Cash has been through a lot in recent years. More and more businesses have been born as card only, and for many, traditional payment methods are becoming obsolete. But this isn’t - and cannot - be the case, as cash is still a necessity in our modern society.
So today, we ask the question – should cash acceptance be a legal requirement?
As research from Which magazine found, spending cash can sometimes be difficult. One in three people have tried to pay with cash but have been denied the opportunity to do so by UK retailers, in the last three years. While some may think that cash acceptance is a requirement of the past – that is not the case. And not just for the older members of our society, either.
Cash is still king for millions. Let’s take a look at why.
Millions depend on cash
13% of people (equivalent to seven million UK nationals) told Which magazine in as recently as 2021 that they regularly used cash and depended on it each and every day.
For some, it may be because they don’t have access to traditional digital methods, such as a bank account. For others, it’s just easier for them to have a pocket of cash they can manage on a day-to-day basis.
With millions of people openly stating they rely on cash, it would be wrong to exclude so many, and refuse so many opportunities for a sale. Cash acceptance is essential and will continue to be going forward.
Cash offers more control of finances
Cash has forever offered a simple way of managing of your finances. Having a tangible representation of your funds allows you to monitor your spending easily and can help you save. As the cost of living rises, and the purse strings are tightened, this is an invaluable way of knowing what you are spending and allowing you to keep on top of your budget.
And as Bloomberg news highlighted, using cash to save is cool! TikTok stars are trending for their fiscal shrewdness, with challenges from smashing Hennessy bottles to access banknotes they’ve been stashing for months, to organising extra cash into envelopes dedicated to various expenses gaining millions of views.
As the popularity of cash increases, can you really afford to refuse it? Gen Z is demanding diversity and inclusion across all business practices, with 76% of those surveyed by consumer group Quantilope stating that it is a requirement for the brands they choose – so ensuring inclusivity is vital to protect your future.
Businesses keep more of their profits
Costs are rising. And credit card companies are not excluded. However, they are passing this on to the retailers, which will ultimately impact on businesses’ bottom line. Visa imposed $145 million in increases in 2022, which is in addition to a staggering $697 million increase in 2021.
As the cost of processing digital transactions increases, businesses would see a real benefit from requesting cash as the primary form of payment. Indeed, many small businesses are now offering incentives for cash payments, such as lower item costs.
Cash use gives the retailer 100% of their profits – surely the ultimate reason for guaranteeing cash acceptance?
Cash is safe
The pandemic changed the way we all think and act. But cash is safe and always has been. Research by the Bank of England proved, however that cash is safer than the vast majority of surfaces we interact with every day.
In fact, the main infection risks would come from being close to an infected person or handling a shopping basket or trolley, PIN keypads, products on shelves or touchscreens of self-checkout terminals.
Cash is vital for a healthy economy
Cash will always be a part of a strong, functioning, healthy economy. By allowing everyone to participate in society, how and when they want to, cash ensures that nobody is left behind.
And more cash means more spending. The demand for cash in the US is at its highest since 2000, and this normally spells out a move towards increased purchasing. As the world battles economic difficulties, increased spending through cash is an encouraging sign for businesses the world over.
Cash must remain an essential part of our economy to ensure inclusion and encourage spending. As the Government take steps to protect cash use (a commitment to legislating to protect access to cash was made in 2020), the correct steps are being taken to guarantee its continued presence in our society.
With cash proving to be a mainstay of the economy, how your business processes it must change. That’s where Cashmaster comes in. A Cashmaster device can save you at least one hour per day per store - time you can use to focus on your customers!
So why not get in touch with us today and discover how a Cashmaster device can save you both time and money?