Cash is a safe choice of payment during and after the COVID-19 lockdown, the trade body the British Security Industry Association (BSIA) has set out in a report.
As the association that covers the UK’s cash-in-transit industry, the BSIA has produced a report Cash is a SAFE Choice, evidence-based research from the British Retail Consortium, the World Health Organisation, Which?, Association of Convenience Stores, UK Finance and members of the cash industry. A widespread approach to cash on the high street of avoiding it as a transactional tool lacks credibility, but also takes away choice from the consumer, poses a serious threat to the cash-in-transit industry, and the recovery of the UK economy, the report says.
The report discusses that the UK still comprehensively uses cash as a method of transaction and that, although there has been a decrease for some years, it is still necessary for some and a choice for everyone who wishes to get access to it. As for the COVID-19 pandemic, there is little or any evidence that using cash can spread coronavirus.
Sarah Staff, Head of SaferCash at the BSIA said: “Over two million adults remain unbanked in Britain, some by choice, some by access. An estimated 1.9 million rely on cash for nearly every transaction they make, and eight million would struggle in a cashless society. Our Cash is a SAFE Choice report shows we are not yet – if ever – ready to be ‘cashless’, as many media reports are referencing.
“The public are being swayed with constant marketing and reminders to pay by card, ditch cash, shop online and keep things digital, and a great deal of businesses and retailers are simply refusing to accept cash without explaining why, which promotes fear and incorrect perceptions. Taking away cash from communities who not only rely on cash and the many who use cash as alternative payment is taking away choice of a valid transactional method, and we are calling on all retailers and local authorities to pull back from taking hard currency out of the equation and to put in to place information that support as relevant tender.”
The report argues that cash minimises risk as digital accounts are vulnerable to cybercrime, fraud, and power outages; it protects the privacy of the user and it is resilient – during a crisis we trust real currency – cash is a top recommended emergency item. UK Chancellor Rishi Sunak promised in March to create legislation to protect access to cash. Cash also keeps growing as the demand increases globally both in absolute value and relative to GDP.
Gareth Skinner, Chairman of the BSIA’s Cash-in-transit section, said: “The negative impacts are not just to the cash industry, but to the whole UK economy, which is one of the main reasons the BSIA is highlighting the importance of cash usage. This needs to be looked at now and not wait for the industry to get past the point of return. Retailers and local authorities should set the example the public need, to ensure there are no negative repercussions. The public and consumers will then lead by example.”
Mike Reddington, Chief Executive, BSIA, said: “The Cash is a SAFE Choice report clearly demonstrates that there is still an appetite for the general public to use cash as an alternative method of paying, even during the COVID-19 crisis. With such a body of evidence that clearly contradicts the current misconceptions, we believe the death of cash is completely unfounded, exaggerated and, more importantly detrimental to a great many people and businesses which, as we try to recover from the aftershocks of COVID-19, misleading and incredibly damaging to the cash industry and the economy as a whole.”
Cash is a SAFE Choice, 14 pages, is available from the BSIA website.
Photo by Mark Rowe; G4S cash in transit van, west London.
