Most consumers prefer to make purchases with cash, checks
Despite the growing popularity of e-commerce, retail businesses may still want to hold on to their check processing technology and money counters. In fact, electronic payment systems haven't quite caught on as many industry experts initially anticipated.
Business News Daily cited a recent "Consumer Pulse" survey from the market research firm Chadwick Martin Bailey that found only half of current smartphone users have even heard of mobile payments technology. Instead, cash and paper checks continue to be the most reliable transaction methods for consumers. Houston Chronicle said many shoppers are more inclined to write checks at retail stores during difficult economic times.
Paul Stoddart, the managing director of strategy at VocaLink, a payment systems company, wrote in Banking Technology further explaining the reasons why mobile transaction technology has failed to dominate the retail market in recent years. According to him, consumers still feel strongly about the many conveniences that come with paying with cash or checks.
"When paying with cash, transactions are immediate, do not expose the payer to risks beyond the value of the transaction and are always the result of an active decision by the person making the payment," Stoddart wrote.
Check scanners and cash counters can help retail businesses determine daily sales numbers and streamline backroom processes as current consumer preferences continue to steer more toward traditional transactions.
October 30, 2013