Consumers stick to cash
Research company, Ovum, has predicted that cash is to remain the primary method of retail payment by volume in the coming years.
Ovum senior analyst, Jaroslaw Knapik explains that while there are continuing predictions about other forms of payment taking over from cash, the majority of retail transactions are still being undertaken with cash.
The amount of cash in circulation is constantly on the rise. According to the European Central Bank, the number of banknotes from the Eurozone is rising by approximately 9% per year. There are also over 40% more US dollar bills available compared to the beginning of the millennium.
Given the fact that most cash is being distributed by ATMs, this channel is still expected to grow. Asia Pacific is the fastest growing market and accounts for over 40% of global ATM hardware shipments,” said Knapik.
This research puts pressure on banking systems, as Ovum believes that banks will need to maintain or expand their ATM channels to keep up with this trend.