Cash has long been deemed king, reigning supreme as a valuable asset. Despite challenges posed by the Covid-19 pandemic, the enduring question remains: Is cash still king? Fintech Review engaged in a dialogue with Simon James, Co-President of PayComplete.
Introduction to PayComplete: What’s Your Elevator Pitch?
At the forefront of cash management technology, PayComplete excels in manufacturing cash-acceptance hardware and developing IoT cash-optimising software. Renowned for our automated coin-operated payment devices, which power numerous parking and ticketing machines across Europe, we have expanded globally into retail, hospitality, and other sectors. We supply cash management components to various businesses and offer an IOT platform for smart ‘cash-recycling’ devices, streamlining cash transactions at the point of sale and securely managing back-office cash through ‘smart safes’.
Through strategic partnerships with cash-in-transit (CIT) businesses, such as G4S, we enable our customers to optimize working cash and gain preferential credit by ‘banking’ cash takings before leaving the premises.
Background and the Birth of PayComplete
Although our IoT platform was launched under the PayComplete brand in 2020, our legacy as a manufacturing business dates back to the late 1960s, specializing in cash-acceptance devices for leading banks and mints. Following the division of our conglomerate into distinct units, PayComplete emerged as a software platform utilizing the internet of things to optimize cash movement within organizations. I joined our sister company, Suzohapp, as its UK MD in 2018 and played a key role in this transition.
Prior to my role at PayComplete, I amassed two decades of experience in enterprise technology, particularly in fintech, beginning my career in sales. My journey led me to Certegy and later to Elavon, focusing on enhancing and simplifying payment procedures for merchants and retailers.
While digital payments have seen considerable innovation, the realm of cash management has witnessed limited transformation despite posing significant challenges for businesses in terms of operational complexity and cost.
The Standing of Cash in the Business Sphere
The onslaught of the Covid pandemic prompted a surge in contactless payments, compelling some retailers to temporarily halt cash acceptance. However, cash remains a preferred payment method for many individuals, especially the unbanked and underbanked segments. From a business perspective, cash transactions entail lower processing costs and no direct transaction fees, rendering it more favorable than digital payments.
By automating payments and harnessing cash movement analytics, businesses can mitigate theft, optimize cash utilization, and minimize back-office cash handling costs, making it a cost-effective option for retailers. According to the British Retail Consortium, cash transactions cost retailers 0.15 per cent of turnover, significantly lower than the 0.31 per cent for all payment types.
Toward a Cashless Society: Prospects and Realities
The global shift towards cash-free transactions is evident, with the UK experiencing a notable decline in cash usage from 50 per cent to 17 per cent between 2010 and 2020. While the pandemic expedited this trend, cash transactions have witnessed a partial recovery as they remain the preferred payment method for over a fifth of the population, particularly in light of increasing living costs.
Cash continues to feature prominently worldwide, accounting for over US$8.3 trillion in transactions and retaining substantial shares in various markets. The transition to a completely cashless society may be on the horizon, but it remains distant, given the prevalence and preference for cash among certain demographics and the cost efficiencies associated with its management.
Exciting Innovations in the Fintech Landscape
While intrigued by certain fintech advancements, I express reservations about the growing influence of de-fi and cryptocurrency. Despite the potential of blockchain technology and NFTs, cryptocurrencies’ current energy-intensive operations and volatile value raise concerns. I advocate for embracing flexible payment methods that cater to individual choices and demographic inclusion, emphasizing the value of providing options across cash, card, and digital payments.
Future Plans and Product Roadmap
Continuing to enhance our IoT platform and automated cash acceptance hardware, we aim to leverage our data capabilities to offer valuable insights to customers. Our recent foray into the retail sector, marked by the launch of modular, compact, and customizable automated cash acceptance devices and cash-recycling machines, reflects our commitment to innovation and customer-centric solutions.
In alignment with the retail media trend, we are exploring opportunities to integrate advertising into our devices, enabling retailers to leverage omnichannel physical and digital platforms for additional revenue streams.
