Retail Cash Management Market Expected to Reach $12.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Retail Cash Management Market," The retail cash management market was valued at $3.2 billion in 2021, and is estimated to reach $12.1 billion by 2031, growing at a CAGR of 14.5% from 2022 to 2031.

Managing and keeping track of banknotes and coins (cash) is critical in terms of retail sector operations and is also an integral aspect of both consumer transactions and relationships. Creating a thorough cash management plan is critical for improving employee productivity, providing outstanding customer service, and ultimately boosting profitability. Cash management solutions can hence enable retail sector businesses to boost their productivity by using automated cash storing and sorting devices in their regular day-to-day business operations. Furthermore, key factors that drive the growth of the retail cash management include the unavailability of a proper in-store workforce during the period of the COVID-19 pandemic aided in propelling the growth of the global retail cash management market. Moreover, the social distancing and sanitization policies implemented across various parts of the world further supported the growth of the retail cash management solutions market. However, implementation and maintenance costs of cash management solutions can hamper the retail cash management market forecast. On the contrary, advancements in technologies like big data and machine learning are expected to offer remunerative opportunities for the expansion of the retail cash management market during the forecast period.

Furthermore, The shift towards digital payments and mobile banking was driving the need for innovative retail cash management solutions. This included mobile apps, digital wallets, and contactless payment options, all of which aimed to reduce the reliance on physical cash. Moreover, retailers were working to integrate their various sales channels, including online, in-store, and mobile, into a seamless experience. This integration extended to cash management, ensuring that cash received through different channels was consolidated and managed efficiently.

On the basis of application, the balance & transaction reporting segment dominated the overall retail cash management market in 2021 and is expected to continue this trend during the forecast period. This is attributed to the increasing automation in the retail sector business and the growing demand for reliable balance reporting solutions. However, the cash flow forecasting segment is expected to witness the highest growth as demand for precise cash forecasting and management solutions are growing, which is expected to further fuel the growth of the global retail cash management industry.

Region wise, the retail cash management market was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to a high concentration of retail cash management technology vendors in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to its ongoing rapid digital transformation trends that are expected to increase the scope for retail cash management market trends in the region.

The cash management products with greatest loss were paper-based or tied to physical channels, while electronic and digitally enabled transactions experienced far less negative impact during the period of the pandemic. Moreover, as the adoption of new products and technologies are increasing, including further acceptance and utilization of virtual accounts, blockchain-enabled transactions, real-time payments and FinTech partnerships are essential for remaining competitive considering a rapidly evolving landscape. This in turn is expected to drive the retail cash management market growth.

Moreover, the government’s cash plans are being adjusted to reflect increased emergency spending, concurrent drops in revenues, and the financing of the crisis-related spending measures. The main task of the government’s cash managers is to ensure there is adequate liquidity to meet the government’s payment obligations as they fall due. In performing this task, the crisis poses several challenges, notably. Such factors are generating great opportunities for the growth of the retail cash management market size.

KEY FINDINGS OF THE STUDY

• By enterprise size, the large enterprises segment accounted for the largest retail cash management market share in 2021.
• By region, North America generated the highest revenue in 2021.
• By component, the solution segment generated the highest revenue in 2021.

The key players profiled in the retail cash management market analysis are ALVARA Digital Solutions GmbH, Aurionpro Solutions Limited, Giesecke+Devrient GmbH, Glory Global Solutions, NTT DATA Corporation, Nucleus Software Exports Ltd., Oracle Corporation, Sopra Banking Software SA, The Sage Group plc, and Tietoevry. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.