"Counter-currents in the digital age": Why is cash still indispensable?
In the age of settling all bills with one-touch mobile payments, the Chinese government suddenly requires merchants to "reserve cash"?
But the policy has its own profound social and economic considerations.
In today's world where digital payments are almost dominant, the existence of cash may seem a bit out of place, but it does play an indispensable role.
First of all, it is impossible to ignore the heavy reliance on cash of certain groups of people.
According to statistics, although the number of electronic payment users in China has exceeded 800 million, the level of digitalization of groups such as the elderly and children is still low.
For them, the complexity of electronic payment operations is not only a technical challenge, but also a security concern.
In addition, international tourists face payment barriers that cannot be ignored in the absence of a local electronic payment system.
Together, these factors are driving policymakers to re-evaluate cash payments.
The proposed policy also exposes the limitations of the electronic payment system. Although efficient and convenient electronic payment systems are not without flaws.
System failures, network issues, or security breaches can inadvertently cause confusion or loss to users.
Therefore, cash is not only another option for payment, but also a safety net in the event of problems with the electronic payment system.
This reliance on cash not only reveals the diverse needs of society, but also reflects a complex challenge of balancing the needs of modernization with traditional security.
We'll take a closer look at how cash is paid from a global perspective and how to find the best balance between domestic and international payment needs.
"Payment Methods from a Global Perspective": How to Balance Domestic and Foreign Payment Needs?
The diversity of payment methods has become a major test of the competitiveness of the tourism market in various countries.
As one of the most popular tourist destinations in the world, China attracts millions of international tourists every year.
But once these tourists arrive in China, they may encounter a thorny problem: despite the country's well-developed electronic payment system, international tourists often cannot use it smoothly due to the closed nature of the system (e.g., Alipay and WeChat Pay require a Chinese bank account to be linked).
According to statistics, China received more than 145 million international tourists in 2019, but a large number of them reported inconvenience as a major pain point in their travel experience.
This not only affects the consumption experience of tourists, but also indirectly hinders the revenue growth of tourism and related industries.
In response to this challenge, China has begun to explore internationalization solutions, including but not limited to QR code payment, and tried to integrate international payment methods such as Visa and MasterCard with local payment systems, so that international tourists can also enjoy the convenience of scanning and paying.
China's strategy has implications for the rest of the world.
For example, Thailand and Japan, two countries that also rely on tourism as an important pillar of the country's economy, are also actively expanding and simplifying their payment systems to accommodate the needs of international tourists.
Thailand has launched a "TayPay system" for Chinese tourists, while Japan has been heavily promoting its mobile payment system in the run-up to the Olympics to ensure that international visitors can experience local shopping and services seamlessly.
The internationalization of this payment method not only solves the problem of instant payment for tourists, but also provides new perspectives and possibilities for the future development of the global payment system.
As more countries begin to pay attention to the international interconnection of payment systems, the unification of global payment methods may no longer be a distant dream.
How to keep traditional payment methods alive and their necessity in the modern economy to ensure that both domestic consumers and international tourists can find their place in the payment method.
"Safety net or shackle: the double-edged sword of cash": the advantages and risks of cash payments
In today's increasingly popular digital payments, cash still plays a role that cannot be ignored.
Although seen as a traditional and somewhat outdated payment method, cash payments have unique advantages and hidden risks.
This duality makes cash both a safety net and a constraint in modern society.
First, let's explore the advantages of cash payments. The immediacy and anonymity of cash is one of its greatest advantages.
In remote areas where there is no internet connection or in emergencies such as power failures, cash payments are irreplaceable.
According to the National Bureau of Statistics, although electronic payment users have covered more than 90% of China's adult population, in some special circumstances, such as natural disasters, the electronic payment system may be paralyzed, and cash shows its irreplaceability.
For those who do not have easy access to electronic payment tools, cash provides an easy and understandable way to pay, guaranteeing their freedom and security of consumption.
The disadvantages of cash are equally obvious. It not only increases the cost of management and custody for individuals and businesses, but also makes it easy to become the object of theft and loss.
Merchants have to invest more in security systems and insurance in order to keep large amounts of cash, which undoubtedly increases their operating costs.
There are also inefficiencies in the circulation and management of cash, such as the need for manual counting and access to banks, which consume additional time and resources.
According to a survey, the average annual cost of additional cash management by merchants is tens of billions of yuan.
This duality of cash, i.e., its convenience and security as a traditional means of payment, and its potential risks and management costs as a physical asset, constitute its complexity as a means of payment.
In the modern payment system, how to achieve complementarity between cash and electronic payments to jointly build a more robust and inclusive economic environment.
"In-depth Analysis of Policy Impact": The Deep Logic Behind the Notice of the Three Departments
On April 17, the People's Bank of China, the Ministry of Commerce and the State Administration of Foreign Exchange jointly issued the Notice on Further Optimizing Payment Services in the Commercial Sector and Improving Payment Convenience.
China's three major ministries have jointly issued an important notice to further regulate and promote the coordinated development of electronic payment and cash payment.
The core of this policy focuses on optimizing the payment environment, ensuring the diversity of payment methods, and protecting consumers' payment choices.
The intended goal of the policy is to build a more open and inclusive payment market, reduce reliance on a single payment method, and ensure the resilience of the payment system in particular in emergency situations.
The specific content of the policy includes increased regulation of electronic payment platforms, requiring them to accept all forms of legal payment methods, including cash, nationwide without barriers.
The policy also emphasizes the protection of cash payments, prohibiting any form of "cash refusal", especially in the public service sector.
The implementation of this policy is clear positive news for those who do not have access to electronic payments, such as the elderly and low-income families.
For the average consumer, this means that they will enjoy more freedom and flexibility when choosing their payment method. No more worrying about not being able to use cash at certain merchants or services.
For merchants, they are required to adjust the payment methods they accept accordingly, which may mean that they need to update their payment systems to ensure that they can process both electronic and cash payments. Although this will bring some cost pressure,
But in the long run, this diversity of payment methods can help attract a wider customer base and increase consumer satisfaction and loyalty.
The long-term impact of the policy could have a significant impact on the entire electronic payment industry.
On the one hand, this will drive further innovation in payment technology and prompt payment platforms to develop more diverse and secure payment solutions.
On the other hand, it may also accelerate the modernization of cash payment systems, such as reducing merchants' operating costs through more efficient cash handling equipment and technology.
Overall, this policy not only strengthens the inclusiveness and reliability of the payment system, but also may be a catalyst for innovation in related technologies and services.