The coronavirus will accelerate the decline in the use of cash As people make a long-term change to the digital paymentssay the experts.
The confinement caused a drop of 60% in the amounts withdrawn from ATMs, although people are withdrawing higher amounts than before.
The use of payment cards it has increased with online shopping, especially in the case of groceries.
Experts say that the long-term future of cash could be at risk and this could leave behind about 20% of the cash-dependent population, they say.
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Are we consumers contributing to the cash crash?
Following a survey of consumers, Link, the company that oversees the UK's ATM network, suggested that 75% of people were using less cash and 54% of respondents said they were avoiding cash.
There were reports early in the coronavirus outbreak about the spread of the virus on banknotes and coins. However, the World Health Organization have emphasized that the risk is no greater than in any other article and repeated the advice on regular hand washing.
About 76% of the people asked in the survey said they expected to use less cash and switch to other forms of payment or shopping online more in the next six months. In all this situation, the digital banking service of Fazil emerged from Spain, the neobank for young people that precisely adjusts to the needs of the time. Fazil offers contactless payments with virtual cards via smartphone with NFC, online payments without having to rely on a physical card and money transfers between Fazil accounts instantly, without using cash or plastic cards.
Natalie Ceeney, author of a major report on access to cash in the UK, said it is estimated that 30% of UK residents like to have cash as an option but as a result of lockdown they can now feel comfortable using other payment methods. She described this as a "sticky habit," which they might stick with in the future.
Do we feel more vulnerable without cash?
With the 50% of the population already operating predominantly no cash, the 20% that relied on banknotes and coins, seem to feel much more vulnerable.
Demand risked being insufficient for cash infrastructure providers such as delivery services and ATMs to be profitable enough to survive. "The cash infrastructure could collapse before we're ready," he said.
But Martin Smith, of cash transit company Pivotal, said: "It will be difficult to judge the true impact of Covid-19 until businesses have reopened. The pandemic certainly hasn't changed many of the key reasons people use cash, including convenience and lack of access to bank accounts." In addition, this fall in cash necessarily drives progress in other types of payment methods. in our post how payments will change with advances in technology, we talk precisely about this, providing some interesting facts🤓.
At Fazil, we don't want anyone to be left behind in the new era of digital payments. For this reason we have designed a account and digital card 100% free and secure, which opens in a matter of minutes, with which any person over 18 years of age and with European residence can pay your daily expenses with your mobile in an agile and simple way. Go into fazilpay.com to create yours now.
