Businesses That Turn Their Back on Cash May See Adverse Results, Warns PayComplete

According to a new research report from cashtech solutions provider PayComplete, consumers are proving predictions about the demise of cash wrong, with more than two-thirds of consumers saying they are always carrying cash.

PayComplete says that cash isn’t just being kept around by older consumers either, which is another popular assumption. In fact, its survey of 5,0000 consumers from the US, UK, Germany, France, Italy, and Spain found that 33 per cent of cash users fall within the 25 to 44 age range, while 60 per cent belong to the mid-range income brackets, earning between £19,000 and £63,999.

Simon James, CEO of PayComplete

“All the noise around the death of cash is just that. While digital and electronic payment providers have been quick to kill and downplay the importance of cash in consumers’ lives, our research shows it continues to hold a significant place in the payment ecosystem, customer satisfaction, and in maintaining and strengthening communities,” explained Simon James, CEO of PayComplete.

“Over half of cash users believe that the ability to pay with physical money supports the inclusivity of all members of the community. While a similar number (52 per cent) agree that cash will continue to have a prominent place in society for the foreseeable future. Businesses that turn their back on cash risk being seen as undermining local communities.”

This feeling about inclusivity also stretches to merchants too. In fact, 65 per cent of respondents are aware that shops must pay a fee every time they make a payment using a card or mobile phone, leading to nearly a quarter of consumers (22 per cent) choosing to pay in cash – as they look to support their local communities.

Especially for independent stores, cash can prove an important lifeline when managing cash flow. Recognising this, 57 per cent of shoppers want to pay more in cash to save businesses money. This figure jumps to 71 per cent when it comes to smaller businesses, tipping, and personal services,

Cash is still king

Businesses that decide to stop accepting cash may also be surprised by the results. PayComplete found that only 26 per cent have complied when their cash was denied and paid another way. An even larger group of customers (36 per cent) said they would walk away without making a purchase.

Almost half (47 per cent) of consumers believe organisations that don’t accept cash are putting profits ahead of customer satisfaction. Respondents reported experiencing a range of emotions when denied the opportunity to pay in cash, including inconvenience (54 per cent) to outright annoyance (52 per cent) and, most worrying of all, for those who walked out without making a purchase, anger (16 per cent).

“Retail, hospitality, and leisure and tourism businesses that have implemented or are considering a cashless strategy, especially those that claim to be driven by Environmental, Social and Governance (ESG) principles, need to seriously consider cash in their planning,” James concluded. “Consumer reactions to those failing to offer cash as a payment method combined with the strong link between cash and social inclusivity will create difficult questions for those looking to go completely cashless.”

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