Despite claims to the contrary, cash remains king as consumers still rely on cash as their primary form of payment for gifts, food, personal care, automotive, entertainment and transportation services. So, the question is: with so many “more convenient” options available, why do people continue to rely on hard currency?
1) Security: As demonstrated by continued security breaches at popular retail establishments, the more technology becomes involved in payments, the more opportunities criminals have to access crucial personal information. As a payment option, cash presents a level of security not found with credit, debit or digital payments.
2) Budgeting: The use of cards or digital payments has been proven to disassociate individuals from the amount of money they are actually spending. An additional dollar or two here, a few more cents there … it adds up over time and can eventually break the bank.
Experts suggest that consumers use cash for everyday expenses in order to develop a better connection between expenses and budget limits. Cash provides a visual cue for consumers, helping them to remain more aware of how much they have spent and exactly how much they have left. When the cash is gone, the spending stops.
3) Anonymity: As consumers have begun to discover, online shopping and electronic payments contribute to “big data.” The result of this is more advertising directed to the individual based on past purchases.
While it’s not possible to pay online with cash, using it instead of other forms of payment for transactions at brick-and-mortar merchants means that consumers can keep more of their spending information to themselves.
4) Convenience: Debit, credit and digital payments have a major drawback — they’re not all accepted at all locations. Retailers generally use signage to to let customers know which card brands they accept. But with digital payments and EMV, non-options have become even more confusing.
While payment options have become plentiful, payment platforms can fail to provide the security, budget control, anonymity and convenience that consumers can depend on when they choose cash.
As long as the demand for cash exists, consumers will need access points through ATMs. Learn how to select the right thermal paper supplier for your ATM paper, or contact us to discuss your needs or receive a free quote.