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Cash logistics market records sharp increase

Categories : Costs of cash versus costs of electronic payment instruments, Innovation contributes to the efficiency of cash
July 12, 2017
Fear of cyberattacks and a sharp increase in outsourced cash management services by banks has made the cash logistics market significantly grow in recent years.
Communication Team / Equipo de Comunicación

According to a new report published by ResearchMoz – Global Cash Logistics Market Size, Status and Forecast 2022 – the global cash logistics market is expanding rapidly and should continue to grow over the coming years.

Many factors can be cited to explain the rising demand for cash logistics management. First, the demand for security vaults rose significantly due to the numerous cyberattacks that hit financial institutions and central banks in recent years. Indeed, hackers’ exploits led many consumers to mistrust the banking system and look for alternatives to store their money. Moreover, the sector has been boosted by the arrival of innovative devices such as electronic safes and password protected locks. 

Furthermore, an increasing number of banks and financial institutions have started outsourcing their cash management system, including ATMs services, to third-party firms to reduce operational risks related to transactions made via cash machines. The cash-in-transit segment – which comprises secure transfer of currency and bullions for central banks – also recorded a significant rise in 2016 and remains thus the leading service in the cash logistics market.

The demand for cash logistics rose especially in Europe in 2016. In the coming years, growth is expected to come from North America and the Asia Pacific region, as governments are taking measures to promote security in this area. Finally, the market has attracted an increasing number of new players, making it particularly competitive.

To read the original article, please click here.

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