Top 5 Reasons Why Cash is Still King in 2023
In the wake of digitization, digital payment methods have become increasingly popular. Mobile payment methods like Apple Pay, in particular, are prevalent among smartphone users. However, the use of cash is still strong, and in many cases, usage is rising. In this blog, we'll discuss the top 5 reasons why cash is still king in 2023, particularly for mature demographics and those disproportionately affected by the rising cost of living.
Topping the list for our top 5 reasons why cash is still king list is lack of payment fees! For many, saving money is essential, especially in the current cost of living crisis. Therefore, spending money on transaction fees or interest charges on debit or credit cards can become expensive, not to mention annoying. With cash, you won’t incur these additional fees. There is no need to worry about unforeseen costs, and it will save you money in the long-run.
Next on our list of why cash is still king, is the ability to only spend what is withdrawn from the bank. According to a study by the MIT, people spend up to 100% more on transactions that involve digital payment. When paying with cash, people are physically limited to the amount they have in their wallets. This helps save money and not accumulate debt. Paying with cash allows you to see exactly how much money you have at any given time and, based on that knowledge, make decisions about your spending.
It has become a trend to use cash as a personal budgeting tool. You can see and track exactly how much money you have and how much you spend. By assigning cash to different expense categories after pay day, such as rent, utilities, car, groceries, activities, or restaurants, you can save specific amounts of money for each category - how much you can and want to spend - and avoid overspending through impulsive buying decisions.
Safety and Privacy
The use of digital payment methods leaves a digital trail, while cash payments allow for secure and anonymous purchase. With cybercrime becoming an increasingly common issue, including data breaches, fraud, and identity theft, using cash can offer a safer alternative to purchasing to avoid this from happening, giving you peace of mind!
Cash is inclusive and accessible to anyone without excluding vulnerable groups who can sometimes struggle with digital payment methods, such as; older generations, low-income households, people with disabilities, and people with physical or mental health conditions. 25% of US households are either unbanked or underbanked and rely on the accessibility that cash provides!
In summary, the benefits of cash cannot be ignored. At Cashmaster, we join the many Organisations and consumers who believe that cash is still King, and will continue to be so for the foreseeable future!
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