Cash is Here to Stay… Are You Prepared?
Cardless payments, digital billing, and even cryptocurrency may be making headlines, but when it comes to buying goods and services, cash is here to stay. Cash remains one of the most popular ways to pay for meals, merchandise, entertainment, and more – and its enduring qualities have a lot to do with its simplicity and universal acceptance. Learning more about the reasons that consumers are still so fond of cash will allow you to implement the best cash handling practices available to your brand. Below are five reasons why you can expect cash to stick around.
1. It is Universally Accepted
Pretty much everyone accepts cash payments, with the exception of some extremely large purchases such as vehicles and homes. However, for the most part, cash is welcomed and accepted by both individuals and brands across the nation. For businesses, accepting cash as a form of payment means avoiding complicated credit card processing fees and potential delays or fraudulent charges. Cash can also really pay off for consumers – like when using cash for a purchase yields a discount.
2. Experts Recommend Cash
Many leading experts suggest consumers use cash for some, or even all, purchases. According to financial whiz Dave Ramsey, using cash is an easy and effective way for individuals to budget and control spending. FEMA regularly suggests keeping cash on hand in case of emergencies. Consider this… if the power goes out, digital forms of payment won’t work – but cash is always ready to go. And during times of economic uncertainty, consumers have always opted to use cash for purchases and will continue to do so in the future.
3. Cash is Anonymous
Network breaches are becoming more commonplace than ever before, and consumers who use credit or debit cards for purchases can be victimized years after they make a purchase because of stored data. Big box retailers like Target, global brands like Sony, and even hospitals and healthcare providers have all experienced data theft on a massive scale over the last few years. And the data that’s compromised during cyberattacks like these can often contain more than just email addresses and account passwords… it can include specific credit and debit card details, social security numbers, and other information that could expose a consumer to huge losses if it ended up in the wrong hands. While consumers who used credit or debit cards had their personal information exposed in these heavily-publicized incidents, those who made purchases with cash could rest assured knowing that their personal details remained secure.
4. Privacy is Enhanced with Cash
Your personal data, everything from where you work to what you buy online, is a huge commodity for marketing agencies who hope to make a quick buck. Facebook is currently facing sanctions for data collection, as are several smaller brands. When you make an online transaction with a credit card, PayPal or other digital method, your purchase is recorded, and that data can be sold to a marketing agency, social media brand, or pretty much anyone wishing to buy it. Cash purchases are not tracked in the same way, so consumers are less exposed to risk and annoyance from marketers and sellers they’d never consider purchasing from in the first place.
5. Payments are Final
When a consumer buys something using credit, or even via a digital method, that payment still needs to process. For the seller, there is always a concern that the sale could be fraudulent, and the funds could be withdrawn at any time. For the buyer, waiting for the bill to come in and coping with extraneous fees and charges can make a purchase seem overwhelming and end up being far more expensive than intended. Because of this, both sellers and buyers continue to opt for cash payments.
For retailers and other sellers, accepting cash on an ongoing basis means providing those consumers who are primed to use cash and who prefer this spending method with a way to make purchases. As long as your business has good cash management strategies in place, you will continue to thrive when you accept this enduring and reliable method of payment.