Innovation contributes to the efficiency of cash

The South African Reserve Bank’s (SARB) Cash Smart Strategy introduces a pioneering regulatory framework focused on affordable, accessible, and ethical cash. Key innovations include a national cash utility, white-label ATMs, and universal service obligations to prevent “cash deserts.”

A new study by the Deutsche Bundesbank reveals that cash and girocard remain the most cost-effective payment methods for German retailers. The study highlights how cash incurs lower per-transaction costs compared to card payments, though its cost as a percentage of turnover is higher. This comprehensive analysis underscores the enduring importance of cash in the retail sector, even as mobile and digital payments gain prominence.

The 2025 CashTech Innovation Awards recognize groundbreaking advancements to improve access to cash; acceptance of cash and the efficiency of the cash cycle. Winners include the Central Bank of Austria, Oesterreichische Nationalbank (OeNB) for its ‘ATMs for Austria’ initiative; Bankomat AB for the bold and comprehensive transformation of its cash logistics operations in Sweden, and Muney App for bridging digital transfers and cash to enhance efficiency and inclusion in the Latin American remittance market.

The introduction of a digital euro by the European Central Bank (ECB) aims to safeguard the role of public money and maintain trust in the euro. However, its success in mimicking the cash-like properties—such as anonymity, universal acceptance, and resilience—will depend on ensuring a functioning and robust cash ecosystem.

From Revolut’s ATMs in Spain to Lloyds’ PayPoint cash deposits, a new wave of CashTech is proving cash is evolving. By blending digital innovation with physical currency, fintechs and banks are ensuring cash remains accessible, secure, and relevant in an increasingly digital world.

While the media frequently report on ATM and bank closures in mature economies, the industry is simultaneously experiencing a surge of innovation. Driven by evolving needs of consumers, the ATM landscape is transforming to enhance accessibility, convenience, and security.

The CashTech Innovation Awards recognize innovations that enhance access to and acceptance of cash; as well as improve the overall efficiency of the cash cycle. CashTech is at the intersection of cash and technology. It brings together innovative companies that leverage new technologies to improve cash services.

A new white paper examines case studies and best practices that central banks, commercial banks, and other cash industry stakeholders can implement to enhance both the environmental sustainability and operational efficiency of the cash cycle.

Elsewhere on the Web provides updates and links to articles related to cash, money and payments curated on the web.

The Federal Reserve Bank of New York (FRBNY) has announced that it plans to transition its cash operations in East Rutherford, New Jersey (NJ) to a new next-generation cash services centre within the Second District.

Even if political and monetary reforms had a major impact during the second half of the 20th century, the main reason for issuing new banknote series or an upgrade has been the security enhancement of the notes. The constant efforts of the industry have provided good opportunities for this. The issuers can select between various substrates and use several different optically variable features to make the reproduction of the notes difficult.

As the banking sector continues to shut down branches and ATMs across Europe, cash automation solutions provide a significant opportunity for banks to partner with consumer businesses and become the agents of change of a rapidly transforming cash cycle.