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The growing relevance of cash in an increasingly changing payments world: An interview with Guillaume Lepecq
Journal of Payments Strategy & Systems,
12
(3),
198-206
(2018)
Abstract
As the appetite for cash remains unabated, few societies are close to ‘cashless’ or even ‘less-cash’. In fact, demand for cash has risen in most advanced economies since the start of the global financial crisis. People tend to take cash for granted, but the smooth, efficient and secure distribution of cash is actually supported by a complex ecosystem known as the cash cycle. Cash is not always the most efficient payment instrument but, in most cases, it is. Among other things, this interview deals with three major trends aimed at increasing the efficiency of cash. First, central banks have been adapting their cash distribution policies with a view to increasing the velocity of banknote circulation and the efficiency of the cash cycle. Automation has been the second area of innovation. Lastly, numerous other innovations contribute to the efficiency of cash. Cash possesses unique attributes, which are mostly unmatched by alternative payment instruments. At a time when confidence in banks remains low, providing access to a product that consumers want and need could contribute to restoring banks’ the image of banks with the public.
Keywords: cash; cash demand; cash cycle; cash efficiency; cash attributes
The full article is available to subscribers to the journal.
Author's Biography
Diederik Bruggink is Managing Director of Bruggink Consultancy and is an independent international expert in cards, payments, and market infrastructures. During his career, he has led and worked on several international and high-visibility projects, mainly with a focus on cashless payments, across the whole payments value chain, from (e-commerce) merchant acquisition through to issuing banks and within card switching and card processing organisations. He was one of the key authors of the first three editions of the ‘World Payments Report’, and he makes regular appearances on conferences in the cards and payments industry. He is a member of the Editorial Board of the Journal of Payments Strategy & Systems.
Guillaume Lepecq is Director General of the International Currency Association. He is a globally recognised expert in the subjects of cash and payments. Working primarily as a consultant over the last 15 years, Guillaume has specialised in retail transactions, including both cash and electronic payments, advising financial institutions throughout Europe on their payment strategies. Guillaume has written a number of publications and reports detailing the role of cash in society and the means by which it flows across the economic landscape including: ‘Future of Cash — An Asian Perspective’, ‘Cash Essentials — Beyond Payments’, ‘The Future of Cash’, ‘The Future of Smart Payments’ and ‘Managing the Changeover to the Euro’.
