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Despite payments companies' best efforts to replace it, cash as a payment method will be around for a long time, Michael Lee, CEO of the ATM Industry Association, told CardLine this week during an interview at SourceMedia's ATM, Debit & Prepaid Forum in Chandler, Ariz. SourceMedia publishes CardLine. "There's no way that cash will be withdrawn from society in the next generation," Lee said. Moreover, the informal economy, where people exchange goods and services outside of formal businesses, makes up about 30% of the world gross domestic product, Lee said. In this context, most people trade in cash, he said. In addition, businesses such as vending-machine operators, which generate $20 billion in gross revenues annually in the United States, still rely heavily on cash, Lee said. Cash is almost universally accepted, and consumers view it as having real value, he added. However, Lee sees a bright future for debit cards, which are designed to replace cash and check use. "The most dynamic payment (method) other than cash is debit cards because people say debit is like cash," he said. Debit transactions come closest to cash in making an immediate payment, unlike credit, which must be paid off in the future.
