Does The Covid-19 Pandemic Spell The End For Cash?

Jason Thomas, CEO at Tappit

With the Covid-19 pandemic causing events globally to be paused or cancelled, organisers and decision-makers must look to the future and plan for ways that such events can be hosted without facilitating the spread of the virus.

Cash is increasingly being regarded as a major risk in terms of disease transmission; reports have found China has been washing and destroying infected banknotes, and banks in the US are rumoured to have quarantined dollars suspected of being brought in from infected countries. Worldwide, business leaders are rethinking the role cash plays in monetary transactions because of the close hand-to-hand contact involved.

The spread of internet banking, widespread internet access and the growth of smartphone usage have all led to a dip in the use of cash in many countries. The Coronavirus pandemic, however, will act to fast-forward this behavioural shift around payments, since cashless technologies are no longer merely a case of convenience, but increasingly, a matter of physical safety.

Dirty Money

All cash is in fact quite literally ‘dirty money’; data finds the flu virus stays alive and infectious on banknotes for nearly three weeks, and a coin usually has more germs on it than a toilet seat. While it is not yet known how long Covid-19 can survive on surfaces, there is no doubt cash transactions risk passing on the virus. The risk is compounded by the way that cash payment processes are usually slow, with users often queuing to pay, while disease can also be passed on via PIN terminals.

Consequently, event organisers, brands and teams are considering ways of holding events with minimal risks during this difficult time. While implementing safe distances between people and providing hand-washing facilities will be key, the use of cash in payment methods will crucially need to be rethought.

Indeed, spending limits have already been increased from £30 to £40, pointing to growing worries about payment processes and the risks involved. As well as this, several companies have banned cash transactions, and no doubt other retailers will soon make similar decisions. The events and hospitality sector will also need to replicate such tactics if people are to feel safe when attending events.

Solving The Cash Conundrum

The coronavirus crisis is exacerbating consumers’ transition to contactless payment types, and technologies are available which can allow events to cut cash entirely.

Contactless is a route forward here, where credit and debit cards, as well as smartphones or other mobile devices, can be utilised to facilitate payments using WiFi and a reader at a point of sale terminal. Such methods cut down the length of the payment process, while also eliminating the danger of hand-to-hand transmission of disease through the exchanging of cash.

Nonetheless, cards can still carry disease; credit and debit cards can maintain live germs on their surfaces for lengthy periods of time, while cards and devices will also by necessity come into contact with readers and therefore other cards at point of sale terminals.

Another problem is the way that it is the banks and credit card companies who harvest the data and insights around every purchase, and not the brands or event organisers.

Another method of avoiding cash involves using cashless technologies. Contact payment wristbands, for example, enable payment to take place with much less friction, since people have no need to extract money or cards from wallets or pockets. Queues are reduced as a result, and transactions on average are 80% faster, while individual spending tends to increase. Users will be in queues for much shorter amounts of time, meaning purchases are less risky and more efficient.

In addition, cashless means no ticket or credit card exchange occurs, and there is no use of PIN terminals. As such, payments can be carried out at a safer distance, improving the safety of both event hosts and event attendees.

Cashless also has the additional benefit of providing brands and events with data around spending habits and preferences, allowing decision-makers to gain insights into everything from most popular purchasing times, to preferred drinks. These technologies enable one to learn, not merely who the ticket purchaser was, but also the in-depth profile of the person who attends the event.

It is evident that Covid-19 is challenging- and will continue to challenge- the events industry. Consequently, budgets are tighter than usual, and revenues will be critical if events are to find a successful future. Developments in technology mean there are solutions available that organisers can onboard and tackle the problem of cash. The route to safe, efficient and enjoyable future events is to invest in suitable payment methods and bid goodbye to the dangerous and cumbersome nature of cash.