According to a recent study by Volumatic and Enryo, customers are increasingly using cash to better manage their spending due to the current cost-of-living crisis. The report argues that cash is gaining popularity among all age groups and demographics as the most flexible payment option. “Cash is not only alive and well […] and now both industry groups and consumers are fighting back to protect what is quite simply the most flexible payment method we currently have,” said Mike Severs, Volumatic’s Sales and Marketing Director.
Despite the rise in digital payments, a cashless society is still far from reality. As per the study, 71% of the participants used cash for a transaction in the prior two weeks, while 25% expect no change in their use of cash in the near future. These findings back up the argument that cash remains a crucial mode of payment for many people.
However, there has been a recent trend of businesses refusing to accept cash as payment, which has led to inconvenience for customers. “Nearly half (45%) of customers have been somewhere that has refused or discouraged payment in cash, and that they had been inconvenienced by it,” shared Severs. This refusal of cash as a valid payment method began during the pandemic, when misinformation about cash posing a hygiene risk led to concerns that it could help spread Covid.
But a recent report by the World Health Organization confirmed that cash poses no greater threat than any other payment method in spreading viruses. Despite this, some businesses still insist on going cashless, which might be cutting their customer base at a time when the economy is trying to bounce back.
In conclusion, while digital payments continue to grow, cash remains a crucial payment method for many customers. Businesses that refuse to accept cash as payment might be risking losing customers and, consequently, hindering economic recovery.
