However much technologists plan and build the new ‘perfect’ payment systems to kill the old fashioned payment systems. The reality is that cash and cheques cannot be killed directly. They will only die through lack of use. 

Killing cash is not happening

In his outstanding blog in Finextra 18th March, ‘How To Really Kill Cash’ - a must read - he quoted a series of stats as to why it has not happened, including:

• 85% of world’s transactions happen in cash. Source: Business Insider
• US currency in circulation is growing, according to The Wall Street Journal.

In addition, he believes that the “war on cash” brigade has caused the current state of affairsshowing how the technologists made major mistakes, e.g. saying cash is costly. (In the UK the BRC research shows it is the cheapest at point of sale.) 

He then writes “all is not lost”  and the believes that “Finserv can kill cash in many areas by reorienting its approach.” Although, his overall conclusion is that, “While I doubt if cash will ever disappear totally - even after 190 years - I strongly believe that the above tactics can be the low hanging fruits for replacing cash by electronic payments.”

CTMfile is sure he is correct in his conclusion because governments won’t allow it. Indeed, they are putting in barriers to stop it happening.

Sweden plans to protect cash access

In Sweden, The Riksbank has called for a legal requirement to be introduced which would place a duty on banks to provide cash service as a basic feature of payment accounts. Signed by Stefan Ingves, the Riksbank Governor, the letter states that the banks have reduced their cash handling services too fast, resulting in a lack of cash services in less populated areas in particular, but for the public in general.

Not surprisingly, the ATM Industry Association welcomed this statement, with Patrick Nordwall, CEO of ATM deployer re:cash, saying “We welcome this announcement because we believe it is necessary for the Riksbank to take a stand on the issue of cash in society. The state has the responsibility for maintaining the smooth functioning of national cash handling. This is vital, particularly in relation to financial inclusion for all Swedes”.

UK government protects the cheque

In July 2011, the UK The Payments Council decided that it would get rid of cheques in 2018, However, after widespread criticism from MPs and charities, it decided they will be kept "as long as customers need them".

The decision was welcomed by charities and goverment. Andrew Tyrie, chairman of the Treasury Committee, welcomed the Payments Council's decision, saying, "At last the Payments Council is concentrating on the right thing: making the existing cheque system faster and cheaper to operate. This will benefit both banks and customers," he said.

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CTMfile take: The “as long as customers need them” phrase will kill any complete removal of either cash or cheques. No government in a democracy will be able to resist. The only solution for corporates will be to use omnichannel payment service providers to accept all the main types of payment system. The future is bright for the multi-payment system providers.