Podcast: cash in the payments landscape

In some economies, electronic payments have almost completely replaced paper notes and coins, Sweden and Norway, as examples. But in others, such as Japan, despite high technology penetration, most transactions at point-of-sale continue to be in cash. 
 
Central Banking is joined by Nikki Strickland, marketing and strategy director at De La Rue, to discuss cash in the payments landscape. 
 

Cash is the most ubiquitous, and therefore most inclusive, method of payment available, Strickland says. From banknotes that include durable tactile recognition features to their essential role for those without access to bank accounts or smartphones, cash remains indispensable for financial inclusion. 

Cash is also a "competitive payments method in its own right", she says. It acts as a safeguard against power outages that may choke electronic payments, is a privacy protector and free for the end-user.

Strickland talks about how technology is improving analysis of the cash cycle and its distribution, as well as the interaction of cash with new payment methods. "We've seen mobile money agents, effectively acting like human ATMs at times to help with the distribution of cash," she says. 

Increased population and the effect of inflation on the value of cash are some of the factors Strickland identifies that will drive demand in the future. 

Index

0:07 Introduction

0:48 The role of cash in financial inclusion

3:24 Cash as a competitive payments method

6:43 The environmental impact of cash and electronic payments 

11:43 How technology within the cash cycle is evolving

15:24 Expected trends in cash use 

 

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