There is a perception that in 2022 and 2023 the currency ‘industry’ was a little flat, even lacking self-confidence, in the face of the fall out from the pandemic and the huge surge in digital payments as societies rapidly went online. The evidence of 2024 tells a rather different story.
Yes, there have been acquisitions, consolidation and closures, but also there have been clear signs of growth, investment and innovation.
So, what should we make of 2024?
In the last few years central banks and governments have focused on ensuring people and businesses have access to cash. This has continued but with it has come a new interest in safeguarding the acceptance of cash. The Netherlands, Belgium, Norway, Ireland, and Sweden have all, among others, passed or brought forward legislation covering cash access and acceptance, and the European Commission has made proposals about the legal tender status of cash. More US states are now considering legislation too.
All this is part of a new awareness of the threat to cash and a wide range of non- legislative responses. For example, the Bundesbank has started a new National Cash Forum, the Reserve Bank of New Zealand is running a community cash trial, in Spain Denaria has become an activist organisation advocating for cash.
The fall out of fewer cash transactions is lower use of coins, with knock-on effects for the minting sector which is already beset with enormous over-capacity.
In January we reported lower coin production orders in the US, in March news that the Royal Mint would no longer export coins and in August the decision that the Mint of Finland would close at the start of 2025. A range of stories covered the mixed fortunes of a wide range mints during the year, with some benefiting directly from these changes.
In the print sector some well-established names reported steps to mitigate against market changes – De La Rue is selling its Authentication business to Crane NXT, Authentix bought the security business of Meta Materials, SICPA and Koenig & Bauer announced restructuring changes.
On the other hand, IMBISA received its first euro orders, the Bureau of Engraving and Printing announced its investment in its new print facilities, SPMCIL reported strong growth, Orell Füssli reported improved results, China Banknote Printing and Minting reported a busy list of new investments in its businesses, and Crane NXT bought both Opsec and TruTag to enhance its diversification into the authentication business.
It is a reflection of the energy and competitiveness of the sector that the year saw a long list of new products brought to market.
Some were new – the ATKINA printing press range from Koenig & Bauer Banknote Solutions (KBBNS) and De La Rue and Authentix’s ASSURE taggant in polymer notes. Not to mention the developments from Bundesdruckerei with its eye-popping IGNIS house note pointing to how banknotes could look in the future.
Others were enhancements of existing products – new variants of Louisenthal’s Rolling Star® for threads and now patches and SICPA’s SPARK® Flow, Orell Füssli’s Escher, CCL Secure’s SPARTAN™, G+D’s BPS® C Evo®, IQ Structures and Hueck Folien’s NanoSwitch®, the BNXs platform from KBBNS, and more.
All this leaves banknote issuers with real choice and a wide range of expert companies with whom to work.
While the transition of every customer is welcome to polymer suppliers, the decision by the Philippines to issue an all-polymer series is a major development.
CCL Secure and De la Rue have long dominated the polymer sector, but they have not been the only producers. China now has its own polymer production plant and will be issuing the first product next January. Spectra Systems launched its polymer product in 2022, although it is not yet sold in the market. This year Q&T High Tec delivered its first polymer substrate for the production of the Vietnamese currency. Covestro has also launched a polymer substrate.
Launching and selling are two different things but, again, these demonstrate innovation and energy in this industry, giving issuers real choice.
Cash cycle players have responded to less cash and the need for efficiency. The major ATM players such as Brinks, NCR Atleos and Diebold Nixdorf have pivoted to become network suppliers and service providers for commercial banks. The utility ATM models of the Netherlands and Belgium are being used or investigated elsewhere in the world as well. CIT companies such as Loomis, Prosegur and G4S are part of this story too.
The result is both investment and innovation which is helping safeguard access to cash. Australia’s Armaguard take over of Prosegur’s business there, and what has happened subsequently in terms of the commercial banks having to step in and prop up what is now a monopoly in cash services, is evidence of what happens when banks, CITs and cash management companies do not get ahead of the challenges of less cash.
Almost every month we have reported on sustainability initiatives.
Whether composting unfit banknotes with BioBanknote, Crane and Blendpaper creating new paper products from banknote waste, KOMSCO’s new initiative to create consumer products, or G+D’s Banknote Fiber Extraction technology, real alternatives are now available to central banks for cotton banknote waste disposal.
Recycling of polymer waste is also top of the agenda, with some innovative solutions from De La Rue to support local upcycling into new products.
Orel Füssli has launched its BEES® software for carrying out lifetime assessments of banknote design options. Hueck Folien has achieved eco-neutral products, along with Kurz, CBPM and Louisenthal, who have all made huge strides to ensure holograms and threads are made sustainably.
At the Cash Sustainability Forum in June, the industry heard from a wide range of suppliers and central banks about a clear focus and real achievements on reducing the environmental impact of cash.
This has been a difficult year for a lot of organisations. There has been sadness at some of the changes. But there are really positive signs of life. An acceptance of the need to safeguard cash, a willingness to adopt new business models and investment in innovation and change.
