As digital payments have become more prevalent in recent years, the threat to their security has also increased. Cyber-attacks have become increasingly serious, with nearly 17 million users in the UK affected by data breaches during 2021 – a million more than last year (Surfshark research 2022).
To combat this threat, paying by cash offers consumers the option of making a transaction without disclosing ANY personal data. This lack of ‘digital trail’ is increasingly popular among individuals who feel that their entire lives are lived and recorded online. Offering customers the option to use cash can help build trust in a business.
In addition to security, cash also offers resilience. Digital payments work well until something goes wrong. Cash, on the other hand, can withstand power cuts, electrical outages, cyber-attacks, and wifi failures. Many instances have been reported of shops, restaurants, and leisure venues suddenly losing power, being hacked, or experiencing internet connectivity issues. In such situations, digital payments cannot be processed, which is frustrating for all parties involved, especially for the customers.
Cash overcomes these issues and proves to be the most resilient method of payment. Outages can severely impact a business’s takings, and customers may seek alternative options if they cannot pay with cash. By accepting cash, you can continue trading during periods of downtime, demonstrating flexibility that your customers will appreciate.
Another advantage of using cash is lower processing fees. Card issuers have historically taken a cut of profits through card processing fees. However, since Brexit, these fees have skyrocketed due to the UK no longer being subject to the European legislation that capped them. A Treasury Report published by the UK Parliament last year found that card issuer fees have more than doubled since 2014. These escalating fees can have a crippling effect on profitability, particularly for smaller businesses that cannot absorb them as easily.
While cash incurs some processing fees, investing in cash handling solutions like Volumatic’s CounterCache intelligent (CCi) solution can help recoup costs through savings achieved by eliminating manual cash counting and reducing shrinkage. The CCi counts, validates, and securely stores cash, providing accurate reporting and accountability when used with Volumatic’s CashView Enterprise software. These end-to-end solutions can even help reduce Cash in Transit (CiT) fees.
Cash also aids in budgeting. During times of financial hardship, such as the rising cost of living experienced in 2023, cash provides an easy way for consumers and businesses to track their spending. Physically handing over money to pay for something discourages frivolous spending and serves as a visual reminder of how much has been spent and how much remains. Cash has become a popular budgeting tool, especially among the younger generation, who have even popularized “cash-stuffing” on TikTok.
Lastly, cash enables financial inclusivity. While a majority of UK consumers regularly use card and/or mobile payments for their convenience, not everyone has access to or prefers these methods. Around 17% of the population, equivalent to roughly eight million adults, rely on cash as their primary payment method. These individuals may include lower-income earners, those who are paid in cash, those living on benefits, and those residing in rural locations. Even those who don’t heavily rely on cash still use it as a secondary or backup payment method, particularly for smaller purchases like morning lattes or lottery tickets. Refusing to accept cash in your business could result in losing customers. Cash’s universality allows everyone to contribute equally to the economy and ensures businesses don’t exclude those who choose or have to use cash.
In conclusion, embracing cash as a payment method offers various benefits for businesses. It provides enhanced security, resilience during technical issues, lower processing fees, improved budgeting, and financial inclusivity. By considering these advantages and investing in cash handling solutions, businesses can optimize their operations and cater to the diverse needs of their customers.
