Cash is another victim of the pandemic

Before the pandemic, most of us wouldn’t have dared to pay for a coffee with a card. It’s very common today. The amount no longer determines the eligibility of means of payment. The need for strict asepsis, with cash fines due to pandemic containment measures, has caused banknotes and coins to virtually disappear from our daily use. Surprisingly, the end of the pandemic has not brought a cash recovery, according to a report by David Navarro. Withdrawals from banks fell 33% in 2020. Today it remains 27% below pre-Covid levels. On the other hand, POS terminals, the small machines we pay for, are up almost 50% compared to three years ago.

NFC, which provides ease of payment by card or direct mobile phone, has a price paid by users and businesses. First, with the cost of cards that are no longer free, and secondly, with what they pay for each purchase at the bank. Convenience is also important for the trader who doesn’t have to worry about income or cash transfers to the bank. There is also a consumer-intensifying effect in electronic or physical card payment: not “seeing” physical money and thus not losing a direct idea of ​​how much was paid for an item.

Not everything is an advantage. The digitization of payments has a dark side. In the case of banks, virtualization means there are fewer and fewer physical offices. This particularly affects less digitized groups such as the elderly. In this sense, it is noteworthy that the awareness campaign run by Valencian retired Carlos San Juan led to the award of the 2022 European Citizen. San Juan stirred the consciences of the banks and said, “I’m older, not an idiot.” Many banks have already taken measures to provide older people with more training in their digital tools and make it easier for them to manage physical assets as the transition to digital operations takes place. It makes a lot of sense that three MEPs from different parties, two from the Valencian Community, sponsored this nomination: Domènec Ruiz from PSOE; Esteban González Pons of PP; and Maite Pagazaurtundúa from Ciudadanos. It’s a lucky coincidence that succeeded in increasing Carlos San Juan’s hit on the sentiment of our banks. Nothing.

And one more thing:

The crisis will come at some point in all its severity. This is inevitable. But when that moment comes, the truth is that there are sectors in the economy where the decline has not been noticed. After all, tourism is one of them. We learned yesterday that hotel occupancy continues unabated, surpassing the best-ever year in the historical series by five points for June 2019. This 75% occupancy is the perfect springboard for July, where the concentration is still on, but also with good data and a great perspective for increased last-minute bookings. Generalitat plans to save 94% of arrivals between July and August in 2019, according to FJ Benito. Hopefully the prediction comes true.

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Source: Informacion


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