Why consumers continue to use cash
The digital age offers electronic payment options that many consumers are taking advantage of, but not all are adhering to this trend. Cash is still very much used across the nation, meaning grocers and financial institutions should continue to invest in a cash counting machine. The reasons for cash use vary from person to person, but the fact that it is still heavily used should be enough to show banks and retailers how consumers rely on it in their everyday life. While there are advantages to credit and debit card payments, people are finding that cash still has its own benefits in a highly electronic world.
Credit and debit card transactions are convenient and easy, yet sometimes have hidden fees and other regulations attached to them. Cash, on the other hand, is a simple and straightforward payment option. Here are five additional reasons why consumers continue to prefer cash over electronic transactions:
1. Staying on a budget
It's considerably easier for people to manage their money when they have it physically in front of them, says Time magazine. Carrying cash allows families on a tight budget to have a better idea of what they are spending and what they have left for other financial obligations.
2. Purchasing goods at smaller merchant shop
Merchants at farmer's markets or craft shows often don't have debit or credit card machines that allow customers to make transactions electronically. People who purchase groceries or other goods at such locations will carry cash to buy the products they need.
3. Easy to carry
Cash is easy to carry and use to pay with at a moment's notice without wondering if a store takes cards, says the National Retail Federation blog. For this reason, most people will always carry bills and change on them.
4. Cash is "anonymous"
Those who would rather spend money on products and services without having an electronic trace or record prefer cash. Such people will continue to take out cash and carry it on them for untraceable purchases.
5. Alternative savings options
The NRF blog also points out that saving currency is a smart way to secure money should a financial recession come along. Though this option doesn't turn into as large of an investment as a bank savings account, there is less risk when saving cash.
September 26, 2013