The Importance of Cash Transactions: Examining Regions Where Cash Use is Declining, by JEFF PRESTRIDGE
Cash, good old greenbacks, is crucial for our ailing economy, and I stand firm on this. While banks, government agencies, and big payment companies may tout the consumer benefits of a digital payment world, I believe the UK should remain a country where cash – notes, coins, the works – is universally accepted.
Whether it's paying for parking, train tickets, or weekend treats like coffee and pastries after a hard week's work, we've got a right to pay with cash. Despite the drop in cash usage over the past six years, confirmed by the map to your left, we can't ignore the convenience and necessity it presents. This decline isn't just due to reduced consumer demand, but also retailers abandoning cash due to handling difficulties and limited banking options.
It's time we enshrine the right to payment choice in law to prevent cash from fading away. Without such protection, cash might gradually disappear, making everyday transactions more challenging for some of our society's most vulnerable members, such as the elderly, unbanked, and individuals with learning disabilities or mental health issues.
This isn't only about these groups – it affects everyone. A cashless society exposes us to increased risks and costs, including higher fraud and regular payment system failures that might prevent us from shopping or accessing our own money.
Consider last week's Marks & Spencer IT meltdown, causing contactless payments to be routinely declined in stores without a PIN[5]. Or the Barclays IT failure in early 2021, disabling some customers from paying their taxes on time[6].
In a cashless world, giant corporations like Visa and Mastercard could dictate the terms, jacking up merchant fees and hypothetically charging consumers for every contactless transaction. Without cash, the banks might even be able to block our access to money at a moment's notice.
A report by the Commons Treasury committee highlights the impact of dwindling cash usage. Cash was used for just over half of all payments in 2013, but that figure fell to 12% ten years later[2]. Unsurprisingly, the financial institutions argue this reflects consumer preference for digital payment options.
However, I question whether this wholly reflects consumer choice. Problems arise when cash access is restricted due to bank or ATM closures, or retailers refusing to accept cash. The Treasury committee's report provides evidence of varying cash usage across the country, with some areas experiencing drops of more than 50%[2].
The report suggests that retail areas with high volumes of cash withdrawals often have higher child poverty rates, while more affluent areas have smaller cash withdrawal volumes[2]. However, it overlooks how these cash withdrawal figures may be influenced by the growing number of businesses that do not accept cash.
In conclusion, while discussions on cash acceptance levels continue, it's vital we don't neglect the importance of protecting access to cash for everyday transactions. With dwindling cash usage, particularly among vulnerable groups, we risk creating a two-tier society where those who can't use digital payment systems are left behind. Don't let the financial institutions swipe away our hard-earned cash.
- The ongoing debate about cash acceptance levels in the UK demands our immediate attention, as the convenience and necessity of cash cannot be overlooked.
- In 2024, cash will still play a significant role in our personal-finance management, particularly for everyday transactions, such as paying for parking or train tickets.
- The elderly, unbanked, and individuals with learning disabilities or mental health issues may suffer if we move towards a completely cashless lifestyle, as they may struggle with digital payment options.
- The banking and finance industry, including giants like Visa and Mastercard, could potentially exploit a cashless society by jacking up merchant fees or even charging consumers for every contactless transaction.
- Instead of relying solely on digital payment methods, let's ensure the education and self-development of the populace, equipping them with the necessary skills to navigate both the physical and digital financial landscapes.
- A comprehensive review of the banking system is necessary to ensure that cash remains universally accepted and accessible in Buckinghamshire and other regions.
- The decline in cash usage is a concern for the general-news sector, as it could lead to increased risks and costs associated with payment system failures and fraud.
- As we strive towards a more digitally-focused society, it's crucial to remember that cash is not a relic of the past, but a vital tool in maintaining a balanced finance and lifestyle, regardless of the advances in technology or the changes in the business landscape.
