Why More Cities Are Becoming Cash-Light Rather Than Cashless

As the world evolves, new methods of payment evolve alongside them. Cash grew outdated with the introduction of physical, then digital cards, alongside QR code payments. But cash isn’t obsolete. While cash transactions are rarer, many establishments around the world do still accept physical tender as a compliment to digital options. But why? If cash is so obsolete, why do cities and merchants around the world still accept it? This guide explores why. 

The access door 

Unlike digital forms of payment, cash requires no documentation for any transactions. It is possible for someone to simply walk in with a few bills, buy something with them, and walk out. Completely anonymous. Depending on several factors, such as location, mobile service, economic circumstances, cash out liquidity, and other factors, can all be factors that prevent an individual from using a digital bank account. Cash serves as an absolute–unattached, usable by anyone. Countries like Germany and Japan maintain a high level of cash usage, reflecting their respect for financial anonymity. 

Merchant maths 

Merchants, especially those on smaller margins, are much more likely to accept (or even demand) cash. This is because card readers often charge a small fee to the merchant for every transaction they make. Low margins and a card payment could turn a profitable transaction into a loss making one. While merchants on a higher margin will feel more comfortable accepting card, some merchants, especially in the F&B industry, struggle more due to card payments.  

Fortunately for low-margin merchants, a new method of payment is growing. QR codes are growing in popularity, especially in Asia. Unlike traditional forms of digital payment, QR codes require minimal hardware and take minimal (sometimes even zero) fees on transactions. QR codes ensure that merchants are able to take digital payments while simultaneously keeping their business afloat. 

The legal mandate 

For some cities, the decision to accept cash is less of a suggestion and more of an ironclad rule. Some areas of the world have deigned the ability to spend cash as less of a privilege and more or a right. Across Europe, countries like Spain, France, Ireland, Hungary, Belgium, and Austria all have some form of mandate that merchants are required to accept cash as a form of payment. Even beyond Europe, the cash mandate is spreading. Several states in the U.S. require merchants to accept cash, and China, widely known for its digital payment options, has also recently mandated cash acceptance, and prohibited any form of refusal or otherwise discriminatory measures. 

The best way to pay 

If some cities are becoming cash-light, others cashless, and others cash-heavy, what is the best way to pay? Luckily for iFAST Global Bank customers, it doesn’t really matter. When the situation calls for a card, the iFAST Multi-Currency debit card allows customers to pay in 11 different currencies, ensuring that your journey isn’t hampered by exchange fees and bad FX rates*. If the situation calls for cash, iFAST Global Bank allows for up to £500 (or foreign currency equivalent) a day from any ATM around the world, fee free**. Even if a QR code is the best option for payment, iFAST Global Bank has Worldwide Scan & Pay, allowing users to make fee-free cross-currency payments simply by scanning participating QR codes***. 

No matter where you are, or what you’re buying, iFAST Global Bank makes sure you always have a way to pay. 

*Available to UK Residents only, T&Cs Apply. 
**Some local ATM operators may apply their own service charges. 
*** Scan & Pay is for cross-currency payments only. Availability of QR payments may vary by country and merchant. T&Cs apply. 

The world pays differently 

Payments around the world are not universal. A restaurant on the coast of England may request cash to settle the bill. A patisserie in Paris may ask for a card. A Chinese street vendor may motion to a QR code. All of those require a different solution. All of those solutions are provided by iFAST Global Bank. No matter if it’s a conventional card payment, a quick cash deal, or a QR code scan, iFAST Global Bank ensures that you’ll be able to settle your bill. No more worrying about if an establishment will accept your payment, because you’re already prepared to pay their way.