March 2, 2024

While digital retail sales have spiked during the coronavirus pandemic as private customers spend more time online for money, cash is still king, according to the Brinks CEO.

Doug Pertz, CEO of the cash management firm known for its money-carrying armored trucks, told CNBC’s Jim Cramer Tuesday that the data shows that cash in circulation in the U.S. economy is even higher than it was before the pandemic.

“Potential investors confuse that the cash is going down,” but “the strength of the cash is just as strong as before, and the amount of the cash [used] in business is just as strong, “he said in a Mad Money interview.

Despite the growing popularity of digital transactions in an increasingly contactless world, physical money remains a mainstay for personal retail purchases. The results have not changed significantly compared to the previous year, explained Pertz.

According to information from the Federal Reserve, cash in circulation is 16% higher year-on-year than the mid-single-digit annual average growth rate for the past three decades.

Additionally, 35% of brick and mortar purchases in the US continue to be made with cash, according to the company.

Brinks said he processed 6% more cash through his system than in previous years.

“That clearly indicates that cash is not going away,” said Pertz.

Brinks posted fourth quarter and full year 2020 results before the stock market opened for trading on Tuesday. During that session, shares traded more than 6% to $ 80.86. The company beat analysts’ estimates for the quarter, posting revenue of $ 1.02 billion and earnings per share of $ 1.64. Sales were 9% up on the same quarter of the previous year. It was Brinks’ best quarter of growth since 2018.

Total annual revenue of $ 3.69 billion, little higher than the company’s 2019, was hurt by a decline in revenue in the first half.

However, Brinks sees a future in digital cash management. About a third of brick and mortar retail stores continue to do cash, and Brinks wants to offer an integrated solution, Pertz said.

The solution can help retailers convert physical cash in-store to digital form, much like digital cash providers do for debit and credit cards in payments.

“We believe we can offer this digital cash management solution, and that’s where we come next,” he said. “This is where we’re going on an integrated basis. We believe the solution can really make a difference and that there is a huge untapped, untapped market in this area for cash management.”