How Cash Keeps Travel Friendly
Mar 22, 2024
With international travel on the rise, so too is related cash demand. UK-based currency exchange Travelex reports a 24 percent increase in annual revenue and is optimistic about 2024, saying even people who use little cash at home rely on it for vacations. But why?
Writing for The National News, Chris Blackhurst opens with the observation that ‘there is no substitute to notes and coins when we are travelling’ and the reasons for this are numerous. Firstly, while cash usage has risen modestly in Britain after a 2020 dip, worldwide circulating cash is rising. The US Federal Reserve reports dollar bills in circulation have doubled in the past ten years, and many nations continue to favour cash for everyday transactions.
Richard Wazacz, Chief Executive of Travelex notes ‘other countries have much stronger cash-based economies than the UK’. Banknotes and coins are a simple and reliable way to interact with local economies, and they’re also a friendly presence in pockets and wallets. Even if the words and pictures on them are unfamiliar, worldwide they remain easy to count and understand, helping people ‘feel reassured’ in new environments that may otherwise be intimidating.
Cash also makes budgeting in different currencies easier, helping reduce stress caused by unpredictable transaction fees added to many cashless payments, and keeping expenditure visible at all times.
Typically, cards highlight how much I’ve spent when what I’d like to know is how much I’ve got left. Younger people are using cash to budget with.
Blackhurst observes ‘the world lacks a unified payments system, and there is no sign of one developing’. Countries take some cashless payments but not others, with China recently being highlighted as a difficult place for foreigners to access cashless payments. Some areas lack cashless infrastructure, and in others ‘people like sticking to cash because it affords security and anonymity.’
Ultimately, cash always works, and with no hidden fees. Norway is among the worlds lowest cash users domestically, yet ‘currency exchanges at Oslo Airport are hugely busy.’
Norwegians, it seems, will pay for everything via electronic transfer or cards or phone or watch when at home, but when going to Bali, say, on holiday, they will want cash, they’re not confident cashless will work there.