Roughly 30 percent of Americans don’t carry any type of cash at all, and 76 percent of shoppers that do carry cash keep less than $50 in their wallets, with nearly half having less than $20 — and why should they?1
Thanks to credit cards and debit cards, there is no need to carry paper money. You can buy goods and services with a simple swipe, dip, or tap of your card. This is why card-based transactions continue to soar while cash money is on the decline.
However, you still need a wallet to carry your cards, right? Not really.
The rise of mobile payments has liberated American shoppers from billfolds and money-clips. Although near field communication (NFC) technology had a rocky start, the arrival of Apple Pay® revolutionized the world of retail shopping.
When you add the growing popularity of eCommerce, cryptocurrencies, wearable fintech, and even peer-to-peer payment apps, is it safe to assume that cash and physical wallets will eventually become obsolete?
Although paper-based currencies are becoming less popular, they will likely stick around for the foreseeable future. Dollars and cents may become harder to use, but as with many obsolete technologies, there are enough users to ensure demand doesn’t disappear completely. Despite the growing popularity of mobile payment solutions, cash may be the payment option of choice for:
Wallets will also likely stick around for a while — even when they don’t carry any paper money. That’s because wallets offer a convenient way to store drivers’ licenses, loyalty cards, and family photos. Most modern smartphones can duplicate these core functions, but it will take some time for this practice to become 100 percent universal.
Even if every person adopted mobile payments or fraudulent activity ceased to exist — cash would still be here to stay.
Not convinced? Keep in mind the following:
In the coming years, fewer of your customers will use cash. The number will probably never reach 0 percent, but the general downward trend is unmistakable given the speed with which the payments landscape continues to evolve.
However, this doesn’t mean you should phase out cash – or any other payment options. In fact, you should be expanding the number of ways customers can pay. Doing so means turning away fewer sales and converting more visitors to customers.
Fortunately, expanding your payment environment is easy with Clover.
Our POS systems can handle the full spectrum of payments, including cash, checks, credit cards, debit cards, gift cards, and EMV chip cards. We also support contactless payments so that your customers only need to wave or tap their NFC-enabled cards or mobile devices over the POS terminal to complete the purchase. Alternatively, they can scan QR codes with their phones for in-person purchases using PayPal or Venmo.
To learn how our POS solutions can help your small business grow, contact a Clover Business Consultant today.CONTACT SALES
1 “More Americans say they don’t carry cash,” CNBC, 15 January 2019
2 “A surprisingly large number of people still use VCRs and other outdated technology,” Business Insider, 1 September 2017
3 “You could be sitting on a fortune if you have some old VHS tapes. Here’s how to cash in,” Miami Herald, 12 December 2019
4 Homepage, SendTelegram.com