Unlocking The Full Value Of Cash

Earlier this year, the FCA's long-awaited access to cash legislation came into place, making access to a specific payment method a legal right for the first time. 

The UK is not alone in doing this. Across the pond, we have seen similar measures taken in Connecticut, Massachusetts, Colorado and Tennessee, as many states move to ensure their citizens have access to cash. Far from being on the way out, cash is here to stay. 

Retail, hospitality, travel, and tourism businesses also realise this. Recent research data has found that nearly two-thirds (57%) of organisations in the US, UK, Spain, Italy, France, and Germany expect to never become cashless. Turn the clock back a few years, and a different result would have appeared. 

So, what's changed?

Increasingly, businesses and regulators realise that the noise around the death of cash was just that. Hollow, empty, and annoying. A quick look at the numbers makes it clear what is going on. Data from UK Finance shows that while cash saw a decline in usage a decade ago, it has since stabilised and remains the second most used payment method. In the US, the same story is true. Recent research from YouGov found that 3 in 5 (67%) of American adults prefer to use cash for in-store payments. 

However, while cash usage remains strong and popular with consumers, retail, hospitality, travel, and tourism businesses struggle to extract its full value. Recent payment research uncovered the startling fact that 41% of companies still rely on manual cash handling processes. Consequently, this is leaking value from cash payments due to discrepancies, expensive security measures, and operational inefficiencies.

Such is the scale of the problem that companies with more than six people handling cash generate over £400,000 annually in cash security costs alone! It's unsurprising that a shocking 20% of the value of cash is lost at organisations with 3-5 people handling cash. At the same time, manual cash handling processes mean businesses lack visibility and transparency about their cash estate and, therefore, have an incomplete view of their actual financial situation. 

How can CashTech Help?

As cash is clearly not going anywhere, it's up to cash management to change. And just as digital payments adapted thanks to the arrival of fintech, a similar transformation is taking place with cash management due to the arrival of CashTech. 

As its name suggests, CashTech is an amalgamation of cash and technology. It defines the changes in cash management with the arrival of smart hardware solutions and sophisticated software systems. Combined, these solutions automate cash management and deliver real-time data insights into a business's entire cash estate. 

Businesses with CashTech solutions in place can finally extract the full value of cash by eliminating discrepancies and expensive security and operational costs. Moreover, using real-time data helps boost regulatory compliance and improve financial planning and cash flow management. 

When it comes to cash we have arrived at an inflection point. The idea that cash will one day disappear is (ironically) now dead. Cash is here to stay, and its immortality allows businesses to improve their cash handling and management processes. Just as investing in fintech solutions makes sense with electronic payment methods, the same approach is now needed with CashTech. Investing in CashTech shouldn’t be viewed as a cost for businesses; it's an opportunity to unlock a wealth of opportunities.