Has coronavirus killed cash and coins for consumers?

The shops have reopened, but where has all the cash gone?
Has coronavirus killed cash and coins for consumers?

Cash withdrawals have more than halved in recent weeks
Cash withdrawals have more than halved in recent weeks

The shops have reopened, but where has all the cash gone?

As restrictions are lifted and we embrace a new reality, it seems among the baggage we've left behind are notes and coins.

Cash withdrawals have more than halved in recent weeks as consumers fully embrace contactless payments.

Shoppers have abandoned coins and notes in favour of the quicker option of tapping.

Cash withdrawals are down 56% in recent weeks, with more than three-quarters of shoppers using contactless payments at least once a week.

Banking officials are acknowledging the Covid-19 pandemic has "undoubtedly" fuelled a change in perception towards digital payments, with many embracing online shopping too.

According to the Banking Payments Federation of Ireland, a whopping 92% of Irish adults have now used contactless payments at least once, and almost half of consumers are using their phones or smart watches to pay for goods too.

Just 27% of customers favour cash over alternative payments nowadays, with convenience a real factor, but virus concerns an element too.

Despite the World Health Organisation and the European Centre for Disease Prevention & Control both insisting there is little evidence that notes and coins are helping to spread the virus, shoppers and businesses simply aren't taking the risk.

Retailers say they have never seen "such a dramatic shift", and Cillian Wright of Payment Plus, which provides card payment services, says consumer behaviour has changed.

"60% of consumers are paying by contactless when using their card in store, and more consumers are shifting to digital wallets such as Apple Pay or Google Pay. Businesses are adapting and consumer behaviour has changed," he said.

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