The future of payments: why cash and cashless are both key

Conversations about the future of payments and fintech tend to revolve around the idea that the future is cashless. Between cards, e-wallets, and other digital forms of payment, it’s easier than ever to leave the house without bills or coins.

But cash is still king in many places, especially in developing countries where internet infrastructure is lacking and/or large parts of the population remain unbanked.

Even in major economies, information from PYMNTS shows that while 86% of consumers across major economies are now familiar with digital wallets, many still use a mix of digital and traditional payment methods.

So while digital payments are transforming how people transact, there are many reasons why cash isn’t going anywhere. 
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Cash acts as a reliable back-up

While digital payments offer speed and convenience, cash serves as a back-up in case of power outages, cyber attacks, and natural disasters. This is true even in markets where e-commerce expansion and government-backed initiatives are accelerating the adoption of digital payments, such as Nigeria and the Philippines.

Of course, cash is a handy backup even in case of just spotty internet coverage and unreliable mobile networks.  

Cash offers anonymity, security

Unlike digital payments, cash transactions don't have to be traced or recorded. People are still wary at the prospect of the government or any other regulating body having an eye on their transaction data.

Cash users also don’t have to worry about their transaction data being hacked or leaked. There’s also no risk of a mass IT failure, which theoretically could take down entire payment systems if they’re big enough.

While financial institutions look to alleviate privacy and security concerns via measures such as Know Your Customer (KYC), and Anti-Money Laundering (AML) regulations, enforcement still needs work and varies significantly across jurisdictions.

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Sometimes old habits die hard

It’s not all developing countries that prefer cash. Even major economies such as Germany and Japan remain cash-heavy, thanks to a blend of local norms (like how they tip) and straight-up 

consumer preferences.

While there are initiatives to accelerate adoption of credit cards and other cashless payments in these countries, they move at a much slower pace than other developed countries.

Overall, it’s clear that cash is here to stay despite the increasing popularity of going cashless. 

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For businesses looking to accept both cash and cashless payments, having a bridge between the two is key. At eTap Solutions, the brand’s self-service payment kiosks make it easy to convert cold hard cash into credits on leading e-wallets like GCash and Maya. These are also available alongside other billers on the kiosks such as Dragonloans, Manila Water, Meralco Kload, and more.

For retailers especially in rural areas, eTap’s self-service kiosks are an efficient bridge between cash and cashless, enabling convenient digital transactions without the need for traditional banking infrastructure.

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Interested in placing an eTap kiosk right in your store? Reach out to the official eTap Solutions LinkedIn page or message Joe at joe@etapinc.com!

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Article by Pancho Dizon
Graphic by Javi Acosta

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