CONNECTING THROUGH CASH – KEEPING THE HEART OF CONVENIENCE

There’s a principle in the world of science and technology called ‘Moore’s Law’. First observed in the ’60s, ‘Moore’s Law’ posits that consumer technology (and the devices that we use every day) double in power every 1 & 1/2 – 2 years. Equally, the rate of technological improvement speeds up by a fairly consistent rate within the same timeframe.

Don’t click off this article just yet! Yes, you are still reading an article on C-Talk! You haven’t accidentally drifted over to ‘The Economist’ through a cleverly concealed hyperlink.

So why am I, a writer for the convenience and retail trade going on about ‘Moore’s Law’…?

A few days ago I walked into a local convenience store for a typical ‘top-up’ shop run. I bounded along the aisles, almost on autopilot, grabbing what I needed. When I reached the checkout, however, I did something that not long ago would have been the stuff of science fiction…

… I tapped a button on the side of my smartwatch, waved it at a scanner, and paid for my shopping with a flick of my tech-laden wrist.

Some of you reading this, (especially those in places like London – you know who you are!) might think nothing of this. But as I walked off with my bag the implications of what I had just done started to hit me! Especially considering the ease with which I did it, on a kind of ‘autopilot’.

I want you to cast your mind back to the world as it was pre-2020 – before we went through a pandemic that has managed to quitetly change so many aspects of our day-to-day lives.

A few short years ago, our checkouts didn’t have plastic screens on them, self-checkout machines were still seen as intimidating and newfangled by many; and most importantly to me, we almost all carried cash! In the 2 years of a typical Moore’s Law cycle, now when we leave the house for a run to a local convenience store our wallets, pockets and purses have begun to feel rather different.

According to a study by the Bank of England, cash spending (with paper and copper) fell by more than half (55%) during the height of the pandemic; fueled by our need to reduce physical contact with transitory objects like banknotes. However, while spending as a whole also went down, the proportional rate of the expenditure via digital mechanisms (cards, ApplePay, etc.) rose by an alarming 75%.

It would be understandable then for those in the convenience & retail sector to start listening out for the death knell of a cash-centric economy. In particular, as Rishi Sunak has assumed premiership, talk of the near-mythical ‘Britcoin’ and digital currency has once again begun to rear its ugly head.

However, I want to encourage those in our sector towards temperance here; even as someone who has become used to paying for a Mars Bar with his watch like a low-budget Captain Kirk.

Cash processing machine solution experts Voulmatic’ have recently reported results of their post-pandemic study that has seen a sharp rise in cash-spending post-lockdown; and a proportiaonal decrease in digital solution usage amongst consumers. It is certainly true that digital/cashless spending has seen a marked increase, but cash is certainly not dead yet! 

Volumatic reports that 73% of consumers are making cash purchases regularly; with cash spending seeing an industry-wide reconvey rate of 75%. This is not back up to pre-pandemic levels, but it’s nevertheless a mighty comeback! The data seems to suggest that the understandable impulse to leap towards cashless and digital spending solutions in our businesses might be a little premature yet.

I can’t help but play devil’s advocate and acknowledge that using contactless payment is faster and easier – one might say more convenient. And isn’t that the point of our industry?

However, I put it to you that there is more to convenience than just efficiency and ease of use at the point of sale! Our independent small businesses are more valuable than that!

… See, I left out the beginning of my story at the start of this article. Before I made my purchase I was proceeded in the queue by someone quite a bit older than me – an older lady who paid with cash that she extracted from her purse. Her purchase was quite a bit slower than mine, for sure. However, looking back It makes me realise that ‘convenience’ is a double-edged sword. For me, convenience is often about speed. For her, however, it might have been more so about her being able to make purchases without having to keep up with the rapid advances of modern technology.

By not giving up on cash, we can ensure that we can keep catering to all of our potential customers in the community; expanding our customer bases and keeping our sector alive! A speedy, cashless interaction can be good for business, but so can a quick conversation as cash and change are exchanged. The human touch can go a long way!