Does handling cash transmit Covid-19?
By Charlotte Ninsiima More by this Author  John Bbaale who vends food stuffs walks with a small sanitiser to spray on the money after every sale. He says, he must be conscious of the current times of the resurging pandemic as opposed to putting his life at risk. At the main markets, one has to wash their hands with soap at the entrance, so that they easily access different points. For most market vendors, it stops there. They exchange money with customers and cling their hopes unto the initial washing. Money is a medium of exchange used to buy or sell goods and services, and as a store of value. The Covid-19 pandemic has changed the way some people shop. In response to social distancing guidelines, some people are shopping online, meaning fewer cash payments. The informal sector such as the marketplace and transport businesses actively rely on hard cash. The temporary closure of shops and restaurants, and the implementation of social distancing rules during the pandemic, led to significant declines in household spending. Dr Misaki Wayengera, Chair Ministry of Health Ministerial scientific Advisory Committee on Covid-19, advises business people who hold money often, to disinfect it using alcohol. Anything that moves between different hands is something to really look at. It is unrealistic to leave out the use of money. Advertisement  Avoid cash  In early March 2020, a World Health Organisation (WHO) spokesperson suggested that people should not use cash if possible, but then clarified that the WHO was not issuing a Covid-19 specific guidance with regards to using contactless payments. To some like Fred Muhumuza, an economist, cash is not a major transmitter of Covid 19. It cannot be avoided because the time we have been with Covid 19, we would have witnessed many deaths attributed to money as a big transmitter of the disease. It looks like the virus does not stay outside for long. It is transmitted easily through persons within a two-metre distance.  Experts suggest, more caution must be exercised while handling coins, as the virus could be resting on it for longer than on currency notes. The use of gloves and alcohol-based sanitisers (70 per cent alcohol) is advisable for people who have to frequently handle cash, for instance, shopkeepers. But even then, it is advised, that they do not touch their face, and dispose of gloves safely after use. Challenges to cashless  Peter Kawumi, the chair of Financial Technology Service Providers Association and country general manager Interswitch Uganda, justifies two challenges hindering the transformation to the cashless switch. The lack of tools to execute digital transaction. Therefore penetration is not yet 100 per cent.  In addition to the above, digital literacy is another factor that has delayed seamless payments. Kawumi says the country still has gaps as a financial service sector. Therefore, we have a lot of work to do in enabling people to be digital literate and use financial services on digital, Mr Kawumi says. The cost is another. It is still quite expensive to access financial services. It is a mix with the cost of mobile money transaction and the cost of data. For example, doing a transaction online could cost one a fee which wouldnt be the case if it was to make a physical deposit. Preferably people could opt for physical transactions of cash since it is cheaper. Kawumi thinks we need to follow the guidance of professionals. If you must use cash, wash your hands and sanitise. We are limited with options, however, we strongly advise a move away from cash.  There have been enablers to adopting the cashless system with mobile money but there is still work to do. The recent passing of the National Payment System Act and regulation should help to strengthen the sector in general but also help the consumers yield back from the providers. We believe it will be a significant step forward in driving financial inclusion, he adds. In reference to an online publication titled, Cash in time of Covid, understanding trends in the demand for banknotes, also informs critical decisions on the infrastructure needed to move cash through our economy. Cash is still an important payment method and a critical means of payment for many people. To ensure the smooth production and distribution of banknotes around the country, there is need for an efficient, resilient and sustainable cash system involving both the public and private sector. The future rate of growth in the demand for cash is uncertain and there are many variables that could influence both how cash is used and where it is used. Your finances  Nairobi  Covid-19 changing the way we shop and spend  There is no doubt that many of us were negatively affected by the Covid-19 pandemic. It is difficult to say just how deep this impact has been but what is certain and borne out by key data numerics is that consumers are more cautious on how they spend money  whether forced or by design  and opting for secure, easier and affordable channels. While previously the sector experienced slow uptake of e-commerce and e-payments, the pandemic certainly accelerated the use of digital solutions in a market where many have now embraced online shopping with payments facilitated via digital channels. The e-change witnessed is fast becoming the norm fuelling aspersions that e-transactions are here to stay. Trust in paying for goods and services via a click on a mobile phones USSD platform or bank app had quadrupled, prompting lenders to facilitate back-office integration allowing cashless transactions for purchases and payment for services received. Spending slowdown  The hard times have also introduced a new trend among merchants who offer discounts for their goods and services, making them attractive for customers to splash their hard-earned cash during the special sales. Despite this acceleration of trends, the current economic uncertainty has led to consumers being unwilling to spend on non-essentials to save money wherever possible. The 2020 Black Friday and Christmas shopping promotions did not yield much. There was a noticeable downturn in sales volumes compared to past years. Although there have been many negatives, Covid-19 has forced many individuals to adopt a fiscally prudent attitude in saving and carefully planning their medium-term finances. Banks have also suffered reduced card revenues due to low point-of-sale transactions, indicating that customers are swiping cards less often and are, instead saving. Benefits for online channels abound as customers reduce the risk of carrying cash around while retail chains save on costs incurred for bulk cash transfer to the bank. Business Daily