As the United States moves closer to becoming a cashless society, cash is no longer king. Here are indicators that cash is becoming a thing of the past as consumers and retailers embrace advances in payment technology.
Consumers Prefer Card Payments
More and more, consumers are choosing card payments over cash. According to the Federal Reserve, the number of card payments has been increasing dramatically since the year 2000. In 2017, Americans made 123.5 billion payments with a debit or credit card.
Many Consumers Don’t Use Cash
A 2018 study by the Pew Research Center found 29 percent of consumers don’t use cash to purchase anything in a typical week. Another study found that just over 1 in 10 Americans reported they didn’t use cash at all over the course of a year.
Cash Payments Are Inefficient
Since both the consumer and the cashier have to count the money (not to mention making change) during a cash transaction, cash transactions take more time to handle than card payments. The time difference impacts the bottom line of businesses that rely on fast customer turnover to meet their revenue objectives.
There’s another inefficiency that comes with accepting cash payments. For some businesses, it’s the time it takes for an employee or owner to take cash to the bank. For others, it’s the expense of paying an armored truck service to collect cash.
Cash Is a Security Risk
People steal cash. It’s a sad fact. Accepting cash payments puts your business at risk for theft from employees and outsiders. More importantly, the safety of the staff and owners are at risk at establishments that take cash. In other words, it is safe eliminating cash can protect your employees.
Businesses Are Going Cashless
Across the country, many businesses have stopped accepting cash payments. From local coffee shops to most locations of the restaurant chain Dig Inn, cashless eateries are popping up everywhere. Drybar hair salons, United Airlines, and clothing retailer Reformation are a few examples of the many companies that don’t take cash payments. As a result, payment processing is becoming more important day by day.
To move away from the past, and into the future of payment processing, contact us at Premier Business Advantage today.