New Study Shows Cash Remains a Mainstay for Both Consumers and Businesses, Even in the Age of Technology
July 20 2021 - 4:21PM
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 implementing
these technologies and services.
“Despite reports that claim cash is obsolete, it
is clear that cash is a valuable asset to many consumers and
business leaders alike,” said Clatworthy. “The key is to make cash
more easily accessible to consumers and a safer option for
financial decision makers who often oversee reconciling at the end
of each day. Financial experts such as those at Cash Connect can
help guide businesses to be more efficient and safe through use of
technologies and services like Smart Safes, so they can continue to
offer a variety of payment methods to meet customer demand and grow
at scale.”
Cash Keeps Consumers on
BudgetFifty-one percent of Americans agreed that using
cash helps them budget their money. Leading the pack is the Gen-Z
demographic, or those ages 18-24, 58% of whom use cash to budget
their money, and 52% of whom cite cash as their preferred payment
method.
However, many respondents said they cap their
cash purchases at $31, as 54% only carry $1-$50 in cash on them.
When asked what they use cash for, the most popular uses were:
- Leaving tips (48%)
- Purchasing fast food (44%)
- Purchasing candy and snacks
(37%)
- Purchasing coffee (32%)
- Paying for gas (27%)
Seventy-six percent of respondents said there is
nothing worse than finding out you need cash and realizing you
don’t have any. Sixty-six percent of those who carry cash withdraw
it from an ATM anywhere from one to four times per month, with 60%
withdrawing outside their bank building or within their bank
building, and 53% withdrawing cash in $20 denominations.
An infographic on the study is available here.
Survey MethodologyThis study
was conducted by OnePoll on behalf of Cash Connect, a division of
WSFS Bank. The sample includes 1,500 general population respondents
nationwide between the ages of 18 and 57+, and 500 business
financial decision makers. The survey was conducted in June
2021.
About Cash ConnectCash Connect
is a leading national provider of ATM and Smart Safe Cash
Logistics. Since 1998, it's provided cash management services to
financial institutions and independent ATM deployers, and its
commitment to innovation helps its clients stay at the forefront of
change. A division of WSFS Bank, Cash Connect supports over 34,000
devices in all 50 states. Visit cashconnect.com for more
information
About WSFS Financial
Corporation WSFS Financial Corporation is a
multi-billion-dollar financial services company. Its primary
subsidiary, WSFS Bank, is the oldest and largest locally managed
bank and trust company headquartered in Delaware and the Greater
Philadelphia region. As of March 31, 2021, WSFS Financial
Corporation had $14.7 billion in assets on its balance sheet and
$24.7 billion in assets under management and administration. WSFS
operates from 111 offices, 88 of which are banking offices, located
in Pennsylvania (51), Delaware (42), New Jersey (16), Virginia (1)
and Nevada (1) and provides comprehensive financial services
including commercial banking, retail banking, cash management and
trust and wealth management. Other subsidiaries or divisions
include Arrow Land Transfer, Cash Connect®, Cypress Capital
Management, LLC, Christiana Trust Company of Delaware®, NewLane
Finance®, Powdermill® Financial Solutions, West Capital
Management®, WSFS Institutional Services®, WSFS Mortgage®, and WSFS
Wealth® Investments. Serving the Greater Delaware Valley since
1832, WSFS Bank is one of the ten oldest banks in the United States
continuously operating under the same name. For more information,
please visit www.wsfsbank.com.
Media Contact: Rebecca Acevedo |
215-253-5566 |
racevedo@wsfsbank.com |
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