The Importance of Still Keeping Loose Change

In the Philippines, the convenience of digital payments is quickly becoming the norm. There are now fewer lines to the ATMs every payday, people are now using their phones more for payments, and digital banks are becoming more prevalent. Amidst the digital transformation the country is undergoing, we often hear “I don’t have cash” from our peers, which begs the question: Is loose change now becoming a thing of the past?

As we steadily embrace the future of cashless transactions, it’s crucial to recognize the enduring importance of having physical currency readily available. From unexpected emergencies to establishments that have yet to fully embrace digitalization, the presence of loose change remains a vital component of financial preparedness.

Emergencies and Digital Outages

While the advent of digital payments has undoubtedly revolutionized the way we conduct transactions, it’s important to acknowledge that technology is not infallible. Power outages, network disruptions, or cyber-attacks can render our digital payment methods temporarily inoperable, leaving us in a precarious situation. Even the most seemingly impenetrable of companies experience outages–remember the Meta outage from a couple of weeks ago? It happens even to the best of them.

In such instances, having a stash of physical cash on hand can prove invaluable, ensuring that we can still meet our immediate needs, whether it’s purchasing essential supplies or securing transportation.

Moreover, in times of natural disasters or other emergencies, the ability to transact with physical currency can be a lifeline. When infrastructure is compromised and digital systems are offline, cash becomes the only viable means of exchange, enabling access to vital resources and services. By keeping a modest amount of loose change readily available, we equip ourselves with a contingency plan, ensuring that we can navigate even the most challenging circumstances with a degree of financial autonomy.

Treat it like your company’s petty cash–always there when needed, less the hassle of bureaucracy. In your case, the hassle of withdrawing cash.

The Presence of Cash-based Establishments

While the Philippines is steadily advancing towards a digitized economy, it’s crucial to recognize that not every business or establishment has fully embraced the transition to cashless payments. From local markets and street vendors to small family-run shops and eateries, there remains a significant segment of the economy that continues to operate primarily on a cash basis.

By maintaining a supply of loose change, we ensure that we can seamlessly transact everywhere we go.

The temptation to discard physical currency altogether is not feasible in the country as of yet. The importance of maintaining a modest stash of loose change cannot be overstated. By doing so, we safeguard ourselves against unexpected emergencies and technological disruptions and also make sure that we’re good to transact anywhere we are. (GFB)