The tangibility of cashMoney in physical form such as banknotes and coins. More makes it the ideal payment methodSee Payment instrument. More to see the evolution of one’s budget, real-time. Studies have found that there is an emotional attachment to it. In fact, there is a feeling of psychological pain when the user parts from cash, something that doesn’t occur when using alternative paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods. But cash’s benefits aren’t limited to the emotional attachment. Cash can contribute to consumer health by decreasing alcohol and tobacco consumption and fighting impulsive shopping behaviors and obesity. It can also contribute to education and better management of one’s finances, at home or abroad.
One of cash’s greatest attributes is that it is free for the consumer, but it also costs less for merchants. For the consumer, using cash incurs no costs whatsoever while the use of a card or mobile payment are often accompanied by a fee, not to mention if the payment is made abroad. For the merchant, cash does lead to some management and logisticsThe term originates from military language and refers to the movement and provisioning of troops at war. In today’s business vocabulary, it refers to the management in particular, the transportation, storage and distribution of finished goods. More costs but these are far less than the costs incurred when using Point of Sale (POSAbbreviation for “point of sale”. See Point-of-Sale terminal. More) terminals. It is no surprise that the race to get the largest pieceIn plural, it is commonly used as synonym for units of banknotes and coins. More of the pie in the payments landscape has almost become a war: a war on cashThe expression refers to various policies by governments and campaigns run by other stakeholders, including providers of alternative payment instruments, aimed at reducing or at abolishing the use of cash altogether. This includes for instance the withdrawal of high‐denomination banknotes or restrictions on cash transactions as well as spreading misinformation on the usage and properties of cash. More but also on other payment tools. In fact, in 2015 alone, payments generated $1.1 trillion, nearly 29% of global banking revenues. This number is expected to rise to $2 trillion by 2025!