Mobile payments have changed our lives dramatically. With just one swipe, tedious tasks such as shopping, bill payment, and transfer can be completed quickly. According to statistics, in 2022, the number of mobile payment users in mainland China has exceeded 850 million, accounting for 88% of the total number of Internet users. The popularity of mobile payment has not only improved payment efficiency, but also promoted the arrival of a cashless society.
However, there are some shortcomings in mobile payment. For example, in the event of an emergency, such as a mobile phone running out of battery, a network outage, or a system failure, mobile payment cannot be used. For some special groups, such as the elderly, foreign tourists, etc., there will be many inconveniences in using mobile payment.
Although mobile payments have become the mainstream payment method, cash payments are still indispensable in certain scenarios. Based on this consideration, the People's Bank of China, the Ministry of Commerce and the State Administration of Foreign Exchange recently jointly issued a notice requiring merchants to retain a certain amount of cash to meet consumers' cash payment needs.
The purpose of this notice is to maintain the convenience of payment, enhance the ability of merchants to cope with risks, establish a good business image, and comply with the requirements of relevant laws and regulations. Next, let's take a look at why the three departments are refocusing on cash payments, and what this means for merchants and consumers.
The issuance of this notice by the three departments is mainly based on the following considerations:
Guarantee the convenience of payment. Cash payments are still the preferred method for many consumers, especially in unexpected situations, such as power outages, network failures, etc., to ensure that transactions go smoothly. In addition, it is difficult for foreign tourists to use mobile payment in China, so cash payment is more convenient for them. Some special groups, such as the elderly, are more accustomed to paying in cash.
Enhance merchants' ability to respond to risks. Cash reserves can help merchants cope with unexpected situations and maintain basic operations in the event of an impact on the electronic payment system. Over-reliance on electronic payments can reduce merchants' flexibility in managing their money, and proper cash reserves can help to better control the flow of funds.
Enhance the credit image of merchants. Consumers often perceive merchants with cash reserves as more stable and reliable, helping to build consumer trust.
Meet legal and regulatory requirements. Many countries and regions have laws and regulations that require merchants to retain cash to a certain extent to meet payment needs.
It can be seen that the notice of the three departments is not a complete denial of mobile payment, but hopes that merchants can make cash reserves to cope with various possible situations. For merchants, proper cash reserves can not only meet consumer demand, but also help improve risk prevention capabilities and establish a good image.
For example, if there is a sudden power outage and the mobile payment system is paralyzed, the merchant can continue to operate with cash on hand; If you meet foreign tourists, it is more convenient to pay in cash; If there are elderly customers, they are also more accustomed to using cash. Merchants have more cash on hand, which is beneficial to themselves and consumers.
Although mobile payment has become a mainstream payment method, cash payment is still indispensable in certain scenarios. The notice of the three departments aims to guide merchants to pay attention to cash reserves, so as to ensure the convenience of payment, enhance the ability to deal with risks, establish a good business image, and comply with legal requirements.
Mobile payments and cash payments are not an either/or relationship, but should complement each other. Mobile payments have the advantage of being efficient and convenient, while cash payments can play a role in special situations. The two go hand in hand to meet the payment needs of different groups and scenarios.
For merchants, proper cash reserves are not only conducive to maintaining normal business, but also to enhance consumer trust. For example, in the event of an emergency, cash reserves can ensure basic operations; For special groups such as the elderly and foreign tourists, cash payment is more convenient. Moderate cash reserves can also help merchants better manage liquidity.
For consumers, the retention of cash payments can protect their payment rights to the greatest extent. After all, in some special circumstances, such as a dead mobile phone, a network outage, etc., mobile payment will not be available, and only cash payment can ensure a smooth transaction.
Merchants and consumers alike should value the value of cash payments rather than discard them altogether. It is also necessary to actively embrace mobile payment as an emerging payment method to enjoy its advantages of efficiency and convenience.
Only when mobile payment and cash payment coexist and complement each other can we truly diversify payment methods to meet the needs of different groups of people and different scenarios, so as to promote the development of the payment system in a more complete and inclusive direction.