2 PAYMENT METHOD PROFILES: CASH
size; although the U.S. (by far the largest economy of the six) has one of the lower cost of cash numbers, there is little pattern with market size elsewhere. There are several possible explanations for this. Firstly, the subjectivity of data collection means there could be two vastly different numbers for the same country. Secondly, factors such as labor laws around minimum wages, Armored Transport industry composition, geographic size of the country, population density, and banknote and coin denominational mix will all make a difference. 3. Average cost of cash is… Using the KC Fed data, if we impose a flat weighted average then the cost of cash is 1.39%, but a market size weighted average is lower at 0.92% mostly because of the size of the U.S. There are also significant industry-level difference in the cost of cash. A 2014 study by Economists Incorporated found that the cost can differ from 0.76% for gas stations to 3.93% for grocery stores, although all survey participants were too small to use armored transport services so will therefore likely have a cost of cash larger than the industry average. 122
Regulation Across the world, there is regulation designed both to encourage and discourage cash usage. Regulatory regimes around cash can be placed into four broad categories:
1. Pro-Cash Regulation In China, cash acceptance has been mandatory for merchants since 2018. 123 Meanwhile, in 2024 the Australian government announced its intention to mandate businesses supplying essential goods and services to accept cash. 124 The Treasury is currently consulting on the issue and has proposed that the mandate commences from 1st January 2026. 2. Pro-Cashless Regulation In 2017, Turkish authorities announced their intention to be cashless by 2023, the 100th anniversary of the Republic, although this goal was only partially achieved. 125 Turkey also has foreign exchange regulation, 126 and a cash payment upper limit of 30,000 TRY. 127 Saudi Arabia has outlined its “road towards becoming a Cashless Society by 2030,” aiming to achieve 70% of non-cash transactions. 128 It has been announced that 98% of in-person transactions are now contactless, supporting this cashless goal. 129, 130 In 2018 Japan, which has seen more robust cash spending than most other developed countries, also announced a Cashless Vision with the aim to increase cashless to 40% of all transactions by 2025 and ultimately to 80%. 131
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