The proportion of cash payments in everyday life is declining. Experts therefore consider the minimum supply of cash to be at risk. This poses a problem for those who prefer to pay in cash. In view of the continuing digitalisation, integrative payment concepts are also necessary in public life.
The reasons for the decline in cash payments in everyday life are complex and, at the moment, probably mainly attributable to the COVID-19 pandemic. However, if notes and coins are used less, more pressure is placed on certain industries to continue to guarantee the minimum supply of cash. The reason is simple: With increasingly alternative payment options, people’s preferences for payment are also changing. While coins and notes are primarily used for everyday purchases, in restaurants or public transport, many people pay for electricity bills, administrative procedures or larger purchases by card payment or bank transfer. Many people, but not everyone.
What demands does this place on payment concepts in public institutions?
Employees in government offices, citizens' advice bureaus or energy supply companies are confronted with enormous stresses on a daily basis. In addition to numerous applications and consultations, there are also payment transactions that have to be processed. To relieve this situation, the European Court of Justice ruled in January 2021 that authorities may refuse cash payments – however, this excludes certain population groups that cannot or do not wish to use direct debit or card payment.
MaxiPay, CSG Systems’ payment solution with integrated NMD-100 banknote dispensing system from GLORY shows how cash-paying consumers can still be integrated – and all this without creating an additional workload for employees:
- There is a lot of public traffic in Munich’s Foreigners Office. Thanks to the payment terminal, up to 250 payment transactions can be processed daily. Citizens continue to pay directly on site and benefit from the multilingualism and intuitive operation of the devices. This not only reduces the burden on the authorities, but also ensures greater efficiency and security in cash handling.
- By purchasing the MaxiPay cash recycling solution, real estate management company Wiener Wohnen also enables its customers to make cash payments 24/7. Tenants can pay their bills on site conveniently and anonymously. The advantage for the staff: less administrative work, more time for customer service.
Even if the proportion of cash payments in Germany is currently decreasing, modern payment systems simplify cash handling and therefore also have the potential to further increase the acceptance of cash payments – which in turn would have an impact on the minimum supply. Many offices, housing associations or libraries and museums have recognised this and therefore rely on payment stations such as the MaxiPay from CSG Systems. Our case study provides additional information and further practical examples.
