According To A Survey, There Has Been A Sharp Increase In Refusal To Pay Cash During Confinement.

2020-06-04   |   by CusiGO

The Charity Association operates on a voluntary basis. According to the results of Ifop’s survey of Brinks remittance company released on June 3, 11% of French met with a businessman who refused to pay cash during the blockade.

During the pandemic, many businessmen posted “payment by recommendation card”, but some trademarks, such as Burger King, dare to “pay by bank card only”, which is an illegal requirement for any payment less than 1000 euros.

As a result, the Federation of security companies (fedsfi) filed a complaint with the competition authority. In fact, Patrick Lagarde, President of the French company brink, soon opposed the “cash demonisation campaign” launched by credit card issuers or digital payment providers.

Behind this text battle, there is a huge interest in the future of payment means. According to a detailed study by the European Central Bank, by 2017, cash still accounted for 50% of value transactions and 70% of the volume. However, according to orbital projections, this proportion will decline by 30% by 2023. According to Patrick Lagarde, “the crisis may accelerate this trend until it reaches a certain level.”.

Too much cash flow could cast doubt on the economic model of the remittance industry (50% of fixed costs) and on the banking network of money dealers (53000 in France), as French banks have acknowledged. At the same time, the increase in ticket prices is conducive to other payment methods and further accelerates this trend.

So far, according to the Ifop poll, 67% of French people have given priority to paying cash for daily small purchases. But the crisis of covid-19 left some traces, such as the fear of infecting the virus through money A year ago, they were still the vast majority (87%) willing to pay for bread or tobacco in cash.

The blockade has accelerated this trend. Contactless card payments were quickly collected, especially as government recommended bank and credit cards accelerated the increase in the contactless card ceiling to 50 euros from April. It mainly attracts businesses such as bakeries, health clinics and tobacco shops.

The disappearance of cash is also a social problem. In fact, it is about ensuring that all people, including minors or those who have not been expelled, have access to cash nationwide.

In fact, French banks have never given priority to one method of payment. Some believe that access to cash must even be seen as a public service. However, it is ultimately up to the user. Not to mention that cash is mainly used for collection, not for payment.