Survey: Cash still critical for businesses but processes need updating
Despite the increased use of electronic and mobile payments, a majority of businesses expect to never be entirely cashless.
According to a new report from cash management technology PayComplete, nearly six-in-10 businesses globally (57%) say they expect to never be entirely cashless despite the widespread adoption of electronic, card and mobile payments. More than four-in-10 (41%) companies still use manual cash-handling processes, leading to many businesses spending over $500,000 a year on excessive security costs.
More than one-in-three (35%) organizations encourage buyers to use electronic payment methods to increase overall efficiencies, despite cash remaining a strong customer preference for payment.
Over a third (34%) of organizations say their biggest challenge is discrepancies when handling and processing cash due to low levels of automation. More than three-in-10 (31%) organizations say they are tightening processes and increasing staff training to offset their lack of automation.
Cash acceptance can also lead to increased business costs. PayComplete found that 20% of the value of cash is lost for organizations with three to five people handling cash. When over six people are involved in cash handling, the cost of security measures increases by over 380%, to an average annual cost of over $506,000 (£409,000).
Over a third (34%) of organizations say their biggest challenge is discrepancies when handling and processing cash due to low levels of automation. More than three-in-10 (31%) organizations say they are tightening processes and increasing staff training to offset their lack of automation.
Cash acceptance can also lead to increased business costs. PayComplete found that 20% of the value of cash is lost for organizations with three to five people handling cash. When over six people are involved in cash handling, the cost of security measures increases by over 380%, to an average annual cost of over $506,000 (£409,000).
"Cash is alive and kicking in the 21st century," said Simon James, CEO of PayComplete. "However, organizations aren’t giving it the attention it deserves. Just as card payments evolved from low-tech systems like pen-on-paper slips to magnetic stripes and now fully interconnected electronic systems, cash is having its own digital revolution."
Previously cash management advancements relied on new hardware being deployed, but this piecemeal approach has created fragmented, ‘Frankenstein’ cash estates that are inefficient and reliant on manual processes, according to James.
"It’s time for a new digital attitude to physical cash," he said.
Survey research for the report was commissioned by PayComplete and conducted by Sapio Research in December 2023. 490 cash processing and management decision-makers from consumer-facing organizations across the U.S., U.K., Germany, France, Italy and Spain, with at least 100 employees were interviewed for the report.