While the answer may seem obvious, since we currently have both coexisting, it’s not quite that simple. The modern payments environment is rather diverse with digital and mobile payment platforms, along with cash. Never in history has the consumer had so many choices when it comes to paying for goods and services.
Consumers are turning to contactless payments and mobile wallets at alarming rates. This has led some to believe these digital payment methods may one day replace cash completely. However, it’s far more likely for digital payment options and cash to continue to coexist as the payments environment continues to evolve.
Why Cash Remains a Popular Choice for Consumers
Digital payment methods continue to grow and many consumers are using these payments often. However, cash still remains one of the top choices for consumers, and for good reason. Even with so many new choices in digital payments, the traditional payment options are not being left behind.
Consumers will always value the ability to choose, especially when it comes to money. Some may be ready to quickly leap over to a new digital payment method, but many will remain loyal to the payment option they feel most comfortable with.
Numerous reports show digital payments growing and cash transactions also growing. In fact, the World Payments Report 2017 predicted a growth for digital payment volumes by about 11% by 2020. In addition, the Retail Banking Research released data in December 2017 showing withdrawals at ATMs worldwide has grown by 6% compared to the previous year. A total of 107 billion cash withdrawals were made all across the globe at ATMs.
While many have reported that cash is dying, the Federal Reserve Bank of San Francisco disagrees. In a blog published in November 2017, the bank stated, “reports of the death of cash are greatly exaggerated”.
The quote was based on a report looking at cash-in-circulation from 42 different countries from 2006 to 2016. Cash-in-circulation has grown across all of the countries, except Norway and Sweden.
Meeting the Consumer Payment Demand
No matter the type of business you run, it’s more important than ever to provide consumers with payment options. Since the payment environment is so diverse, you must offer a diverse number of payments. Accepting credit cards and cash is just the tip of the iceberg today.
Many consumers are using the contactless payment options and contactless withdrawal option from ATMs. Choosing the right ATM for your convenience store or nightclub will make a big difference. An ATM offering the latest payment technology will allow more consumers access to the cash they need when they need cash.
It’s important to break down the barriers between your business and the payments you want to collect from consumers. The right ATM offers more options for your consumers and eliminates the threat of skimming. An ATM with a contactless reader helps to break down any remaining barriers between your business and the consumer.
Cash isn’t going anywhere. However, the way we gain access to cash is changing. Your business must stay up on the new payment technology or it may not thrive in the way you had hoped. Make sure you offer your consumers the very best options when it comes to accessing cash and paying for goods and services.