Although much has been made about the demise of physical forms of payment, recent consumer trends highlight the importance of cash counters. Cash is still a relevant method of payment, and businesses should not neglect consumers who want to complete transactions this way.
A variety of new payment channels have cropped up in the last few years, but they have not reduced the power of paper-based payments, according to American Banker. Citing data from the Federal Reserve, the article reported actual cash trends go against common thinking. For example, many people assume that young adults prefer to pay with credit or debit cards, but the research found individuals under the age of 25 are more likely to pay with cash than their parents' generation.
Merchants still need systems in place to process cash payments
The Federal Reserve study looked at the different ways consumers use cash. Even though cash was not the No. 1 channel overall, there were clear cases when it was the preferred payment method. For smaller transaction values, cash was used more frequently. There were certain purchase categories where cash payments were more common, such as food, entertainment, gifts for other people and transportation.
Additionally, cash was the preferred back-up choice when other options were not available, The Financial Brand stated. For example, of consumers who preferred to pay with their debit cards, the majority would choose cash as their second choice. In the wake of several high-profile data breaches at major retailers in the past year, consumers are somewhat more reluctant to use their credit and debit cards due to the risks. In fact, some people changed their purchasing behavior and shifted to using cash more frequently, the article revealed.
While other payment channels may detract from cash's total share of payments, retailers still need to accommodate customers who want to use cash. Many consumers may continue to be conscious about guarding their financial information, making cash a relevant payment channel. Money counters enable small businesses to create a better customer experience while increasing their back-office efficiency at the same time. Counting cash can be tedious for employees who have a variety of other responsibilities, but these systems make it quick and more accurate. Businesses can better meet the needs of their customers with cash counters.
May 30, 2014