New crown epidemic: joys and concerns over sharp decline in cash payments in the UK-BBC News

In the digital age, more and more countries are entering the era of cashless transactions. Online payment, sliding cards, scan codes and contactless smart cards have become the norm for many people to consume and buy.

The outbreak of the new crown epidemic in the world in recent months has further promoted this cashless transaction. At the same time, it also means that the use of cash is declining rapidly, because people are concerned that cash and coins may carry the new coronavirus, increasing the chances of infection.

For example, in the past few weeks in the British city shutdown, the number of people using ATMs to withdraw money has decreased by 60%, although the number of people withdrawing has been increasing each time.

British experts say that as people switch to digital payment, the new crown epidemic will exacerbate the decline in the use of cash.

During the epidemic, online shopping increased, especially for buying food and groceries online.

In fact, even if there is no epidemic, more and more people have become accustomed to wire transfer payments, but British experts are concerned that the future of cash is at risk, especially before the UK is ready for this.

Cash users

British experts estimate that 20% of the British population still depends on cash payments. They mainly include:

• Part of the population living in rural communities is weak due to local broadband and mobile network connections;
• There are also people with physical or mental disabilities who have difficulty using digital payments;
• For debtors, the use of cash makes it easier to control expenses and budgets;
• For the elderly and people in a difficult or domestic violence environment, cash is their livelihood, and if they lose it, they will lose their independence;
• Those who do not have a bank account for various reasons;

Data from Link, the UK’s largest ATM network operator, shows that the number of weekly withdrawals in the UK is still approximately 11 million times, with a total value of £ 1 billion.

However, as many stores, restaurants, cafes and bars are closed and closed, the demand for withdrawals from people has decreased.

Viruses Reduce Cash Demand

According to a Link consumer survey, 75% said they used less cash, and 54% said they simply avoided using cash.

At the start of the New Crown Outbreak outbreak, there were reports that cash and coins could spread the virus.

Relevant Chinese government departments have also carried out organized disinfection activities on cash and paper money.

But the Bank of England and the World Health Organization emphasized that cash risk is not higher than other objects, and emphasized and reiterated the importance of frequent handwashing.

Despite this, 76% of respondents said they would use less cash in the next 6 months and switch to other payment methods or online purchases.

Half of the population in the UK already uses cashless payment methods, but the problem is that the 20% of the people mentioned above who mainly depend on cash for their lives. Many of these people belong to vulnerable groups.

British experts say that if the demand for cash is not high enough, it is difficult for cash infrastructure providers, such as delivery and ATMs, to survive. It can lead to the collapse of the cash infrastructure before people are ready.

Your computer does not support the playback of multimedia materials.

It’s very early?

Of course, some experts believe that it is difficult to draw this conclusion now. Smith, the British cash transport company Pivotal, believes that the true impact of the new crown epidemic can only be judged after all companies reopen.

He believes that several important reasons why the epidemic will not change people’s use of cash include convenience and a lack of bank accounts.

BBC personal finance reporter Simon Gomperts said that only in the future will people know if this new crown crisis will become an event that ends the history of people and cash. Because many people have a lingering fear of cash, they think it is something others have touched on.

Even those merchants who did not like to accept credit cards in the past also changed their attitudes and accepted credit transfers easily.

Gumpaz said the previous investigation found that during the uncertain period of the epidemic, some people have been holding their money tighter, perhaps because they cannot leave their homes to withdraw cash.

However, there is no doubt that the new corona virus has also accelerated people’s conversion to electronic payments.