Those of us actively participating in the next evolution of payments sometimes forget that for many, cash is still around and actually considered necessary. This article include some statistics on current cash circulation as cited by the US Treasury:
“Half of small transactions (less than $50) are made in cash. At the current rate of decline, cash will be a major form of payment for 200 years! So, anyone who says this year is the year is out to lunch. For fun, approximate daily circulation:
• 38 million bank notes
• 42 million coins
• $2776 per US resident
• 6% of US GDP (vs 3% in Canada)”
Just as ATMs did not replace all bank branches and as debit did not replace all checks, we only add to our options. Prior forms, particularly ubiquitous and anonymous cash, will stubbornly stick around.
Overview by Sarah Gratto, Director, Debit Advisory Service at Mercator Advisory Group
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