Remote Cash Capture 2012 Market Update

Big Changes in a Growing Market
by Bob Meara, March 13, 2012
Industry Trends
North America


With the amount of cash in circulation still growing, remote cash capture is taking a bite out of the cost of cash acceptance among a growing number of merchants.

In a new, updated report, Remote Cash Capture 2012 Market Update: Big Changes in a Growing Market, Celent looks at the quickly growing service referred to as remote cash capture (RCC), which is the deployment of secure, validating currency accepting and recycling equipment (aka smart safes) at merchant locations coupled with information reporting and provisional credit mechanisms. Such equipment has been in use for over 15 years in the US as a means to improve merchant cash cycle control.

Since its inception in 1994, intelligent depository safes have enjoyed relatively slow growth. After five years of availability, barely 6,000 safes had been installed. Two armored couriers joined the fray early on, but growth remained anemic. The advent of bank provisional credit introduced among a small handful of banks beginning in 2006 ushered in much higher growth rates and gave rise to RCC as we now know it. This “game changer” led to a step-change increase in the rate of industry adoption. More are upon us now.

This report analyzes four additional game changers in the making that are altering industry dynamics. Celent expects growth of remote cash capture to accelerate from roughly 60,000 devices installed in 2011 to over 110,000 devices through 2015.

“RCC is innovative for the collaborative service delivery required to bring it about. Historically working in isolation, banks, safe manufacturers, and cash logistics providers are now collaborating to add considerable efficiency to what had been an antiquated and error-prone cash cycle in many businesses,” says Bob Meara, Senior Analyst with Celent’s Banking Group and author of the report. “But most solutions today are proprietary. An open systems model, among other game changers, is redefining the market.”

This report begins with a snapshot of the current state of cash payments in the US followed by a background in relevant cash logistics at both banks and merchants. The report then explores remote cash capture along with the value propositions for all parties in the value chain and analyzes the seismic changes shaping the market. Finally, the report compares solutions among cash logistics providers and hardware manufacturers selling directly to merchants and provides an outlook for future adoption of remote cash capture.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary


The State of Cash and Cash Logistics



Cash in Transit Provider Landscape


Cash Cycle Management



Financial Institution Cash Logistics



Merchant Cash Logistics



The Cash Control Cycle


Understanding Remote Cash Capture



Solution Landscape



Merchant Value Proposition



Cash Logistics Providers Value Proposition



Financial Institution Value Proposition


Game Changers


The Changing Solution Landscape



Hardware Solutions



Independent Software Solutions



Bundled Solutions


Opportunities and Outlook for Banks


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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