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November 29, 2020
Finance

2020 COVID CRISIS: DO WE NOW ABANDON CASH AND FOCUS ON CARD PAYMENTS ONLY TO REINSTATE MAJOR EVENTS?

It is no doubt that covid 19 has affected every sector of our lives, from how we do shopping, travel, economy to health services. Many of us have been pressured to adapt to many things that we previously took for granted. Many people have shifted to online shopping, remote working, electronic payments, among other things that have significantly changed. There are so many uncertainties, and until the situation gets better, we can only do everything we can to curb the virus spread. A heated topic has been the use of cash as a payment method. While health officials say that the use of cash could expose you to the potential risks of spreading the virus, other retailers insist that’s the easiest way for transactions in their business.

As such, everyone should be keen not to make rash judgments. As we all know, cash is essential to many people across the world. In fact, many people rely on cash as a payment method. Many people are not yet ready for the big transition to electronic payments only, and it is a subject that probably requires more time or even more than a pandemic.

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Reinstating major events

However, necessity is the mother of invention. According to Chris Norminton, many transactions have seen people forgo cash in favor of digital payment methods that involve less contact than banknotes and coins. Since scientists still don’t know much about covid 19, we can only prevent its potential spread. On the global stage, cash may slowly be ending its reign at least until everything is back to normal, which is unknown. Recently, there have been promising observations as many governments have managed to control the virus quite well, given the many deaths it caused in the initial stages. Significant events, for instance, sports, have started resuming but slowly as sports planners keep safety measures in place.

Many events companies are now more vigilant than before as they hope to recover the substantial economic losses during the pandemic. That means focusing on digital payments only until the situation gets better. Card payments have emerged as a solution to reduce potential risks of the virus as major events resume. From ticket purchases to vendors in events, cashless payments are the only way to drive their businesses during the pandemic.

Is there a likelihood of a cashless society?

One thing for sure is after major events are reinstated, cash will be favorable again. Although covid 19 has favored the use of cards over cash, many people are unlikely to abandon their banknotes anytime soon. While others are concerned about digital security, others are not ready for the transition yet. Certainly, card payments are the way out of the crisis even if we will go back to cash after the pandemic. But since digital payments have grown in popularity now, they will remain even after the pandemic alongside cash payments.

The bottom line

Cash remains vital to our economy and society. If card payments are what it takes to curb the virus and reinstate the major events, then be it. However, our response to cash and cashless payments should remain as balanced and proportional as possible. All in all, we must wash hands and sanitize whether we use cards or go cashless.

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