Taking a look at why consumers still choose to use cash and the positive impact of your business having consistent cash management processes.
Despite all the headlines and hype, cash is still used for a third of all payments in the US, and for core essential businesses, such as supermarkets, QSR, convenience stores and retail, processing and managing cash intake will continue to be an exercise that just has to be done.
There has been a long trending message that cash will soon be obsolete, even prior to the covid pandemic. So, why are consumers still so adamant to keep cash as an option? Is this simply a matter of payment choice or is this due to other reasons?
We have all experienced technology outs, your Wi-Fi not connecting or your computer crashing, and this is usually a simple fix. However, if there is a technology outage with a card company or a connection issue with a stores payment system and cash is no longer accepted, your customers would have no means of paying for their goods and in turn, you would lose out on those purchases and perhaps even the customers future business.
Payment card fraud has been growing steadily, peaking during recent lockdown periods, with losses reaching over $30 billion worldwide in 2020, and no signs of slowing. Credit fraud not only impacts your customers but also merchants and issuers alike with the financial damage superseding the cost of the fraudulently purchased goods.
With an ever-increasingly 'Big Brother’ style world, privacy has become a key concern for consumers across the world. With their every move, purchase and interest being tracked, cash offers rare anonymity that isn’t offered with any other payment type, such as digital and card payments.
For many, cash is a key part of their daily lives and a simple way to maintain budgets and keep track of their spending. There are also around 63 million people across the USA who don’t have bank accounts or are underbanked.
So, what does a successful cash management process look like?
A successful and consistent cash management process not only benefits instore employees but also senior management.
For employees, streamlining your cash management can turn an often laborious and inefficient task into a simple, quick, and accurate task. By creating a consistent process for your staff to follow, reduces the opportunity for error and reduces time spent on the task. In turn, increasing employee productivity and freeing up their time for more customer-focused tasks such as improving customer service speed and quality.
For management, a consistent process means easier management reporting and visibility of the cash situation in each individual store, again meaning less time spent on carrying out spot checks and audits.
And why is it important?
A lot of ‘brick and mortar’ stores will function with the minimum number of staff as possible, this is even more true throughout the pandemic to ensure social distancing regulations are being followed. However, the downside to this, is your employees are busier than ever and makes the more laborious tasks unappealing to staff, who are then more likely to rush through them. Meaning investment in retail cash management technology is now even more important.
With consumers choosing to continue using cash in their everyday lives, businesses now, more than ever, need to have a clear process for their instore cash handling. If cash is only 30% of your business takings, having a cost-effective solution that involves as little time as possible is key.
To find out more or speak with someone in our Product Team about out how our Cashmaster One cash management solution can help create more consistent cash processes for your business, fill in the below form and one of our team will call you back.