We often read stories in the news about how cash is a dying breed, but The Wall Street Journal published a story in its hard copy on December 2 claiming these reports are definitely premature.
Senior Editor, Vipal Monga states, “…the death of cash looks to be a long way off. Paper bills and coins remain the No. 1 choice for payments, used in 40% of all transactions in October 2012, according to the most recent study by Federal Reserve banks in Boston, Richmond and San Francisco. Debit cards were used in a quarter of all transactions and credit cards in 17%. Checks and all other electronic-payment techniques made up the rest.”
Monga also points out that with all the cash still in use, even financial institutions are beginning to outsource their cash handling, as Bank of America signed a groundbreaking outsourcing agreement with GardaWorld this time last year.
GardaWorld Cash Services President, Chris Jamroz says that Bank of America was able to “walk away from the burden of physical costs” as part of the deal. The benefits of outsourcing are numerous – banks reduce their real estate footprint, vaults are where their clients are, they have the confidence in maintaining transparency, plus the cost controls are tremendous.
“Having accepted that cash isn’t about to disappear, some companies are looking for ways to minimize the hassle and expense,” explains Monga.
If you subscribe to The Wall Street Journal and would like to read more, please visit http://online.wsj.com/articles/reports-of-the-death-of-cash-are-premature-1417480600.