Digital technologies are changing our everyday lives and the way we make our daily transactions. However, despite the growing popularity of digital payments, cash remains a dominant force in the financial world.

Cash is the only payment method available to everyone, regardless of background, circumstance or ability. As per the statistics shared by World Bank in their 2018 there are 1.7 billion unbanked people worldwide relying primarily on cash.

Further, as per the published data by the European Central Bank (ECB), cash was used for 59% of point-of-sale transactions in 2022 in the entire EU. In the US, at 32%, cash makes up the single largest share of consumer transaction activity and is the dominant instrument for low-value payments.

Here are several reasons why cash is still considered king.

Widespread acceptance: Cash is accepted virtually everywhere and by everyone, making it a universally accepted form of payment. This is particularly important for people who live in rural or remote areas where digital payment options may not be readily available. According to the G4S World Cash Report, 75% of countries report cash is used in over 50% of transactions. According to an ECB 2017 working paper, cash is used in 79% of POS payments across the euro area.

Cash also takes less time and money to spend than people think. According to research from Deutsche Bundesbank, cash payments are 7 seconds faster than PIN card payments. Cash is highly valued in Germany, where 88% of people confirm they want to keep cash an option.

Security: With cash, there is no need to worry about digital security breaches or theft of personal information. When you use cash, your financial information is not stored on any computer systems, making it a safer option for those who are concerned about the security of their personal information. In 2015, in its Special Eurobarometer on cybersecurity, the EU noted: “Whilst the value of the cybercriminal economy as a whole is not precisely known, the losses are thought to represent billions of euros per year.

” Cash does not crash”

Another interesting fact to note is just in the UK, there are 3.8 billion genuine banknotes in circulation and less than 1 in 5,000 banknotes are counterfeit. According to the Bank of England, the value of banknotes taken out of circulation amounted to £5 million in the first half of 2019, much lower than what is lost in cashless fraud. According to UK Finance, annual financial fraud losses across payment cards, remote banking and cheques amounted to £844.8 million in 2018, up 16% compared with 2017.

Independence: Cash allows for complete financial independence. Unlike digital payments, cash does not require an internet connection, a bank account, or any other form of infrastructure. This makes it an ideal option for individuals who value their financial independence and want to avoid being beholden to any particular financial institution or technology. In the UK, 74% of people say a cashless society would take away the people’s right to choose. In the USA, 73% of consumers use cash regularly despite other options being available.

Convenience: Cash is incredibly convenient, especially in situations where digital payment options are not available. For example, when travelling to another country, cash can be a lifesaver, as credit and debit cards may not be accepted everywhere, and exchanging currency can be difficult or expensive.

Financial Inclusion: Cash can be an important tool for financial inclusion, as it provides a way for people who do not have access to banking services to participate in the economy.

Most importantly cash ensures your freedom and autonomy. Banknotes and coins are the only form of money that people can keep without involving a third party. You don’t need access to equipment, the internet or electricity to pay with cash, meaning it can be used when the power is down or if you lose your card. In an EY poll of Open Banking professionals, 20% cited potential for mass outages as the most negative impact of a cashless society.

“Cash is the most secure form of payment with banknotes being 99.9988% genuine”
(European Central Bank )

In conclusion, cash remains king because of its widespread acceptance, security, independence, convenience, and control. While digital payment options are certainly becoming more popular, they have yet to fully replace the reliability and simplicity of cash. So, whether you’re making a small purchase at a local store, or travelling abroad, cash will always be a dependable and convenient option.