Why Legislators Have Stepped Up to Protect Cash

Paramount recently produced a social media campaign highlighting US states that have introduced bills to protect cash users, by making it illegal for retailers to not accept cash.

Visit Paramount’s LinkedIn company page to see the campaign.

Jawahar B. Lalla’s full story…

I am a firm believer that India is a cash country. Having worked in ATMs and banking kiosks space for more than 36 years, I feel this industry is growing and will grow more.

Indian market cash transactions are bound to go up, despite India moving up in the cashless economy and digital space. Cash still remains an equal catalyst in bridging the traditional versus digital divide while driving financial empowerment for the masses.

India uses a lot of cash by any measure. It has a very high ratio of currency in broad money (M1) and a low velocity of cash - that is, a low ratio of GDP to narrow money. The ratio of money held in bills and coins (M0) to the amount held in demand deposit and savings accounts (M2) in India is 51% and ATM transactions in India are worth more than point-of-sale payment transactions. The total value of ATM transactions increased more than five times between 2007 and 2012, from about 3 to 18 trillion rupees, while the value of card transactions barely doubled in the same period from 1 to 2 trillion rupees.

India has always been a cash economy and cash still remains a well-established and widely used payment mode in all sectors and verticals of the market. Cash still rules in India as it is a convenient mode of transaction mainly for citizens living in semi-urban and rural areas. It is the bedrock of daily existence because of the lack of alternatives, the universality of acceptance and the absence of high digital transaction cost.

If we go by past analysis throughout the COVID pandemic, usage of cash was on the rise. As of November 2020, Indians held Rs2674 lakh crore ($356 billion) in physical cash. That’s the highest this number that has ever been seen in the Indian market.

Smart Safes and a Unique Program Helped Ace Hardware Better Manage their Cash Flow

Ace Hardware franchise co-owner Stuart Compton had a problem. His Portland area Ace Hardware locations were accepting large quantities of cash but could only make bank deposits once a week. So, every Friday Compton would find himself nervously transporting cash and coins to their bank.

In this case study, you’ll learn how smart safes combined with Peregrin’s unique provisional credit program helped Ace Hardware better manage their cash and increase safety.

Click here to read the case study.

REIMAGINE THE RETAIL PAYMENT EXPERIENCE

The COVID-19 pandemic has altered many aspects of brick and mortar retail businesses. Some immediate and noticeable changes have been in-store layout, sanitization protocols, customer distancing, and payment options. Even after the pandemic passes, and shoppers return to their favorite retail outlets, many of these changes may remain. Some savvy retailers are taking this opportunity to reimagine the retail experience – particularly when accepting and processing payments. Here are some changes we may see in the near future.

Click here to read the blog.

The Perils of a Cashless Society

Many experts believe cash is going away. However, a cashless society is not a good idea. Going cashless would have a negative impact on many segments of society including the poor – millions of unbanked and underbanked, many of whom are minorities that rely on cash. Cash represents the best form of payment to maintain privacy, it is resilient where digital payments are not, and it is an integral part of many cultural practices like tipping and gift giving.

Click here to download the white paper.

CASH MANAGEMENT IN A CORONAVIRUS WORLD

With the onset of coronavirus nationally, concerns around safe and hygienic retail cash management have become a concern. CIMA America offers solutions that are safe and hygienic and can also save you time and money.

Click here to read the blog.

Cash and the Australia Bushfires of 2019/2020

Like many others, my family and I were on our annual holiday camping just outside Bateman’s Bay in New South Wales when we were advised on New Year’s Eve that it was too late to leave. The bushfires had swung and cut-off all roads - there was no way out. Within a short period of time mobile connectivity, power and water was lost and the only updates on the bushfires was via the car radio. Within the space of 24 hours the only means of purchasing the basic essentials such as food, water and fuel was with cash - that is if you had any.

Updates were few and far between but those that managed to get out to find fuel relayed the message that most stations were out of diesel and once again it was confirmed that cash was the only way to purchase anything including fuel.

On the morning of the 2nd of January, we were advised that the road North had opened giving us the chance to evacuate before Saturday the 4th which the RFS advised would be a day of catastrophic conditions. The road out was hectic to say the least with thousands of people heading North as the road South “the way home” was closed, we managed to travel 40km in 6 hours and had to stop in Mollymook as the road closed ahead of us once again. During that 6-hour period I always stayed positive especially in front of the kids, my “internal fear” was that I would run out of diesel, our cash had run out and no one was accepting digital payments. The next morning the road re-opened for a short period of time and we managed to get through before it closed again, there was absolute silence and an overwhelming sadness in the car as we witnessed the devastation around us, we were all really thankful to make it out of the danger zone safely and to Nowra where we were able to refuel, take a break and prepare for the long journey home to Melbourne via Wollongong.

One of the many lessons learnt, and a very important one is how critical cash is when the digital infrastructure and mobile connectivity collapses around you. Mike Lee CEO ATMIA is fiercely devoted to defending the use of cash globally and quoted that “you need cash so that society can continue to operate in the event of an emergency, cash and digital payments must co-exist.” I agree with him 100% and I’m proud to work for a company with a view, strategy and commitment to support the end-to-end cash supply chain for the Australian people and communities throughout Australia and New Zeland.

My family and I are extremely thankful that we managed to get home unscathed, and our hearts and prayers are with everyone that has been impacted by the bushfires.

Simon Mullin, Armaguard Group

COVID-19 SAFETY TIPS

As the COVID-19 virus spreads across the country, your safety and the health of your customers is of the utmost importance to us. With that in mind, we are pleased to provide a printable flyer that explains why cash is a safer payment choice than plastic credit or debit cards and provides recommendations on how to sanitize your ATM.

To view the Star COVID infographic/flyer, click here.

Providing Emergency Cash Relief to Individuals Impacted by Hurricane Laura

Click here to read how Pin4 and Imagine Water Works provided emergency cash relief to people impacted by Hurricane Laura.

The Value of Cash and ATMs

ATMs do not just dispense cash; they dispense value way beyond that of the banknotes they distribute. These machines play a pivotal role in disaster recovery, poverty alleviation and social protection. ATMs are the unsung heroes of certain social classes and provide the only access to the financial system for certain groups.

Click here to download the white paper, The Value of Cash and ATMs.

“It’s busy in here today,” I said casually to the checkout staff at the supermarket this morning.

“It's a lot busier now that we have returned to accepting cash,” she replied with a big beaming smile.

Woolworths Metro supermarkets in Sydney, Melbourne and Brisbane suffered a consumer boycott when they ‘went cashless.’

But eventually Woolworths listened to Australians and heard them say: “Cash is still king, thanks very much.”

Consumers want a choice of how they pay for their food, services and essentials. Banks, card companies and financial institutions push the idea of a cashless society, but ordinary people are not convinced. Official Reserve Bank of Australia data shows that Aussies are still withdrawing and using cash. Recently the central bank of Canada published research that found that if there are no ATMs or bank branches in a shopping centre or suburb, consumers are more likely to Tap and Go or pay with a card.

“...the critical factor was the distance people had to travel to withdraw cash,” said the Bank of Canada. Is this why banks are closing branches and ATMs? To force us into cashless transactions that can be surcharged and recorded?

Recently I paid my car registration online with a debit card and was slugged $4.81 in card fees.

I’ve had enough. These days I rarely have my payment cards in my pocket. I have removed my cards from my mobile phone ‘wallet’ and I almost always pay with cash. I can budget and keep track of my spending easily. I have given up Tap and Go and my spending is under control - plus, believe it or not, I have lost weight!

Yes that’s right - I have lost weight because I’m not buying so much junk food. I did some research and it’s true - card and cashless payments lead to less healthy eating. Scientists have shown that using cash helps you lose weight.

Our voices are being heard and cash is coming back in a big way. Please share our petition and let’s win this war. Our government should ensure that retailers, especially supermarkets selling food and essentials, accept cash payments well as card transactions.

Sign the Petition: https://www.change.org/saynotocashlesssociety

COVID-19: Why Cash is Safer than Plastic Credit/Debit Cards

Many consumers mistakenly believe plastic credit and debit cards are a safer payment option than cash. However, that is not the case. According to the CDC, coronaviruses can survive on porous surfaces like cash for 24 hours vs. up to 3 days on surfaces like plastic. This printable flyer will help you explain to consumers why cash is a safer payment choice in these trying times.

To view the Star COVID infographic/flyer, Why Cash is Safer than Cards, click here.

Cash is Safe Social Media Campaign

In order to educate businesses and consumers that ‘Cash is Safe,” Paramount produced this award-winner social media campaign in the early days of the pandemic to combat the false reports in the media about COVID and cash.

Visit Paramount’s LinkedIn company page to see the campaign.

COVID-19 Cash & ATM Guidelines

Produced in the first weeks of the pandemic, this infographic from Cypress Advantage was designed to provide truthful information about the safety of cash versus other surfaces and the general cleaning recommendations to help increase user safety with cash and at the ATM.

Click here to download the infographic.