In early March, the World Health Organization (WHO) recommended the use of contactless payment, as banknotes and coins frequently change hands. As a result, cash withdrawals are down 60% on last year.
Cash can be a source of coronavirus transmission
Against the backdrop of the Covid-19 epidemic, cash payments are becoming increasingly rare. A few days ago, the European Banking Authority (EBA), in line with recommendations issued by the WHO, asked the authorities responsible for payment services in each EU country to facilitate contactless payments.
Numerous studies have shown that cotton-substrate banknotes, which account for 90% of the world's banknotes, including the euro, are known to harbor more bacteria than the polymer banknotes adopted by the UK, Canada and Australia. The central banks are nevertheless reassuring, stating that "the probability of contagion by a virus via a banknote is very low". In March, the WHO estimated that a virus could live on a banknote for a maximum of 2 hours. However, this minimal risk has not prevented China from disinfecting its yuans with ultraviolet rays.
Health professionals remind us that the application of barrier gestures is necessary to avoid contamination. They recommend washing your hands after handling cash, and avoiding touching your face. The use of contactless payment can also reduce the risk of transmission.
Cash withdrawals down sharply
The Syndicat national de la banque et du crédit reported a sharp decline in cash withdrawals in the last week of March. Withdrawals from ATMs were down 60% year-on-year. At the same time, contactless payments rose by 4%, and by up to 10% in pharmacies. In addition to the fear of catching the virus, these figures can also be explained by the implementation of confinement, which is forcing the French to limit their movements.
A number of associations, notably the Fédération nationale des associations tutélaires (FNAT) and the Union nationale des associations familiales (UNAF), have warned of a rise in the number of retailers refusing to accept cash payments, pointing out that 5% of consumers have neither a payment card nor a cash withdrawal card. In normal times, as in times of Covid-19, article R 642-3 of the French Penal Code applies, imposing a fine of 150 euros on any retailer refusing to accept payment in coins or banknotes.