With the digitization of the financial sector, cash would be in the midst of its last hours. Studies show that mobile money is gaining ground.
Is the payment by cash really falling into oblivion?
Today, 50% of payment transactions are made without contact. By 2020, this figure could reach 70%. According to a study carried out by Ipsos and published last April, Europeans are ready to give up cash for bank cards and payments on smartphones. Fintechs with their mobile applications are attracting more and more consumers looking for security and speed.
What are their strengths? More secure, less expensive and above all simple to use, crypto coins have the wind in their sails. Cyril Chiche, co-founder of the mobile payment application "Lydia" questioned on Radio Brunet is convinced of the disappearance of banknotes soon, considered outdated in terms of cost, practicality and security. "The switch is inevitable, because it's generational and it will go through smartphones," he says.
Countries such as Denmark, Sweden, China and Japan are gradually eliminating the liquid. For example, many Swedish bars and restaurants only accept payment cards. In the land of the rising sun, it is possible to make payments via its smartphone. Better Visa recently issued a ring whose purpose is to promote contactless payment.
The end of cash: a windfall for consumers?
As a result of the numerous terrorist attacks of recent years, the State has encouraged 100% digitization of payment methods. And for good reason. An electronic payment can trace all the financial transactions carried out by the consumer. The risk of fraud, the financing of weapons and the laundering of money are therefore limited, thanks in particular to cash settlements with a ceiling of € 1,000.
In addition, fintechs and cryptomonnaies make it possible to put all consumers on an equal footing, without distinction of origin or income. This is why banks and financial institutions have multiplied partnerships with young start-ups for their clients.
But removing cash could harm consumers. Indeed, in terms of saving, digital money would allow the state to apply a negative rate. Which means that the saver will lose money every year.
A digitization that is not unanimous
100% digitization does not just emulate. Proof, payment by cash remains the preferred means of payment in countries favorable to Fintechs such as Germany, the United States, the United Kingdom and France, as shown by the study carried out by Harris Poll on behalf of Of Blumberg Capital. In Germany, 75% of consumers still use cash to pay their daily expenses.
Another study by CPoR Devises, the first speaker on the manual exchange market, says that 85% of the world's consumers prefer cash to crypto currencies. In Europe, the ECB says that 60% of payments are made with cash. MasterCard for its part revealed that the cash payment reached $ 1400 billion last year.
Why this consumer loyalty to cash? By paying cash, the risk of cybercrime is totally eliminated. Nevertheless, above all, the client remains anonymous and private. That's not all, cash makes it possible to evaluate its expenses. Not to mention the fees saved on the use of payment cards, especially when traveling abroad
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