We have more and more digital/technological tools that make it almost never necessary for us to use physical cash, which is causing a slow decline
If we review the history of transactions and expenses according to figures from the Bank of Spain, in a matter of 10 years, cash has lost a lot of relevance compared to electronic transactions.
In 2008, just over 1 million (registered) transactions were made with cash. 10 years later, that figure has dropped to 900,000.
In stark contrast, “digital” payment went from 1,900,000 in 2008 to no less than 3,900,000 in 2018. Almost twice.
And 4 years later, the figure is much higher: there was a very drastic decline in cash payments in 2020, and yes, as you can imagine, it was due to the pandemic. Many people wanted to avoid touching cash.
The history of electronic card machines and point of sale dates back to the early 1980s when VISA created the credit card registration system device, which would later evolve into today’s common card machine.
These devices have been around for decades but historically they have had quite a few limitations, and today
As its name suggests, NFC (Near-Field Communication) is a short-range communication technology primarily used for making payments at very close range; beyond that distance, it ceases to function effectively. It began to gain widespread popularity around 2015.
Modern payment terminals use this technology to receive payments, while most current credit cards and mobile phones also incorporate an NFC chip, enabling them to make payments or send funds to the terminal.
There is no doubt that this program has been a small revolution in the matter of small daily payments that may arise. In many aspects, it is no longer necessary to pay friends and acquaintances in cash, it is no longer necessary to ask for change and count coins… Bizum is much simpler and easier, we write the exact amount of money, select the beneficiary, and that’s it. It is indicated above all for personal use and for small quantities.
At the business level, electronic invoices have become essential for handling collections and payments involving customers and suppliers. This system streamlines the slow, tedious process of invoice-related paperwork.
At Inforolot, we have our own electronic invoicing solution, which has proven very useful for a number of our clients; this trend is sure to grow—much like the shift toward digital money over physical cash.
