“Cash still has one important advantage—a sense of control and anonymity that many other payment forms cannot offer.” – The Federal Reserve Bank of Cleveland
If you take a look at the Value and Volume by Payment Type chart and Volume of Cash in Circulation, you will see that cash still has the highest volume – and is steadily increasing. According to the Federal Reserve Board of Governors, volume of cash in circulation has more than doubled (from 13.5 billion to 31.3 billion) in the past 20 years, and the value of that cash has more than tripled (from $268.2 billion to $1.03 trillion). This puts the volume of cash transactions at 49 percent.
In some minority and low-income communities, whose residents are disproportionately unbanked, cash is used exclusively. In fact, a recent FDIC study shows that 25.6 percent of all U.S. households (30 million) are unbanked or under-banked. (Federal Reserve Bank of Cleveland)
Despite the introduction of mobile wallets and mobile payments, several analysts have stated that there will not be much adoption until 2020.
- In a non-random sample of 1,021 technology stakeholders and critics, 65 percent responded that they didn’t believe mobile payments would gain traction any time soon.
- The remaining respondents said they simply didn’t trust mobile banking/payments.
Due to security issues and consumers’ lack of trust with smart phone banking, cash isn’t going away any time soon. Analysts reported that only 2 to 3 percent of smart phones even have the Near Field Communications technology that allows mobile payments to occur. Also, businesses are not convinced that such technology will become the industry standard in the future. Lack of knowledge on these new methods has created a very long learning curve for this technology.
With that being said and based on recent statistics, this is great news for your business. There is a substantial amount of cash in circulation and we hope you will take the necessary precautions in protecting your business. Be sure to secure your cash deposits and educate your employees on proper procedures.
With the holiday season approaching, your company is in need of quality security.
Dunbar will help you minimize cash losses, improve controls and accountability, enhance security and safety, and free your employees to focus on other critical business areas.
“Securely Managing Your Cash and Valuables”
If you would like to learn more about what Dunbar can do for you, please contact us by calling 1.800.888.2129 or visit our website today!
Dunbar specializes in working with organizations in a vast array of industries for the safeguarding of valuables. We deliver the most technologically-advanced integrated cash management, logistics, and loss prevention solutions available through a global array of innovative products and services tailored to meet your specific needs.
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