world cash in circulation - atmia · • the value of cash in circulation continues to grow at an...
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World Cash in Circulation
ATM & Payments Innovation SummitOctober 2019, Rome
Ron DelnevoATMIA
Introduction
Hello!
Ron DelnevoExecutive Director
ATM Industry Association
+44 7973 210154
• Euro zone
• Non-Euro zone
• UK
• USA
The trends are good almost everywhere, but we will focus on some crucial markets
Euro – value of banknotes in circulation
Source: ECB
Euro – value of coins in circulation
Source: ECB
Switzerland – value of banknotes in circulation
Sweden – value of notes and coins in circulation
UK – value of banknotes in circulation
Source: Bank of England
USA
0
200
400
600
800
1000
1200
1400
1600
1800
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Cash in circulation - USD in billions
Circulating – but not used for payments
• Despite the growth in cash in circulation in almost every market, we keep being told the cash is all being hoarded.
• How high off the floor must everyone’s bed be?
Let’s look at the UK to slay some myths
The British Retail Consortium Payments Survey 2018 seemed to show that cash only accounts for 20% of payments:
•Cash £77.7 billion
•Cards £296 billion
Let’s look at the UK to slay some myths
The British Retail Consortium Payments Survey 2018 seemed to show that cash only accounts for 20% of payments:
• Cash £77.7 billion• Cards £296 billion
Cash issued in UK in 2018: £197 billion
Card expenditure in UK in 2018: £296 billion
TOTAL: £493 billionTotal UK household expenditure in 2018: £500 billion
Cash is 40% (NOT 20%!) of all payments by value; over 50% by number of payments
So everything is rosy?
Not quite!
In many markets, both access to cash and cash acceptance are under threat
• So what do we need to see?
• In my opinion, government intervention to guarantee access to, and acceptance of, cash
AND WE ARE STARTING TO SEE THIS
Regulatory pressure in Sweden
And it wouldn’t just be cash protected by government legislation, it would be PAYMENT CHOICE
ALL businesses which accept in-person payments to be legally obliged to accept ALL payment methods
So what else do we need to see?
We need to see
In every community – in the UK that will mean locations with 1000 or more adults in residence – we need to see Community Financial Services Hubs with Smart ATMs, capable of:
of both banknotes and coins
deposit
recycling
dispensing
How are these to be funded?
Two methods:
• Economic levels of interchange
and / or
• Reasonable charges met by the public and businesses for these local services
As far as acceptance is concerned, look at the US
Conclusions
• The value of cash in circulation continues to grow at an exhilarating rate in almost every market
• More cash is being used for payments than most surveys indicate
• Government legislation is required to safeguard Payment Choice
