In October 2022, Prosegur CashMoney in physical form such as banknotes and coins. More acquired a majority stake in ChangeGroup, the third-largest foreign exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More retailer in the world. Founded in 1991, ChangeGroup has served over 50 million customers and operates over 100 bureaux de changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More and 300 ATMs in 37 cities worldwide.
Sacha Zackariya, CEO of ChangeGroup and author of Leading Travel and Tourism Retail. How Businesses Can Sustainably Capture New Profits in Shopping Tourists (London: Kogan Page, 2023) argues that cash is vital in international tourism.
The demand for cash as travel moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More has increased after the Covid-19 pandemic despite the growth in digital payments since “no one wants to be stranded without some cash in their wallet. No one wants to fall victim to cyber theft and online viruses when they have just managed to dodge real viruses” (Zackariya 2023: 2).
In February 2022, most Britons reported preferring to use cash on their last vacation abroad and plan to use cash on their next international vacation, according to an online survey for the Mintel 2022 Travel Money Report (see Graph 1). In his book, Zackariya says that tourists like to carry and pay with cash due to
“poor paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More infrastructure in their home or destination country, or they may prefer the anonymity of cash. Using cash also lessens the chances of credit cards being cloned, and the danger of identity theft. Many also prefer to hold cash to make quick purchases and for tipping […] Cash provides a degree of certainty in unsettling times; it works even if there is a power cut or cyber hack, which is reassuring for travellers” (Zackariya 2023: 87).
Graph 1. United Kingdom: Outbound Tourists’ Payment Preferences, February 2022
Note: Poll respondents = 857 internet users aged 18+ who have taken an overseas holiday in the past three years (blue) and 1,010 who plan to travel abroad within the next three years (orange). Source: CashEssentials, based on Kantar Profiles/Mintel, February 2022, for Mintel 2022 Travel Money Report in Zackariya (2023: 87). Used with permission.
In addition, service providers such as restaurants and shops prefer accepting cash “so that they don’t have to pay expensive card-processing fees and wait several days to be paid.” (Zackariya 2023: 87).
Service workers worldwide appreciate cash tips. Employees accrue taxes and card fees when customers pay gratuities with cards and often receive funds with substantial delays.
Last summer, the New York Times reported that some U.S. vacationers had difficulties paying with cash in Europe as service providers embraced digital payments.
Many customers, fed up with debit and credit cards’ foreign transaction fees, have signed up for multicurrency accounts offered by newcomers such as Revolut and Wise. However, users must remember that these services charge fees for currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More exchange and ATM withdrawals beyond certain limits.
“So make sure you accept cash! Don’t be fooled into thinking cashless payments will make you richer. All you are doing is denying yourself the ability to make a sale!” (Zackariya 2023: 3).
Zackariya recommends retailers accept cash and digital payments, as most foreign tourists carry cash and are more willing to spend these funds abroad: “Having cash in their wallet encourages customers to spend it in surrounding shops immediately” (Zackariya 2023: 53).
To restore London’s place as an attractive international destination, Zackariya hopes that the U.K. government reinstates tax-free shopping for foreign visitors to get cash refunds for their value-added tax (VAT) on their shopping.
To encourage tourists to spend money, retailers should
The book includes conversations with leaders in tourism and cash managementManagement and control of cash in circulation. More services to illustrate the importance of cash in the sector and contemporary societies at large: