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new study by financial analysts
AskTraders.com has revealed consumer attitudes to cash as British businesses brace for the post-Covid “new normal”.
Non-essential retailers and hospitality businesses will reopen following the coronavirus lockdown on the 4th July. According to the study:
- 75% of consumers believe using cash leaves them vulnerable to germs and infection
- 63% of consumers would not leave a tip if they couldn’t do so using cash
- 8% of consumers have started investing in cryptocurrency during the pandemic
ATM locations have already started reopening as a means of giving access to cash, though this latest study suggests that a cashless alternative will be preferred by the majority of the population.
Speaking of the study,
Nigel Frith, senior financial analyst at AskTraders.com, said:
“With good reason people do not like using cash anymore. We all agree it carries many germs and now with Covid-19, it is a big risk.
“Over the last 12 months, there has been a huge rise in Bitcoin ATMs and there are more and more retail outlets accepting BTC (albeit that the growth of this slowed a lot during the BTC crash). We are facing a very uncertain future for Fiat currencies, with so many governments propping up their economies with a form of quantitative easing, and inflation is likely to surge and the value of many Fiat currencies is likely to go down.
“I believe that BTC is not only increasing as a potential safe haven (as crazy as that sounds) but as a potential replacement globally if Fiats go into meltdown. This has always been the promise of the benefits of a decentralised Fiat currency.
“The USD has an especially big risk with a) oil prices and b) the warning shots Trump is making over the $1tr debt repayment to China. If the USA defaults on this then the USA credit rating will be hurt and the value of the dollar will plummet.”
The study also revealed that one in four consumers has been short changed by at least £1 in the past 12 months - equating to £13 million in lost cash through incorrect calculations that would be saved in a cashless society.
Clare Bailey, independent retail analyst, suggests there are broader benefits to going cashless from which those in the retail sector can benefit:
“Cashless society is something we've been nudging toward for some time, but a lot of retailers have previously assumed that taking card payments is more expensive. But what they weren't considering is the cost of using cash; the cost of someone having to cash up the till, get the money to the bank, keep a supply of change, plus the risks around taking the physical cash to the bank – all of these things are a major headache, and represent the true cost of cash in business.
“In these ways, cash actually leaves retailers more vulnerable and incurs costs. There's no reason why all independent retailers shouldn't take all forms of contactless payment.
“If we think of it another way, the members of society who want to stick with cash, typically, tend to be a bit older, and they are actually more vulnerable themselves, so it may be that the cashless effects of the pandemic will change the paradigm around their attitude to cash.
“We can expect consumers to be much more mindful of their own safety even after lockdown is lifted so this insight into the worries of consumers around using cash is important.”
The preferred method of cashless payment according to the study is still bank cards, though a growing number of consumers are using mobile phones and smart watches.
