Cash and its usage has gone through its biggest test in recent years, and there are strong signs and data that suggest that it’s here to stay.
Recent studies suggest that in the UK alone, approximately £90 billion (€107 billion) is circulating (Value of money in circulation in the UK 2023 | Statista) – 40% higher than a decade ago.
In fact, a recent study by Credit Karma suggests that half of UK households are using more cash, compared to 2023, and two thirds of the 18- to 34-year-old generation are using more cash than they did 12 months ago (Cash makes a comeback as more people revert to coins and notes | This is Money), as rising costs of living take hold and cash becomes the go-to budgeting tool. More than anything, cash is resilient.
If cash is a constant, then the need to manage it efficiently is increasingly key for retailers, and rejecting cash payments or going cashless means that the consumer will often shop elsewhere, which is a worst-case scenario for the modern retailer.
A Technology-Led Approach
The management of cash has often been seen as the last manual process to benefit from a technology-led approach.
Guy Thorne, Vice-President & Country Manager, UK & Ireland, Sesami, said, “In recent years, I’ve witnessed many businesses and customers being extremely focused on technology-led investments in self-checkout solutions – more often cashless – digital shelf labels and digital marketing, each searching for that way of enhancing their customer journey, better understanding the consumer, and making life easier for everyone, to run the business efficiently.”
Making marginal gains that compound over time makes a huge difference, added Thorne.
“Managing cash via the introduction of automation is only the first step, and allowing strategic partners like Sesami to ‘walk the cash journey’ with our clients and partners yields some game-changing results for businesses: streamlining operational processes through an AI data-led approach, automating time-consuming and labour-intensive manual tasks, and freeing staff up to focus on what they do best – supporting and helping their consumers,” he said.
Rethinking Your Cash Strategy
Thorne stated, “The truth is, having the right cash management partner can be transformational for many businesses.
“Recent UK government announcements will see a significant rise in employers’ national insurance contributions, and this will mean businesses will now have to work even harder to reduce operational costs and reinforce the focus on driving efficiency and a speedier return on technology investments.
“It is anticipated that the UK supermarket sector alone will see an increase in costs of more than £1 billion [€1.2 billion]. It is for these reasons retailers will need to stop missing out on cost-saving opportunities, and this is where experts like Sesami can help.
“It isn’t lost on retail businesses that, in the UK, costs continue to rise on bank processing and merchant fees – logistics fees also continue to increase – all compounded by the significant number of bank branches closing, which forces an unbelievable amount of pressure onto the UK Post Office, who, month on month, continue to post record cash deposit totals across their network.
“They are encountering far more operational costs to cope with the deposit demand, and therefore seek to charge the banks more for the privilege, and who ends up suffering? Our amazing retail businesses, who see their tariffs go up as a consequence.
“This is where Sesami get to work, as we understand the full cash ecosystem. The power is now in the retailer’s hands, and Sesami can be the educator and the enabler. Cash is seemingly always going to be a constant. Is now the time to rethink your cash strategy?”
For more information, visit www.sesami.io.
This article was written in partnership with Sesami.
