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Cash has a bright future ahead

Categories : Cash is trust
July 27, 2016
Tags : Demand, Distrust, Privacy and anonymity, Regulation
Cash demand is rising in many countries. In Germany and Indonesia, people consider cash safer than electronic payments mainly because of privacy concerns.
Communication Team / Equipo de Comunicación

Although electronic means of payment, are increasingly challenging cash, many people still prefer to pay with paper money, considering it more reliable and safer than latest technologies. The use of cash is even rising in many countries of the world, such as Indonesia and Germany.

In Indonesia, the growth in cash demand is mainly due to people’s distrust in digital transactions. Moreover, new regulations introduced by the government now require from providers to submit transaction details to tax authorities, causing customers to worry about their privacy. Last April, the Central Bank reported a 4% decrease in credit card transaction values, the first drop since 2010.

Privacy concerns also seem to be the main reason consumers reject electronic payments in Germany. A recent study led by the Bundesbank showed that almost 79% of payments are made in cash. What is more surprising, two thirds of people aged 14 to 24 said that they prefer to pay with real banknotes and coins – the age group that usually welcomes new technologies with great enthusiasm.

Other reasons stated for choosing cash over alternative payments were that it is easier to control one’s finances when one feels the money in his/her hands, and also that by using cash, one is certain that the payment is accepted anywhere.

To read the original article, click here.

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