Cash and Coin Remain Viable Payment Options
Smart organizations recognize the need for money counter and coin counter solutions
Cash and coin aren't dead yet; just the opposite. According to a survey by the Federal Reserve last year, more cash and coin are in circulation than ever before, and cash represents the largest share of consumer transaction activity. The Feds tell us that of all payment methods, including cash, check, credit, debit, electronic and other, cash remains on top, with a full 31 percent of all consumer transactions.
That means the amount of currency is going to continue to grow. Here are some stats from the Feds:
- Amount of circulated cash: $1.4 trillion
- Growth of cash notes: 5.6 percent
- Growth of cash value: 7.4 percent
- Coins shipped from Mint in 2017: 14 million
What that means for financial institutions is, they should be prepared to continue to manage large volumes of cash and coin from consumer and business customers. Currency management is an issue that's not going away.
Similarly, for retail and grocery, it means to expect customers to be using cash for low-value transactions such as food, personal care supplies, general merchandise and gifts. People pay with cash for roughly half of all transactions of $50 or less. Cash management systems and self-service coin counters are key elements that will provide greater efficiency for employees and greater customer service for consumers.
Why the continued use of cash in this ever-digital society? A few ideas:
- Cash is universal.
- Cash is anonymous and untraceable.
- Cash is a foolproof way to protect your identity from being hacked during a breach.
- Cash provides payment finality.
- Cash enforces budgetary discipline.
Get prepared to handle to every-growing volume of cash and coin.
February 15, 2019