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ALVARA | Digital Solutions

2024

Value transportation between tradition and modernity – an example of best practice

The IWS Group can look back on over 100 years of company history. Starting out as a security and locking company in Aschaffenburg at the beginning of the 20th century, the organization has steadily expanded its range of services. Today, this also includes cash and valuables services offered by IWS Industrie-Werkschutz GmbH. Those responsible rely on a tried and tested recipe for continued success: a mixture of traditional values and modern everyday helpers.

Focus on change

A partner for whom safety comes first. This is something IWS Industrie-Werkschutz GmbH can emphatically claim. Its many years of experience in working with savings banks, cooperative banks and private banks have certainly contributed significantly to this. But not only that: the organization does not rest on its laurels and proven practices. Standing still must be avoided at all costs. In view of the rapid developments in recent times, this is a sensible undertaking – especially for cash-in-transit companies.

In recent years, it is not only the wishes and needs of customers and employees that have changed. The demands on the service itself are increasing in complexity and societal trends such as the call for more sustainability – both privately and professionally – also need to be constantly taken into account. IWS Industrie-Werkschutz GmbH has long been aware that these issues can be managed more easily with digital support.

Cash handling – systematically automated

More efficient workflows, associated cost savings and transparent processes: Goals that cash-in-transit companies often still dream of today. They cling too closely to the familiar manual processes and continue to rely on paper documentation – whether for customer receipts or monthly invoicing. IWS abandoned this scenario several years ago and implemented the cash center software from ALVARA | Digital Solutions.

Last year, the next step was imminent: IWS Industrie-Werkschutz GmbH introduced the new Pecunia Cash Center software from ALVARA. This opened up further automation potential. Today, the long-established company maps all WTU processes digitally and automatically, thus achieving even more security and transparency in its day-to-day work. But this is just the beginning of the list of benefits:

  • – IWS Industrie-Werkschutz GmbH benefits above all from the numerous functions relating to efficient route planning, secure container logistics and transparent mobile ticketing.
  • – Pecunia is intuitive. This ensures that employees can use it quickly.
  • – The cash center software can be expanded on a modular basis. The focus is always on digitalization and automation.

The tried-and-tested benefits, such as the precise control of access rights or participation in the CashEDI process via Pecunia, remain unchanged.

More than one solution

IWS Industrie-Werkschutz GmbH has taken advantage of the modular structure and enhanced the Pecunia solution with individual add-ons. Fakturio as a solution for automated invoicing reduces the manual workload and is less prone to errors. This allows the value-added services company to maintain an overview of the services it provides and guarantees fast invoicing.

Intervention services are also an important part of the organization. Especially when a faulty ATM is reported, all those responsible want to be able to react quickly. This is why the company also uses Pecunia intervention management. The MobiTick logistics app from ALVARA specializes in the rapid processing of service and intervention orders. The head office can use it to assign new orders in the form of tickets to drivers on the route. At the same time, they are given a tool with which they can log causes and implemented measures on the spot. As all functions are linked to each other, automated invoicing via Fakturio can also be started in this process.

Conclusion

Das Bargeldhandling hat oftmals einen verstaubten Touch. Doch die IWS Industrie-Werkschutz GmbH zeigt, dass es auch anders geht. „Mit dem Umstieg auf Pecunia und somit unserem nächsten Schritt in Richtung Automatisierung gewinnen wir weiter an Effizienz, Transparenz und letztlich Sicherheit. Alle drei Punkte verhelfen uns, eine qualitative Dienstleistung anbieten zu können – gespickt mit traditionellen Werten und modernem Zeitgeist”, so Alexander Gresser, Geschäftsführer der IWS Industrie-Werkschutz GmbH.  Cash handling often has a dusty touch. But IWS Industrie-Werkschutz GmbH shows that there is another way. “By switching to Pecunia and taking our next step towards automation, we are gaining further efficiency, transparency and ultimately security. All three points help us to offer a high-quality service – peppered with traditional values and modern zeitgeist,” says Alexander Gresser, Managing Director of IWS Industrie-Werkschutz GmbH.

Would you like to digitize and automate your WTU processes? We would be happy to take the path together with you!

 

What euro banknotes have in common with an 8 km journey

Paper production, transportation, electricity consumption for authenticity checks and the operation of ATMs or waste products generated during processing by cash-in-transit companies and credit institutions: This list suggests an huge ecological footprint for banknotes. But if you think about the sometimes worn-looking bills in your own wallet, you will quickly find a counter-argument. Banknotes have a long lifespan. A study by the European Central Bank shows what the bottom line is in terms of their environmental footprint.

Regularly in view: Environmental impact

At the end of 2023, the European Central Bank (ECB) published a study on the environmental impact of euro banknotes. The focus was on the entire life cycle of a banknote, from the procurement of raw materials and production to the distribution and circulation of euro banknotes and their incineration at the end of their life. In order to evaluate this network in a meaningful way, the ECB relied on the European Commission’s Product Environmental Footprint (PEF) method. Its advantage: the standardized approach for different products and activities allows comparisons to be made. More on this later.

For the first time, the European Central Bank has not scrutinized its banknotes in recent years. Back in 2004, the bills had to undergo a life cycle assessment. The results at that time showed initial potential for optimization, which those responsible implemented, for example, by switching to sustainable cotton for the banknote paper (Sustainable Cotton Program). However, the two studies cannot be compared as they are based on different research units and methods.

A question of comparison

But what was the final result of the study, which refers to the year 2019? What is the size of the ecological footprint of euro banknotes? The answer: quite a small one. The comparisons already mentioned help here. The environmental footprint resulting from the use of banknotes per person and per year is equivalent to an eight-kilometer car journey. The environmental impact of EU banknotes accounts for only 0.01 percent of the annual consumption behavior of an EU citizen.

To return to the scientific side of the equation:

  • – The environmental indicator that can be calculated using the PEF method is 101 µPt (micropoints) for the annual cash payment per person in the euro area.
  • – The total annual environmental impact per person is 1,003,686 µPt.

This comparison is also made clearer by the journey metaphor. The annual environmental impact of an EU citizen can be converted into 79,575 kilometers of driving, which is almost equivalent to two trips around the world.

The question of whether banknotes are more environmentally friendly than other means of payment has not yet been resolved. Comparable analyses of alternative payment options are lacking here.

Cash: More than ecological!

However, the ECB is not resting on its laurels. The aim is to continue to offer cash as securely and sustainably as possible while ensuring its availability and public accessibility. For all those who are happy to hear that cash performs well ecologically: It can do even more! Security, transparency and efficiency can be easily integrated into cash management with the right digital software support. Whether at the point of sale, when it comes to cash recycling or cash logistics and traceability – there are many useful starting points.

Environmentally friendly, secure, transparent, efficient: discover what cash can do!

Interesting facts: billions of Deutschmarks still in circulation

On June 21, 1948, the Deutschmark replaced the Reichsmark and Rentenmark. More than 50 years later – on January 1, 2002 – it suffered the same fate and had to give up its role as the only legal tender. That was the birth of the euro. However, the Germans have not yet decided to let the currency disappear completely.

A brief history of the Deutschmark

After the war, a clear trend emerged: Germany was heading for an enormous economic crisis. The Reichsmark existed in large quantities. But there was little that citizens could have bought for it. Instead, another “currency” was established – the cigarette currency. The Allies had to act – and they did.

As early as 1946, they made plans to focus on economic unity in Germany despite the prevailing occupation zones. In the end, this plan was only partially successful, as the Soviet Union smashed it for the eastern zone. As a result, the Deutschmark was only issued in West Germany in 1948. In reunified Germany, it initially remained the only legal tender. Until the euro appeared on the scene.

“100 euros, that’s 200 Deutschmarks!”

However, the Deutschmark, which the German population always associated with the economic boom, continues to play a minor role – at least in the minds of many. Even 20 years after the introduction of the euro, the Deutschmark has not been forgotten. Quite the opposite. According to a Forsa survey commissioned by the television stations RTL/NTV, more than half of the 1,005 respondents stated that they still convert larger euro amounts into Deutschmark prices. The maths example is familiar: the euro price is simply doubled.

A third would even like the old currency back. This is also because there is a perception that life in Germany has become more expensive with the introduction of the euro. At least that is how 69% of participants felt.

Over 50 million Deutschmarks were exchanged in 2023

It is hardly surprising that many Germans have preserved a memory and have kept the odd Deutschmark for nostalgic reasons. However, some bills and coins have certainly also been lost, which are gradually reappearing and are constantly being exchanged. However, the amount of the former national currency that found its way back to the Bundesbank last year is surprising.

From January to November 2023, the central bank exchanged a good 53 million Deutschmarks for 27 million euros. This makes last year the second year in a row in which the amount exchanged increased. According to the Bundesbank, there are probably 12.2 billion Deutschmarks still in circulation, meaning that an exchange value of a good 6.24 billion euros is waiting to be paid out. It is doubtful that these coins and bills will ever find their way into the Bundesbank – on the one hand because of the collectors. On the other hand, the Deutschmark was valued worldwide as a reserve currency. The Bundesbank therefore assumes that a large proportion of the stocks are still held abroad.

Whether Deutschmark or euro – cash needs to be well managed. That’s why we provide retailers, financial institutions and cash-in-transit companies with the right software for their cash logistics. Curious? Then please contact us!

How cash will be used in the future

Three scenarios for the future of cash

Last year, the Deutsche Bundesbank launched the National Cash Forum initiative. Within this framework, the participants want to find answers to a question that has been on the minds of various cash stakeholders for a long time: How can easy access to cash be maintained for everyone? This requires an idea of what the future of cash might look like. Three scenarios provide insights.

Current cash study – with a big goal for the future

Studies on the use, distribution and acceptance of cash are published regularly. The tenor: alternative means of payment are becoming more and more popular. But cash is still not so easy to shake off. The German Bundesbank is now taking a new approach. In its study, which was conducted by the service company VDI/VDE Innovation + Technik and the opinion research institute Sinus between February 2022 and November last year, scientists, various cash stakeholders and social organisations had their say. ALVARA also took part in the study. Robert Wolf, Managing Director of ALVARA | Digital Solutions, provided valuable insights as an interviewee in the cash stakeholder analysis – read more on page 77. The study is also based on literature research and a representative online survey.

The central question: How will cash be used in the future? The Bundesbank is literally rolling up its sleeves. It wants to get an idea of how cash could be integrated into our society and economy in the future in order to derive recommendations for action. After all, cash plays an important role from various perspectives and should be preserved in the future.

The world of payments in 2037

For this reason, the study analyses current trends and provides an outlook on three payment worlds. All three scenarios have one thing in common: in none of the futures does cash disappear completely, and in two of them it is even almost as important or better than alternative means of payment. This bodes well for finding ways to maintain its attractiveness, acceptance and availability.

Scenario 1: “Hyper-digital payments world”.

Modernisation, digitalisation, innovation – this trio, which will experience a boom in the 2020s, has ushered in the hyperdigital payment world. Cash plays a largely secondary role. Coins and notes are rarely used for payments at the checkout or between two individuals. Even in the former bastions of cash, you will search in vain. Farmer’s markets, flea markets and restaurants are completely cashless and rely on mobile payment terminals.

A development that is seen as unfavourable for the over-80s. Data protection and the complicated handling of non-cash means of payment are at the centre of their anger. But there is no room for these concerns in the political debate.

Online retail is booming. Even goods that used to be bought locally, such as food, are now being bought online at lower prices. Bricks-and-mortar retail is becoming more technologically mature. Pick-&-go systems, where goods are recorded as you shop and paid for quickly at the end using an app, or self-checkout systems with a wider range of functions make shopping convenient. Lightly staffed or unstaffed stores are the new standard, as there is little need for staffed checkouts. There is no difference for stores in rural areas. Here, too, unmanned supermarkets are on the rise.

In the face of increasing digitalisation, governments and companies are focusing on protective measures. Cyber attacks that harm society must be contained. Providers of cashless payment solutions are particularly targeted by attackers.

Scenario 2: “Cash renaissance in the payments world”..

As the use of the term “renaissance” suggests, cash experiences a revival in this future scenario. This was already evident in the early 2020s. The coronavirus pandemic, the war in Ukraine, climate change and the boom in artificial intelligence did not leave German society unscathed. People longed for independence (from other countries), solidarity (for their own economy, especially local shops) and a right to an analogue life (due to the perceived dangers of AI).

In this context, trust in non-cash means of payment declined. Cash, on the other hand, was associated with sovereignty, independence and differentiation from the mainstream of the time, and thus became a lifestyle commodity. Gradually, the benefits spread to many social classes. The abolition of the 1 and 2 cent coins and the introduction of rounding rules also contributed to this by the 2030s.

The trend towards shopping at local retailers continues. As they already offered cash payments in the past and did not switch to cashless means, paying with coins and notes has become a matter of course. However, some large retail chains with digitally savvy customers had already stopped accepting cash payments by the early 2030s. The EU regulation and the German government’s recommendations to accept cash payments prompted them to switch back. All supermarket chains now offer manned checkouts and self-checkout systems again, with at least one unmanned checkout also having a cash payment module.

Savings banks and banks continued to close and ATMs were dismantled, but at a slower pace. This means that access to cash will still be available in 2037.

Scenario 3: “Disappearing hybrid payment world”.

Traditional milieus, the middle class or conservative-establishment milieus – society has become more divided in the 2020s. According to the study, this trend will continue into the next decade. Milieu affiliation influences preferred payment method. Mistrust of digital providers and the state, economic restrictions and disadvantages, or the value of having a quick overview of one’s own spending will continue to drive people into the arms of cash.

However, contrary to previous studies, age no longer plays a role. This is because all age groups are aware of digitalisation. It is now much more the attitude towards the digital world that determines preferences. Informed and sceptical consumers still prefer cash. Convenient, risk-averse shoppers, on the other hand, prefer cashless payment options.

People still use coins and notes for tips, gifts and small amounts. Across all social groups, they value cash as a store of value. However, it can no longer be said to be the only means of inclusion. Non-cash means of payment have been enhanced and, with improved voice input and output technologies, offer a good alternative for people with motor or visual impairments. Parents are increasingly turning to apps that allow their children to spend money under control.

Different payment preferences are also evident in bricks-and-mortar retail. Checkout equipment adapts to customer needs. There are stores with staffed checkouts, unstaffed stores and stores that rely on a combination of staffed checkouts and self-checkout systems. Retailers who are aware of their customers’ preference for cash will offer at least one self-checkout with a cash payment function.

However, the acceptance of cash in retail is declining for one simple reason. The cost of supplying and disposing of cash is a burden. Private banks, co-operative banks and savings banks are closing branches and the ATM network is being further reduced, which has an overall impact on the cash cycle.

Conclusion

I’m sure we all have our own personal predictions about where cash is headed. With 2030 not too far away, it will soon be clear which payments world will win the race. But in the meantime, financial institutions, retailers and value-added service providers should take action. They already face challenges that make cash logistics inefficient, non-transparent and expensive.That’s why our motto is: cash players should prepare for all of the above – and more. Digital solutions that simplify cash management, while allowing for modernity and efficiency, will pave the way for the future.

Want to set the course for a modern cash future now? We can help you!

ALVARA | Digital Solutions invites retailers to this year’s CashDialogue Retail in Karlsruhe

Leipzig, 05.03.2024. ALVARA | Digital Solutions is organising the CashDialogue Retail on 25 April 2024 from 9 a.m. to 2 p.m. For several years, the leading European provider of track & trace software solutions for the cash cycle has been offering a platform at the event that focuses on the exchange of information about new opportunities in retail. This year, the workshop format will remain the same. But one thing has changed: For the first time, CashDialogue Retail will not be held in Leipzig. The venue in 2024 will be the dm-dialogicum, the company headquarters of dm-drogerie markt GmbH + Co KG in Karlsruhe. Participation is free of charge. The deadline for registration is 11.04.2024.

Retailers today face a wide range of cash logistics and cash management challenges. In order to keep pace, it is important to work together in dialogue to identify problems, discuss established solutions and find new approaches. To this end, current and important topics such as developments in cash management, the increasing digitalisation and automation of cash processes and the exchange of information on optimisation potential will be on the agenda. One aspect will not be missing this year: Artificial Intelligence. One of the focal points of the event will be the AI-supported recording of safe stocks and the automated ordering of change.

"A lively discussion forum for retailers. That was the wish with which we launched our CashDialogue Retail . After short keynote speeches by our ALVARA experts, participants are invited to share their practical experiences, suggest solutions or ask questions that are currently on their minds," says Steven Schwarznau, Managing Director of ALVARA | Digital Solutions. "As every year, the doors are open to existing customers, new customers and all interested parties.

In addition, ALVARA | Digital Solutions is offering an exclusive event for existing customers on 24 April 2024 from 12 noon. Together with ALVARA, participants will take a look at the latest releases, innovations such as the Manager Cockpit and enhancements to digital driver testing. Artificial intelligence will find its place in the form of automated counting of coin rolls via the ICC app. "We also want to provide our existing customers with added value. That's why we came up with the idea of holding an event before the public CashDialogue Retail on 25 April 2024 that focuses on day-to-day business: Where have we adapted our solutions? Which developments do we meet? And how does the innovation work in concrete terms?" explains Steven Schwarznau.

Two events. One goal. CashDialogue Retail  is designed to give existing ALVARA customers, potential new customers and interested retailers the opportunity to find solutions to current problems. For future-proof, efficient and transparent cash management.

More information on the ALVARA Cash Dialogue and the registration form can be found here:
https://www.google.com/url?q=https://www.digital.alvara.eu/de/bargelddialog-fuer-den-handel/&sa=D&source=docs&ust=1708082574266409&usg=AOvVaw115cIseeEfdBzgKln6g9A3

Further information:
https://www.digital.alvara.eu/de/
https://www.digital.alvara.eu/de/interactive-cash-control/

About ALVARA | Digital Solutions (a brand of ALVARA Holding GmbH)

ALVARA | Digital Solutions is a brand of ALVARA Holding GmbH. The group is a leading European provider of track & trace software solutions for the cash cycle and logistics - from cash processing, monitoring and process automation to clearing. With its customised solutions for recording and tracking payment flows, the group enables retailers, cash-in-transit companies and financial institutions to optimise their cash management processes and reduce their process costs. ALVARA | Digital Solutions' customers include retailers, cash-in-transit companies and banks worldwide. www.digital.alvara.eu

Press contact:
ALVARA | Digital Solutions
(a brand of ALVARA Holding GmbH)

Robert Wolf (Authorised signatory)
Querstraße 18
D-04103 Leipzig

Phone: +49 341 989902-00
Fax: +49 341 989902-89
E-mail: info@alvara.eu
Internet: www.digital.alvara.eu

Contact for press enquiries:

 

FUCHSKONZEPT GmbH
Birgit Intrau
Kastanienallee 10
12587 Berlin

Phone: +49 30 65261148
Fax: +49 30 65261149
E-mail: kontakt@fuchskonzept.com
Internet: www.fuchskonzept.com

Discounter and supermarket shopping 2.0: What’s changing at the checkout

Many shops now offer their customers alternatives to the traditional checkout, whether it’s for sportswear, DIY supplies, or furniture purchases at a well-known Swedish furniture store. In Germany, the use of self-checkout terminals and mobile self-scanning systems continues to grow. The food retail sector is also expanding in this area, demonstrating that the solutions already known are just the beginning.

Stationary and mobile – digital solutions on the rise

Companies are increasingly integrating self-checkout solutions into their shops to provide additional customer service, shorten waiting times and eliminate tedious processes such as repacking goods at the checkout. Our ALVARA Self Service Kiosk Manager offers intuitive usability for customers, making the switch to digital solutions easy.

According to the EHI Retail Institute’s 2023 market analysis, there has been significant growth in this area over the past two years. In 2021, 2,300 shops used the new approach, which increased to over 5,000 shops in 2023. The analysis excludes pilot and test stores, making further expansion realistic. The development can be divided into two distinct offerings. 4,270 shops offer stationary self-checkout tills to their customers, while 2,150 shops use mobile self-scanning systems. Additionally, 1,400 shops offer both alternatives to their customers.

Compared to the stationary self-checkout solution, where goods are scanned and paid for collectively at the end of the purchase by the shopper themselves, the mobile self-scanning variant relies on customers using handheld scanners, shopping trolleys with scanners, or an app on their own smartphone to record goods during the purchase. Self-checkout alternatives are commonly found in food retail (60%), drugstores (15%), DIY stores (15%), furniture stores (2%), and other shops (7%).

Shopping 2.0 in the food retail sector.

However, the technologies that have been used so far – stationary self-checkout and mobile self-scanning – are still at an early stage of development. Discounters and supermarkets have been competing with each other for several years by opening new test shops to evaluate and exploit the potential of these technologies. The goal is to make shopping as convenient and intuitive as possible.

Last year, Aldi explored the trend of artificial intelligence by implementing it in their checkout process. The company discovered how to use technology to create added value for customers. With the help of AI and cameras, shoppers can now easily check out fruits and vegetables without having to navigate through an extensive list. The system can recognise the products in a matter of seconds.

Rewe is testing a new shopping model called ‘Pick&Go’ in scattered pilot stores in Cologne, Berlin, and Munich. This model eliminates the need for scanning and checkout processes, saving customers time. To use this model, customers need to download the REWE Pick&Go app on their smartphone, create an account and enter their payment method. At the entrance, they can scan the QR code on their mobile phone to start shopping. Customers can take products from the shelves as usual or return them if they are not needed. The difference is that a camera records the items and the bill is settled via an app after leaving the shop.

This provides a new shopping experience that eliminates the biggest annoyance of queuing at the checkout. It is a balanced approach that benefits both customers and employees.  Retailers emphasize that despite the new technology, they are not reducing staff.

Optimising Customer Experience at the POS for SMEs

For smaller shops, bakeries, direct producers, or farm shops, improving the customer experience may seem like a distant goal. However, they can still benefit from technical support to enhance the customer experience. Modern checkout systems offer many advantages. For instance, our ITR checkout can optimise checkout processes, speeding up operations. Additionally, returns management for undecided customers and product allocations are expedited. The text should also adhere to conventional academic structure and formatting, with clear and concise language and precise word choice. Customers can also pre-order products, resulting in reduced waiting times.  The waiting time for customers is reduced.

If you do not wish to charge your device while on the way to shopping 2.0, let us work together to find a suitable solution.