20 June 2023

Could cash be king once again?

| Ross Solly
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Kein Eis für Sie, Herr Solly! Sie müssen mit Bargeld bezahlen! (No ice cream for you, Mr Solly! You must pay cash!) Photo: Hanoisoft.

A very strange occurrence is unfolding across parts of Europe. Shops are turning their backs on credit cards and insisting shoppers pay with cash only.

Hard to believe, really, that in 2023 your plastic card is practically useless in some cities in these modern economies that have prided themselves on single currencies and streamlined economies.

I don’t remember the last time I had cash in my wallet or in my pocket. Have you tried paying for anything using cash recently? Young staff look at you incredulously when you try to hand over a fiver, or even crazier, a $2 coin. You’ll be lucky if they have change for you.

But in Europe, it’s the other way around. The rot kicked off in Germany, which has dined out in recent years on their progressiveness.

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People who know me reasonably well know I have a particular penchant for ice creams. I especially enjoy ice creams when I’m travelling, although my fondness for gelatos can strike at any time.

I spent the best part of six days in the German city of Augsburg, near Munich. During that time I visited at least two or three shops a day in search of ice cream. I had no trouble locating the gelatos, which certainly looked enticing, but not one of the vendors would accept my card. Cash only, they said. Some even had signs up saying plastic had no standing at this establishment.

In Munich, it was the same. Cash only. How could this be so?

I spoke to some German friends of mine who shared my frustrations. They told me the nonsense started during COVID when people started to lose trust in their elected officials. Apparently, that lack of trust extended to using credit cards.

“Nobody wants to use plastic any more because they don’t want the government to access their information,” one friend told me.

“Are you sure this is not more about vendors avoiding the tax office?” I asked.

“Of course, but people don’t trust the tax office either,” was the reply.

I also visited Prague and found a reluctance in the Czech Republic to accept plastic. In Slovenia – same story.

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Most restaurants and bigger cafes still accept cards, but they don’t give the impression that they are comfortable doing so. It seems this suspicion of elected officials is hard to shake!

I have a couple of Australian acquaintances who always carry cash and prefer to use it when they can, but they are definitely in the minority. Will we eventually follow Europe? Are we about to re-enter a time when cash is king?

No doubt many Australians don’t trust their elected officials and have a suspicion of government motives, but Australians also love taking the easy option, and there’s nothing easier than flashing your phone or your credit card to pay for your ice cream.

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I struggle to remember the last time I actually held cash in my hand…or the last time I actually went into a bank. I have bought and sold two houses over the last 15 years without ever actually meeting with anyone in person. Everything was done online.

If a business does not let me tap-and-go with my watch, then I will just move on to somewhere that does.

Nobody seems to have mentioned the surcharges for paying by card. An extra one or two percent on every retail transaction adds up. I already give the bank enough of my money without paying them an extra commission for the privilege of buying an ice cream.

Gregg Heldon11:56 am 22 Jun 23

Cash firstly and then my card. Will never use my phone for payments. Just my own personal preferences.

GrumpyGrandpa9:27 pm 21 Jun 23

In my opinion, anyone insisting on cash is doing so to avoid tax.

1. Cash is filthy dirty. Think Covid/ Flu.
2. Security issues – risk of robbery.
3. Extra admin – trips to the bank. Maintaining cash floats and balancing.

I know some business proprietors who only accept cards. It just simplifies their lives.

Ross of Canberra8:18 pm 22 Jun 23

Everyone not paying cash is handing a substantial percentage to every middle-person in the transaction.

HiddenDragon7:53 pm 21 Jun 23

Highly unlikely that cash will ever be king again in Oz, but it may well hang on for some time yet – a bit like (to continue the royal metaphor) a seriously non-woke version of the Duke of Sussex.

One of the reasons for this is that it’s not just people of a certain age who still prefer to use cash in some situations, or at least have the choice to do so. Cash is also preferred by some people who have moved to Australia from countries with less stable financial systems and more capricious governments than we have.

It’s also interesting to note that the queues of people waiting to use the dwindling numbers of cash machines at self-serve supermarket checkouts usually include people of all ages – not just the stereotypic Boomers or pre-Boomers who are still on the loose.

There is obviously a strong push from the banks – aided and abetted by reporters who unquestioningly parrot the anti-cash propaganda from the banks – to do away with cash but this looks like a half-smart strategy because if/when cash is completely marginalised by digital currency, it will be so much easier for the likes of Apple, Google, Amazon etc. to do over our unloved (by most of the public) banking sector in a comprehensive way. This would particularly be so with the benefit of AI to handle many of the more complex (and lucrative) functions which Australian banks might see themselves as focusing on if they can get rid of the pesky, low profit day-to-day functions including handling of cash.

Roger Shelton2:09 pm 21 Jun 23

A significant aspect is businesses (and Gov Agencies) who now refuse to accept Legal Tender, that is, cash. This is discriminatory behaviour.

There’s no substitute for cash. You’d think we’d have learnt our lesson during the bushfires of 2020. There were several cases of people being unable to pay for petrol to escape an area after the internet infrastructure had burnt down meaning no eftpos facilities. Didn’t stop the previous government taking the first steps to eliminate cash.

I’m carrying more cash around again after more and more restaurants charge credit card fees.

This is a city issue and if you travel to western NSW, western Queensland and the Northern Territory as examples, the number of times there are Internet failures is quite significant compared to cities. Always carry enough cash for accommodation and fuel when travelling in remote areas. Sydney was hit once with a two-hour failure of the Internet for one major bank and it caused chaos.

Credit cards are convenient and essential but we’re still far off from a cashless economy. Some (many?) people still use cash to make small purchases like ice creams, coffees, newspapers and sometimes at IGA, big W and Bunnings. Why? Not at all out of suspicion of officials or institutions, but just personal preference. Why should we all be forced to carry around a phone just to buy a coffee, or gelato? Many grew up on a strict budget and cash in the pocket helps controll personal expenditure. Going cashless might be convenient for cashphobic businesses, but I’m the customer. A customer who taps a note over the card machine that’s automatically shoved towards me when I buy a coffee. Think also what would happen if that beloved phone was lost, stolen, out of charge or just failed. We’re already too dependent on the ubiquitous mobile phone and maybe have to be weaned off them.

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