The Importance of Cash Today: Why Cash is Here to Stay
Cash has long been a part of our society and continues to be a reliable and safe form of payment today. Despite the rise of digital payments and other forms of modern payment solutions, cash remains a viable option for many consumers and businesses alike.
For households earning less than $25,000 annually, cash is used more than any other payment method. In fact, 43% of transactions for households under this threshold use cash. This makes accepting cash payments and offering walk-in cash services a valuable way for small businesses to earn more revenue and gain an edge against their competition.
Why Consumers Choose Cash
Cash may be used for a variety of reasons. For many, it’s a matter of convenience. Having cash on hand means that you don’t need to worry about carrying a card or having to wait for your payment to go through. It also eliminates the potential for fraud or identity theft.
In addition to convenience, cash may be used for practical reasons. For example, many people prefer to pay for small items in cash, such as a cup of coffee or a pack of gum. This helps them avoid paying additional transaction fees associated with credit and debit cards.
More specifically, consumers prefer to use cash for most transactions less than $25. This is important in smaller retail venues, such as convenience stores, where the average in-store purchase is often less than $10.
Another reason why people may still use cash is that it’s a secure form of payment. Cash provides a level of anonymity and privacy that other forms of payment do not.
Cash Payments in Unbanked and Underbanked Communities
Cash is an important asset for underbanked and unbanked people. Underbanked and unbanked people are those who lack access to traditional banking services, such as checking and savings accounts, and instead rely on cash for their financial management. Cash is the primary means of payment for this population, and it plays an important role in their lives.
Cash provides an immediate source of monetary assets that can be used to purchase goods and services, pay bills, and cover unexpected expenses. Many underbanked and unbanked people are unable to access traditional banking services due to lack of credit history, low income, or difficulty in providing proof of residency. Cash provides them with an alternative way to manage their finances without having to rely on banks or other financial institutions.
However, many bill payment forms have shifted to online payment. This requires cash paying customers to seek additional services to pay such bills.
How C-Stores Can Help Cash Paying Customers
Cash is still a popular payment option for people all over the world, making it an important payment option for convenience store owners. Offering customers the opportunity to pay with cash can have a number of benefits for convenience store owners.
Cash payments are simple and straightforward. They don’t require any additional hardware, software, or personnel to process them. This makes them an efficient and cost-effective way to accept payments. Additionally, customers can pay with cash quickly and easily, which can help keep lines moving faster resulting in higher customer satisfaction.
Studies have shown that when customers use cash, they tend to spend more than when they use credit or debit cards. This can lead to higher overall sales for convenience store owners.
Why C-Store Owners Should Offer Walk-In Cash Services
For underbanked and unbanked consumers who are required to seek additional services to pay online bills, c-store owners can play an important role. By offering walk-in cash services, c-store owners can help their customers pay utility bills, rent, and other online payments with cash.
Not only does this help c-store owners to earn more money through small fees associated with their customers’ transactions, but it can also build relationships with customers. By accepting cash payments, and offering walk-in financial services, convenience store owners can show that they understand their customers and gain an advantage against their competitors. Cash paying customers are likely to return to your store when they know you offer such value.
Fidelity Express is a trusted partner in the walk-in cash services industry. For over 30 years, we have been supporting small retail businesses and convenience store owners through our cash service offerings. If you’re ready to boost your sales, customer relationships, and customer retention rate, view our products to see how you can add value to your store today.