Study: Cash is still king for U.S. consumers

Despite the rise of electronic, mobile and contactless payments, physical currency remains a favored choice for consumers in the United States.



This was according to “In Cash Consumers Trust. But How Do Retailers Make it Pay?,” a report from cash technology solutions provider Glory. The study is based on responses from 1,500 consumers in the U.S., U.K. and Australia.



According to the study, 48% of consumers still use cash on a daily basis. Those aged between 16 and 44 are more likely to use cash on a frequent basis than older demographics aged over 45 (45% vs 42%, respectively).



Currently, 84% of U.S. consumers still like the option to pay by cash. And 63% feel it is the most secure way to pay — a factor that underlines the ongoing dominance of this payment method.



When it comes to new ways to pay, 61% of Americans trust cash more than mobile payments, and 55% favor it over payment cards.



Convenience also plays a key role in consumers’ choice of payments. For example, 87% of shoppers want the option to pay with cash in all transactions. This is backed up by the fact that 64% of consumers use cash the same amount or more than they did a year ago.



In terms of counterfeiting, less than half (44%) of those surveyed check to ensure their dollar bills and coins aren’t fake, while 46% would prefer to use cash in self-checkout locations. This suggests there is room for improvement in terms of cash management in retail environments to both identify cash correctly and also successfully automate unmanned environments which use physical money, according to the study.



“The role of cash as a trusted payment method continues to impact consumers’ choices when it comes to ways to pay,” said Joe Gnorski, Americas marketing VP at Glory. “While cash clearly has a strong place in shoppers’ hearts – and wallets – and will have for many years to come, it is still being handled inefficiently and insecurely within many retail environments.”



According to the study, having a choice between electronic or cash payment options is important to most consumers. This factor is forcing retailers “to invest more time and resources into making cash management work profitably for their organization, including enhancing the customer experience when it comes to cash transactions and using process improvements and modern technology to eliminate cash handling inefficiencies and errors,” Gnorski concluded.