Business
New Study Shows Cash Remains a Mainstay for Both Consumers and Businesses, Even in the Age of Technology
According to data from Cash Connect, a division of WSFS Bank, 81% of financial decision makers agree that cash payments have remained at least somewhat steady
About this update from Wsfs Financial Corporation
[{"type":"text","content":"According to data from Cash Connect, a division of WSFS Bank, 81% of financial decision makers agree that cash payments have remained at least somewhat steady at their businesses over the past five years\nWILMINGTON, Del., July 20, 2021 (GLOBE NEWSWIRE) -- Despite the availability of technology-driven forms of payment such as credit cards, debit cards, and mobile wallets, cash remains a mainstay for both consumers making payments (40% prefer to use cash) and businesses accepting them (78% accept cash as a form of payment), according to a new study published by Cash Connect, a division of WSFS Bank that provides cash logistics services. The nationwide study asked 1,500 people 18 and older about their spending habits as it relates to forms of payment, and 500 business financial decision makers about the forms of payment their businesses prefer and experience daily. “There’s a perception that cash is disappearing, especially with the rise of new technologies like mobile wallets and contactless payments,” said John Clatworthy, SVP, Director of Client Services of Cash Connect. “However, we are seeing that consumers still believe cash plays an important role in how they manage their money and make payments, specifically in younger generations such as Gen-Z, who typically are more technologically driven but also see the value in having cash on hand. This trend will be one to watch, especially for businesses that accept cash.” Businesses Value Cash, But Require Safety Thirty-nine percent of business respondents said they have a cash-only policy for purchases less than $20 and 43% of their businesses’ purchases are less than $20. With many small purchases being paid for with cash, the majority (71%) of financial decision makers agreed that there is nothing worse than when someone pays for a small purchase with a big bill, like a $50 or $100. Once the cash is within the business’ system, it is up to the financial decision maker to safely deposit it. Seventy-five percent said they currently use the “cash to bank” method, meaning they or someone trusted on their team transports the cash to the bank to be deposited. However, 77% of decision makers have considered implementing a smart safe or cash recycler for their business within the past year, with many citing, “safety and security,” “efficiency” and “ease” as top reasons for considering i...