The three and a half million football fans heading to Brazil for the 2014 FIFA World Cup could have a "real" problem on their hands if banks aren’t prepared. Aside from public transport and services, the region is also working overtime to meet the financial demands of visitors, writes Micki Nguyen
As fans from around the world flock to the tournament, the demand for cash is expected to rise, particularly in the recently developed areas hosting World Cup activities. Making sure World Cup fans visiting from around the world can access their cash creates a logistical challenge for banks, ATM service providers and others in the cash supply chain.
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The role of cash
Despite the global rise of mobile and other payments, cash use remains high in Brazil. 65% of Brazilians prefer to pay with cash over other payment methods, according to research by Boa Vista Services. In Brazil, more than half of the population receive their salaries in cash. It’s no surprise that concession and retail vendors at the World Cup stadiums in Brazil only accept Visa, and of course…cash. Fans traveling to the stadiums to cheer on their favourite teams may find it hard to get around using a credit card as most small businesses and cab drivers only speak the universally accepted payment language of cash.
The importance of cash at major events was amply demonstrated at the London 2012 Olympics where a number of ATMs were not available at Olympic venues in a push towards creating a "cashless" event, meaning that some venues had no cash points at all. This policy backfired, however, at Wembley Stadium when 80,000 spectators were left unable to pay by card, with just two ATMs among them.
With all eyes on the Brazil in one of the world’s largest stages, cash should not be the payment method that fails.
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By GlobalDataCoping with the event
Even with one of the largest ATM networks in the world with over 160,000 ATMs, the tournament will put pressure on Brazil’s cash supply chain and distribution as visitors seek to stock up on cash. Banks in Brazil must intelligently forecast and respond quickly to get cash in the hands of fans to avoid the potential reputational risk that could come with running out of cash.
Intelligent planning, communication and collaboration were critical for the banks in the UK to manage the unprecedented challenges of providing cash to patrons of the 2012 Olympics in London. Brazilian banks can learn from previous host countries of major events and develop cash management strategies to keep up with anticipated demand.
Getting cash to customers at the right place at the right time means collaborative cash forecasting and risk management strategies among banks and service providers. Scheduling deliveries, for example, to take place at night and increasing security measures is necessary to deter criminals seeking to take advantage of predictable cash travel times. At an event where crime is a concern for visitors and organisers alike, it is important to ensure the supply of cash is safe and stable.
ATM connections in the region are improving but visitors will need to look for Visa, Mastercard, Cirrus, and Maestro logos, to ensure compatibility. Visitors to Brazil should also be extra vigilant of their surroundings and check ATM equipment and the area around ATMs for anything unusual. The good news is that the widespread adoption of EMV card technology (chip and pin) in Brazil should help alleviate card fraud risk. Even if all ATMs were connected to a global network, the arrival of so many fans for the World Cup would still put a strain on the cash and logistics infrastructure.
Banks need to act now to proactively put cash management strategies in place will ensure fans can easily access cash no matter when or where in Brazil. With visitors from the around the world flocking to Brazil, banks need to re-think their cash and device management strategies to make sure cash availability is not an issue, particularly with the Olympics just around the corner.
Micki Nguyen is director of product management, cash and logistics at Fiserv
