Functions of cash

In payments, both cash and electronic payment methods (e.g. payment cards, payment apps) perform important economic functions. They complement each other. Cash is used both as a means of payment and as a store of value. Despite an overall decline in usage, cash remains the most widely accepted payment method for in-person transactions. The majority of companies consider cash to be the most cost-effective payment method.

The vast majority of the population (97%) would like to retain the option of paying with cash in the future and being able to choose between cash or electronic payment methods themselves. This freedom of choice, which is also important economically, is further underlined by the unique features of cash.

From an economic perspective, it is important that all desired transactions can be completed easily, securely and cheaply. This seems to pertain in the vast majority of cases today, not least thanks to the fact that cash is always available.

The SNB is convinced that cash, with its unique features, will continue to play an important role as a payment method and store of value in the future. This assessment is underscored by the SNB's decision to develop a new banknote series.

Features of cash

Cash offers a number of unique features which alternative payment methods cannot offer, or cannot offer in an equivalent manner:

• Cash can be used at any time without the need for additional infrastructure or equipment. This is helpful in the event of electronic payment system outages. But cash is also a reliable means of payment in situations where there is no electricity or internet connection.
• Cash makes it possible for the public to access central bank money, which is important for fostering trust in commercial bank book money and thus for the functioning of the monetary system. It ensures that value can be stored and payment processes run independently of banks and financial institutions.
• Cash helps to foster competition in the payments field and has a dampening effect on fees charged for cashless payment methods. The majority of companies de[HR1] em cash to be the most cost-effective method of payment.
• Cash does not leave behind a data footprint during the payment process that can be tracked or analysed by third parties, thus helping to protect financial privacy.
• Cash promotes the financial inclusion of various demographic groups who, for different reasons, are not in a position to use cashless electronic payment methods.