• K. Scott

Cash Handling Vs. Digital Payments – The New Debate in A Coronavirus World

The economy is changing in a world that’s been affected by COVID-19 and one of the latest debates that have been taking the finance industry by storm is cash handling vs. digital payments. Digital currencies and digital payments have been in existence for years now but COVID-19 is reviving the argument over safety concerns related to cash and if paper currency is one of the primary things that’s responsible for  actually spreading coronavirus in the world.

Cash Use Not Expected to Decline Anytime Soon

Even though the spread of coronavirus has ignited concerns over cash usage in the United States, the use of cash will likely continue in 2020 and beyond.

Thanks to recent statistics from Fundera, we know that roughly 10 percent of all consumers in the world still prefer to make payments with cash but 88 percent of consumers have said that they still use cash “sometimes” for daily transactions with their cash transactions averaging about $22. Yes, the dollar and cash as a whole may continue to remain in circulation after coronavirus but other countries including South Korea and China are reportedly taking aggressive steps to eliminate paper currency in their states, and in some cases they are even burning it. Is cash safe from coronavirus? The answer to this question is yes, it remains safe to touch even during the COVID-19 outbreak because any risk that may be posed from touching cash isn’t greater than touching another surface like credit cards, handrails, or doorknobs. Keep in mind that even though cash is safe to touch, you should still be mindful to wash your hands after handling cash, just to be safe and do your part to stop the spread of the virus. Digital Payments and Remote Banking on The Rise With more people working hard to keep a “social distance” these days, and staying home due to COVIF-19 pandemic, the use of digital payments and remote banking is on the rise. This makes sense because it enables people to make payments while staying home and avoid contact with other people.  Besides digital payments and remote banking, ATM’s have enabled consumers to access cash more quickly and efficiently than they would be able to if they went to their local banks. In 2020, ATM’s are available almost everywhere, including in local grocery stores, so consumers can easily access their cash in a safe and secure environment without having to be concerned about their safety or security.

The use of bank apps has also been on the rise since most banks like Wells Fargo and Bank of America, to even smaller, rural banks, have their apps that offer consumers the ability to monitor their account balances and take care of their banking needs from any location that they can access the Internet.

Most banks have been encouraging their customer to use digital banking to “stop the spread’ because of the obvious fact that digital bank customers don’t have to interact with bank tellers or other human beings.

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