2027"
- "97 percent of people carry cash"
- "For 25 million people in Britain, or 47 percent of the population, living in a cashless society would present real challenges. Going completely cashless isn't an option yet"; and
- "We've concluded that the UK isn't ready to go cashless in the next 15 years and that a sizeable part of the UK population will need cash for some time"
That all seems straightforward. So, can somebody explain to me how we get from there to headlines like
- “UK's cash payments system could collapse in two years”
- “Pay by cash? Not for long report warns”
- “UK's ability to pay by cash is on the verge of collapse”
Really? The report says there are issues to be addressed but where do these headlines come from?
Apparently the 2 year figure comes from anonymous industry sources. And after reading a detailed report that's the headline? Let's just leave it at that!
People view the future differently and I am mindful of a verse quoted to me at the beginning of my career. (Don't take it too literally):
Two men looked through prison bars,
One saw mud, the other stars
Sometimes it is the stargazer who is the realist. There is a future for cash and for retailers it can be a bright one. You can bury your head in the sand and believe sensationalist headlines or you can look at the facts as presented by independent commentators. These show that accepting cash payments will remain important for the vast majority of retailers for at least the next fifteen years. The good news is you can control and reduce the cost of processing these payments. Nobody (yet) is saying cash payments will be with us for ever, but even in a 'less cash' society they continue to have a key role and cannot be ignored. If you're planning for the future, you need to plan for cash. At Glory we can help you now.
