The document discusses whether cash is on the way out due to changes brought about by the COVID-19 pandemic. It notes that cash usage had already been declining in favor of debit cards and contactless payments in countries like the UK. However, the pandemic has accelerated the shift away from cash further as people try to avoid transmission risks from banknotes. Public health authorities are now advising the use of digital payments over cash. This trend has boosted the growth of mobile payment services globally as people seek alternative payment options. While the long-term impact remains uncertain, the pandemic appears to be pushing societies further in the direction of becoming cashless.

1. IS CASH ON THE
WAY OUT?
BY GARY CORBETT

2. POSITIVE CHANGES IN OUR WORKING AND PERSONAL LIVES DRIVEN BY COVID 2
Cash has been in decline but in the pandemic,
nobody wants to deal with cash. There are
endless studies about how cash is covered in
bacteria.
In the UK debit cards since 2017 have been the
predominant form of payment accounting for
40% of all transactions pre-covid.
UK Finance points out that 69% of all adults use
contactless payments.
Use of cash is falling but in 2018 still it accounted
for 28% of all payments in the UK.
Last year “Which” reported that they will be a
reduction in free to use ATM’s, as declining usage
is meaning it is difficult to recoup cost, so more
will charge a fee of 50p to £1.99.
Even so the Treasury reports that 2.2 million
people are still dependent on cash
Natalie Ceeney, the UK’s former chief financial
ombudsman reported:
“We haven’t concluded that it’s impossible, or
even undesirable. But our research does show
that if we fail to plan and prepare for it properly, a
cashless society would do significant harm to the
millions of people who would be left behind.”
Meanwhile, the former UK chancellor Philip
Hammond calling 1p and 2p coins “obsolete” and
a Treasury report finding that just 60% of the
coins being used in transactions are either being
saved or thrown away.
That was before coronavirus – and maybe the
playing field has changed.
The World Health Organisation has told people to
use contactless technology as notes can carry a
virus for several days.
Guidance from the British Retail Consortium said
that stores should encourage card payments over
physical money, even when lockdown restrictions
are eased.
At the same time there has been an accelerated
growth in mobile and digital payments.
Persistence Market Research (PMR) has stated
– that
“ An increase in the lockdown
period across different nations
is expected to decline the
overall monetary value of
transactions. However, even
with the purchase of necessary
goods, the digital payment
market is expected to witness
an increase in revenue. ”

3. POSITIVE CHANGES IN OUR WORKING AND PERSONAL LIVES DRIVEN BY COVID 3
Recent growth has been fueled by concerns that
the virus can be transmitted via cash and cards.
That has seen a shift in consumer choice to digital
payments and a huge momentum for the influx
of new products and services that are well placed
to benefit – such as mobile gaming which is
exploding.
This shift is being encouraged by major
organisations. In India the Reserve Bank of India
has been encouraging consumers to adopt digital
banking services seeing a major growth in mobile
payments. M-Pesa has been waiving transaction
fees on mobile wallets to rapidly growth its base
in Africa.
With the major penetration of mobile devices –
PMR expects to see a spike in mobile payments
and growth even against a backdrop of overall
decline in e-commerce as consumers spend is
reduced. Moreover, retailers are increasingly
incorporating mobile payments into their
payment options.
That is a tremendous performance against a
backdrop where Juniper Research expects global
digital commerce to fall by 14% in 2020
I did a post on Friday 27th March 2020.
https://www.linkedin.com/posts/gcorbett_
digitalcurrency-mobilepayments-payments-
activity-6649044406743638017-11BA
There are now 1 billion accounts using a mobile
payments platform. It’s the “normal” way of
transacting in many parts of the World – Asia
and Africa especially – yet almost non-existent
elsewhere.
Mobile payment specialists like Dynamic Mobile
Billing and Tola Mobile are well placed to
support merchants looking to implement mobile
payments.
Digital and mobile payments will mean a
reduction in cash and a stimulus to mobile
commerce. There are 4.78 billion smart phones
and feature phones globally – meaning 61.5% of
the World’s population potentially could access
these services.
In the face of all this is cash on the way out?

4. POSITIVE CHANGES IN OUR WORKING AND PERSONAL LIVES DRIVEN BY COVID 4
AUTHOR
Gary Corbett is an investor in fast growing
innovative technology businesses that have the
capability to scale internationally.
With over 25 years of investing and developing
a wide range international businesses and I am
looking to work with partners and customers to
mutually develop new opportunities.
https://www.linkedin.com/in/gcorbett/