Cash Dethroned by Cards: Print Preview
- Debit cards and credit cards overtake cash at the retail point of sale.
- Cash is steadily used only for smaller value transactions.
- Implications for credit unions discussed.
In what may have significant implications for ATM deployment and other aspects of credit union operations, a study from Javelin Strategy and Research has found that debit and credit cards have overtaken cash for the bulk of sales volume at the retail point of sale.
“Cash is one of the most successful human technologies of all time,” said Mike Lee, CEO of the ATM Industry Association, an international trade group serving the ATM industry. “And today it represents 84% of all global transactions. Unfortunately, some of the global card schemes, in particular Visa, have aggressively declared war on cash in order to increase the sale of their plastic cards,” Lee said. “We believe in the peaceful co-existence of cash, cards and other payments, such as online and mobile transactions. We are calling for an end to this war in payments. Let’s get human about this issue.”
Andrew Schrage, co-owner of Money Crashers Personal Finance, an online publication that covers many aspects of finance and financial services, thought it unlikely that cash would be able to completely avoid the erosion of its influence by cards. He noted that the percentage of things that people have to use cash to purchase diminishes steadily, but he also thought the trend represented more of a trickle of change than a torrent.