G4S – Europe cash Report 2016: the sentiment of stakeholders seems to move from „war on cash” to „the world cannot do without cash”

In a report on cash use across 28 European countries, cash management and transportation giant G4S says that the volume of notes and coins in circulation has increased 13% per annum since 2002. Cash now makes up 60% of all payment transactions, while ATM withdrawals increased 14.6% between 2009 and 2014. However, in eight European countries – including the UK, Netherlands, Sweden and France – electronic payments now make up a greater proportion of transactions than cash.

Graham Levinsohn regional CEO, G4S, says: „What we are experiencing is a fundamental transition in the use of cash across Europe. European consumers and businesses will continue to use cash as part of a multi-payment economy. But we need to modernise how they can use it.”

Key stakeholders seem to embrace this point of view as the anti-cash sentiment (“War on cash”) seems to have changed to a more open viewpoint: “The world cannot do without cash”. This leads to a more balanced debate on how to best organise payments in general (both electronic and cash payments included) to the benefit of our society.

Cash represents 60% of all payment transactions in the EU28 and it is by far the largest payment instrument in terms of volume; when limited to a C2C or C2B environment, where cash is commonly most used, this percentage would be even higher. In 20 out of 28 countries cash represents over 50% of all payment transactions, and in 26 out of 28 cash is the largest payment instrument in terms of volume.

The report finds that the volume of cash transactions across Europe continues to increase, having previously doubled every ten years. Concurrently the proportion of all payments made by cash has fallen, with 40% of payments across the EU now made by card, electronic and digital payments.

In addition:

. The volume of cash in circulation has increased 11% per annum up to 2015 with cash now making up 60% of all payment transactions

. ATM withdrawals, which are a good indicator of cash spending, increased 14.6% between 2009- 2014, representing an increase in value of €2.188 bn

. In eight European countries, non-cash payments now make up a greater proportion of transactions than cash

. The total volume of non-cash payments has increased to 102.3 billion transactions

Besides establishing what the current payment landscape looks like in Europe and what the position of cash is in that landscape, one of the central questions in this report was what the future position of cash would or could be in the European payment landscape. „…it is expected that cash will remain a valued and essential payment instrument in the European marketplace and that further integration on a European level is likely, yet limited. Adding more countries to the euro area will obviously further standardise Europe when it comes to cash, but cash logistics and the organisation thereof will most likely remain a national sovereignty.”

For more details follow the link Europe Cash Report  2016