With several new digital payments methods, it may be easy for one to assume cash isn’t that important anymore. However, cash has actually become even more important with the rise of digital payment methods.
New Rideshare Turns to Cash
We’ve all heard of Uber and Lyft by now. Both of these rideshare programs have grown tremendously over the past few years. Both also depend on seamlessly blending digital payments and ride services into one simple app.
Newer rideshare services have decided to serve a different audience. Both DashRabbit and Curb offer cash payment options for those consumers not looking to use cards. While digital options may be appealing for many, the ability to pay with cash is more attractive for many consumers.
U.S. Consumers Use Cash Often
The Federal Reserve Bank of Boston found that the U.S Consumer use cash more often for daily expenditures than any other form of payment. In the 2016 Diary of Consumer Payment Choice, the survey found that about 30% of consumers paid for daily expenditures with cash, with 27% paying with a debit card, and only 18% paying with a credit card.
When it comes to lower-value transactions, consumers prefer cash. This is the same when it comes to in-person purchases, especially purchases for $10 or less. Even when the transaction is as expensive as $25, about 40% of consumers still prefer to pay with cash.
One of the biggest reasons consumers may choose to pay with cash is to protect their privacy. When paying in cash, the consumer doesn’t have to worry about leaving a digital trail for purchases, such as a candy bar after lunch.
Cash is Preferred Across the Generations
It doesn’t matter how young or old, cash is still the top choice for most generations when it comes to payment methods. The DCPC report from the Federal Reserve Bank of San Francisco found the following:
- Consumers 35 years of age and older prefer cash as their top payment method.
- About 31% of consumers age 35 to 44 prefer cash over checks, credit cards, debit cards and other payment methods.
- About 33% of consumers age 45 to 54 and 65 and older prefer cash to any other payment option.
- For consumers age 18 to 24 and 25 to 34, cash is still considered the second most popular payment method behind debit cards.
Cash is rated very high by consumers due to the convenience, ease of use, and cost to use it. For many, it’s the preferred way to pay, especially for daily expenditures and smaller transactions. Even with so many new payment methods, consumers refuse to give up on using cash.
Connecting consumers with cash is very important. In an age of direct deposit and electronic currency, consumers need to be able to access cash when they need and want it. ATMs bridge the gap by offering a simple solution for consumers in need of cash. In addition, the most innovative ATMs offer several other services consumers’ desire.