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Brink’s CEO says cash usage has increased during the pandemic.

Digital retail sales have skyrocketed as home consumers spend more time online during the coronavirus pandemic, but cash remains the king. Brink’s..

Doug Peltz, CEO of a cash management company known for carrying gold, told CNBC’s Jim Cramer on Tuesday that cash circulation in the U.S. economy is even higher than pre-pandemic levels. ..

“Potential investors are confused that cash is declining,” but “cash is as strong as it used to be and the amount of cash is [used] It’s just as strong in the economy. “Sick” interview.

Despite the growing popularity of digital trading in the increasingly contactless world, physical money remains the mainstay of direct retail purchases. Pertz explained that the results haven’t changed significantly since a year ago.

Citing information from the Federal Reserve Board, he said cash circulation has risen from the mid-single-digit compound annual growth recorded in the last three decades, up 16% year-on-year. ..

In addition, the company states that 35% of in-store purchases in the United States continue to be made in cash.

Regarding Brink’s, it is said that the system processed 6% more cash than the previous year.

“It clearly suggests that cash will never run out,” Pertz said.

Brinks announced its fourth-quarter and full-year results for 2020 before the stock market began trading on Tuesday. In this session, stocks rose more than 6% to trade at $ 80.86. The company exceeded analysts’ estimates for the quarter, generating $ 1.02 billion in revenue and $ 1.64 in earnings per share. Revenue increased 9% year-on-year. It was Blinks’ fastest growing quarter since 2018.

Full-year revenue of $ 3.69 billion, slightly higher than what the company brought in 2019, was hurt by the decline in revenue in the first half of the year.

But Brink’s sees the future in the field of digital cash management. Approximately one-third of retail transactions in physical stores continue to be in cash, and Brinks aims to offer an integrated solution, Pertz said.

This solution helps retailers convert physical cash to digital format in-store, much like debit and credit card digital cash providers make payments.

“We believe we can offer that digital cash management solution, and that’s what we’re coming to next,” he said. “This is the integration base we are aiming for. Solutions are very important and we believe there is a huge untapped market for cash management in this area.”

Brink’s CEO says cash usage has increased during the pandemic.

Source link Brink’s CEO says cash usage has increased during the pandemic.

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