Money counting machines are very important devices that are used by businesses and financial sectors across the globe. Invented in the 1920s, these machines are used to count and separate different currencies based on their characteristics. These money counting machines have become an essential part of financial organizations. It is an unavoidable mechanism in the era of counterfeit money.
How did this machine come to the mainstream market?(Including why people needed them and who made them, in which country, and how was the public response)
Like any other invention, the money counting machine also has a history. According to the sources, money counting machines were first launched in the United States in the 1920s. The main motto of inventing these machines was to eliminate human errors in the financial sector. The first machines were produced by the Federal Bill Counter Company of Washington, D.C. They designed these machines in a way that they could increase the efficiency in the work process of the Federal Reserves Bank. Back then, banks and other financial sectors were completely dependent on human calculations, responsible for several errors. These machines efficiently eliminated those errors by automatic money counting. According to some other sources, the first recorded machine was developed by Zhi Tian Sie in 1958 in China. He was a small banker who decided to develop it for a competition where he won the third prize. Though these were the initial stages and technologies of money-counting machines, modern civilization doesn't use any of these technologies. Nowadays, we use the technology that was developed by Tokyo Calculating Machine Works of Shinagawa, Tokyo. These advanced machines were introduced to the market in 1962. This was the first time money counting machines were introduced as a separate market. The market was small back then as it was mainly located in China and some parts of the United States.
These machines became mainstream after computerized friction note counters were introduced to this market in 1981 in the form of the REI High-Speed machine. These machines were able to count 72,000 notes per hour, and unlike the previous technology and mechanism, these machines eliminated any kind of manual interruption. After that, money counting machines became famous across the global market, and the market that was only located in China and the United States started to expand across the globe. Along with technical advancements, these machines also became more advanced as several new features were added to them, including some security features such as ultraviolet ink, magnetic ink, note density, magnetic strip, etc.
In which countries are these machines used the most?
These money-counting machines are used across the globe as nowadays it has become an inseparable part of financial and business organizations. These machines are widely used in the countries like China, Thailand, South Korea, Japan, Vietnam, the United States, India, and England.
Which countries are the biggest exporters of money counting machines?
Reports indicate that the top 3 money counting machine exporters across the globe are China, South Korea, and Thailand. According to Volza's Global export Trade data of Counting machine, China is reported to have the maximum share with 21,371 shipments, followed by South Korea with 13,426 and Thailand in the 3rd spot with 8,515 shipments.
On the other hand, China and India are the key markets for currency counting machines in APAC. If we talk about the largest importers of money counting machines approaching the globe, we can mention the United States, India, and Vietnam.
The recent market of money counting machines
The recent market of money counting machines is going through some challenges. Though we can see that despite those challenges, the market is blooming, it also should be kept in mind that the paradigm of financial transactions is also shifting across the globe.
There are three recent trends that affected the market for money counting machines. They are mentioned below
- The growing need for weight-based currency counting machines as the global attention to polymers is convincing governments of several countries to implement plastic bills. Polymer banknotes are much more durable, approx 2.5 times more than the present cotton-based paper notes.
- Increasing the use of multi-currency forex cards as these cards decrease the need for money counting machines. These are widely used by people across the globe, especially travelers who use these cards for hassle-free shopping.
- Digitization of payments is also a factor affecting the market of money counting machines as the trend of UPI and cryptocurrencies reduces the requirement of money counting machines which can affect the market in the long run.
Another point should be mentioned as it is also a factor that has affected the market of money counting machines badly. The pandemic promoted touchless ( or cashless) transactions, and people across the globe became more dependent on digital transactions and transactions by credit or debit cards. It has also affected the overall market of money counting machines. You can see the estimated market of these machines and the impact of Covid 19 in the chart below.
The global market value of money counting machines was around $255.20 million in 2016, and according to the reports published in 2021, the market has faced amazing growth, and the market value of money counting machines was around $300.05 million dollars in 2021. According to the market analysts, the market share of currency counting machines is expected to boost by USD 62.11 million by 2025. It is also anticipated that the market's growth impetus will speed up at a CAGR of 4.12%, and it will decelerate at the CAGR of 14% by 2025. According to the statistics of 2016, BFSI is the major contributor to the money counting machine market with 63% shares. Statistics also indicate that digital money is expected to account for something between 20% to 25% of global transactions by 2023, which is also a challenge to the global market of money counting machines. It is also anticipated that the market will encounter a growth of around $373.27.
The market for money counting machines is still blooming but we can say that the future of this market has some uncertainties. One thing that everyone has to agree on is that these money counting machines are an inseparable part of business and financial organizations where currency bills are still used.