Technology and IT causes a decline in cash usage

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

Figures that indicate a clear trend

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.

Dataphones: the beginning

The history of electronic payment terminals and points 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 data terminal.
These devices have been around for decades but historically they have had quite a few limitations, and today

NFC and contactless payments

NFC, as its name indicates (Near-Field Communication) is a very short-range communication technology, and its main use is to make payments at a very small physical distance, otherwise it is no longer enough. It became popular around 2015.
This technology is carried by modern dataphones to receive money, and on the other hand, most current credit cards, as well as most mobile phones, also incorporate a chip of this type, to be able to pay or send money to the dataphone, in both cases.

The Bizum

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.

Electronic / Digital invoices

At the business level, electronic invoices have become essential for the collection and payment of customers and suppliers. This system streamlines the slow and tedious process of invoice paperwork.
At Inforolot we have our own electronic invoicing solution, which has been very useful to some of our clients, and it will surely get better, like all digital money, to the detriment of physical money.

Bizum computer technology decline physical money
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