Cash is still KING

For those indiviuals who have for the past decade been predicting the demise of fiat cash,  and to those governments who believe completely displacing cash will result in both better fiscal management and enhanced financial inclusion, consider the following. The latest World Pay  report on payments has found fully 40% of all retail payments in Singapore during 2017 were cash payments!  This is relevant because Singapore is a modern city state with the best mobile telecom infrastructure, among the highest number of banked individuals (98%) , the most e-wallets of any market PLUS is home to Asia’s  safest and the world’s best digital bank (DBS). What the regulators and the service providers continue to ignore (or dismiss) is that general public trust in fiat cash exceeds any e-payment product and the costs of accepting cash especially for small value transactions remain lower than for any digital cash alternative. Look at the red sign posted at this small Singapore based merchant who accepts several different types of digital payments. It reads “Sorry to inform you that Cashless Payments is only available for transactions above $10. Thank you for your understanding”.

I see similar signs as this in Canada and in most highly developed markets. Ayodo advocates for and provides through our partnership with Yodo a CASH BASED alternative with the same low costs of acceptance and the same trust as fiat cash. Small merchants in Singapore clearly prefer Singapore dollars,  just as merchants in India prefer Rupees,  merchants in Mexico prefer Pesos and small merchants in Peru prefer Sols. They do this not because they are money launders or financiers of terrorism but simply to make the the small businesses they and their family rely upon for subsistance can reduce transactional costs and eeek out a better livihood. It leaves little to the imagination to realize that if cash is dominant in markets such as Singapore that it is even more dominant in other less developed countries. The World Bank report on payments indicates fully 65% of global payments remain cash based. Isn’t it time governments and not for profits doubled down on solutions that leverage modern cloud and blockchain technologies to perfect cash

Fresh n Spiky

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