Coronavirus

Cash remains dominant in Mexico after the Covid-19 pandemic, despite the government’s promotion of digital payments and a boom in fintech solutions, per the latest national survey on financial inclusion.

A survey by the Mexican central bank shows that transactional demand for cash declined during the pandemic. Still, most respondents choose cash as their preferred means of payment.

In 2020, many headlines were predicting the end of cash, amidst a sharp decline in cash transactions. A year later, many recognise that cash plays an essential social and economic role and is an anchor to the monetary and financial system.

Cash in circulation grew 30.33% in Mexico during the Covid-19 pandemic, driven by large-denomination banknotes. ATM transactions declined in volume but rose an impressive 15.9% in value. Mexico’s cash infrastructure has expanded despite the pandemic.

In Singapore, currency in circulation has grown by 9.5%, despite the Covid-19 pandemic. Food merchants prefer cash, despite the official endorsement of digital payments. Several CashTech solutions accommodate Singaporeans’ preference for cash.

The U.K. government has endorsed the accelerated adoption of contactless payments during the Covid-19 pandemic, despite risks of fraud and contradicting its plans to ensure people have access to cash.

As the Covid-19 pandemic further reduces the U.K.’s ATM network, several pilots are underway to protect access to cash for consumers and small businesses.

Restaurant and bar workers in Spain have long relied on cash tips to complement their wages. The acceleration of digital payments during the pandemic threatens their economic livelihoods. #Cashtipsonly.

Cash in circulation grew by 5% in value in 2020. The growth is due exclusively to the increased demand for the 10,000 yen note, signaling as in many other countries the role of cash as a safe haven in times of crisis.

Cash Transfers are supporting Madagascar’s poorest and most vulnerable citizens during the Pandemic, but there are unintended consequences.

A year after the Covid-19 pandemic spread globally, there is more data available to determine its impact on the use of cash in U.S. retail payments. The public has not stopped using cash, but some retailers have stopped accepting it altogether, threatening the economic well-being of large, vulnerable segments of U.S. consumers who use cash as their main means of payment.

Using data from a continuous household consumption survey, economists Renuka Sane and Ajay Shah analyse both the levels of household borrowing as well as the sources of lending. They conclude that fewer households borrow but more rely on family and friends as well as shops.