Is cash about to disappear?
With the increasing variety of payment solutions, more than half of Belgians (56%) are worried by the idea of no longer being able to use cash. This figure comes from a Profacts survey commissioned by BNP Paribas Fortis. It’s worth noting that this is also a concern for young people aged between 18 and 29. So it’s not just the older generation wondering whether we’re inevitably moving towards a cashless society.
Electronic payments on the rise
“There’s no doubt that cash is playing a smaller role in our economy,” said Michael Boedts, head of the Cards and Digital Payments department at BNP Paribas Fortis. “Since the first Bancontact and MisterCash cards were introduced, the number of electronic payments has been rising every year. And the coronavirus crisis has led to a sharp increase in the proportion of payments being made using electronic and contactless methods in stores. Also, because we’re buying more online, the number of online payments has also increased.”
Michael expects the proportion of payments made electronically and online to continue rising. “Once consumers get used to electronic payments, they don’t go back to their old ways. The shift towards electronic payments has been a clear trend in recent years, one that Covid-19 has only reinforced.”
Living without cash
That shift is accelerating because electronic payments are becoming increasingly accessible. “New, more practical solutions are constantly being developed and in-store payment terminals have become cheaper. Soon, all you’ll need to do is hold your card in front of a smartphone: there won’t even be any need for a special terminal. And sending money to a friend is very easy using Payconiq. So we’ve probably reached the point where anyone who wants to can live without cash.”
However, more than half of Belgians don’t really like the idea of a cashless future. Michael Boedts understands this, and has some words of reassurance. “At BNP Paribas Fortis, we want to satisfy all our customers. For people who want to pay electronically, we offer cashless solutions that are secure, practical and innovative. For those who prefer cash, we are of course continuing to serve them and we’re trying to help them make the shift by showing that not only are cashless methods more secure and practical, but they’re also better for the planet.”
Cash still accessible
Because we’re paying less and less in cash, we’re also making fewer cash withdrawals. “However, BNP Paribas Fortis will make sure that everyone still has a cashpoint near where they live,” confirms Michael Boedts. “We’re working with three other banks to combine our cashpoints into a single network accessible to all, regardless of which bank you use. This means there will always be somewhere you can withdraw cash within a 5km radius of your home.”
So cash is not about to disappear completely any time soon. But the use of cash will continue to decline because there are alternative solutions that are cheaper, more secure and more sustainable.