Dual-purpose cash and check scanners still an integral part of business strategy
Although it's common for people to suggest that cash is no longer important to the average consumer, businesses still need dual-purpose cash and check scanners to manage a variety of payments. In fact, a recent report from the Federal Reserve's Diary of Consumer Payment Choice found that consumers use cash more frequently than any other form of payment, especially for smaller purchases. Additionally, some individuals who don't have access to traditional banking services rely on cash as a primary payment channel.
While cash is often reserved for lower-value transactions, it accounts for a significant frequency. Cash was used in one-third of purchases for products that cost $10 or less. The average consumer used cash for 40 percent of his or her transactions in 2012. Debit cards were at 25 percent and credit cards were 17 percent of payments. Mobile payments were less than 0.5 percent.
Cash still a popular payment choice
Most interestingly, the report found that cash is still popular among consumers, even when other payment choices are available. The most common cash purchases were food and personal care supplies. People used cash more than half the time when buying items in this category.
Thirty percent of consumers reported that they prefer to pay with cash. Although many retailers are racing to implement the means to accept mobile and electronic payments, it's still important to offer customers the option to pay with cash. Consumers want to have a choice of how they pay, and the findings in the report indicate that cash is still a significant concern.
In fact, younger consumers are more likely to prefer cash payments than older shoppers. However, older consumers were more likely to want to pay with checks. The preference for cash isn't consistent across different demographics and income levels, which highlights the importance of businesses offering choices for how customers pay. All age groups were found to use cash more often than previously thought. If a business caters to a diverse customer base, it's essential not to alienate consumers who wish to pay with cash or checks.
Dual-purpose cash and check scanners can help small businesses accommodate a wide variety of consumers. Ensuring that customers can pay through the channel of their choice can boost satisfaction with the company. This is a beneficial customer retention strategy for small businesses. Implementing new systems can also improve back-office efficiency.
May 21, 2014