Using cash not only affects consumer spending habits but also supports a deep psychological sense of ownership - something rarely experienced with digital transactions, shows a new research exploring how different payment methods influence spending behaviour.
The study, published in Qualitative Market Research in late 2024, reinforce the well-documented advantages of cash, such as its accessibility, resilience, and data privacy.
The study concludes that "when we handle cash, we are not just spending money; we are parting with a piece of ourselves." While digital payments are undoubtedly convenient, the research underscores the vital role cash continues to play in both monetary systems and society.
Cash remains the most inclusive payment method, accessible to everyone, including the elderly, unbanked individuals, and those in rural areas, states the report. With increasing bank closures, access to cash has been under threat.
However, new laws from the Financial Conduct Authority (FCA) regulations introduced in September 2024 ensure continued protection and improvement of cash access for businesses and consumers alike.
During natural disasters, power outages, and cyberattacks, cash serves as a crucial fail-safe. Unlike digital payments, which depend on electricity and internet connectivity, cash transactions remain unaffected, ensuring that businesses can continue operating in critical situations, states the report.
As digital transactions grow, so do concerns over data privacy and fraud risks. Cash payments remain anonymous, providing consumers with peace of mind that their financial activities are not being monitored or exploited.
A 2021 white paper study from cash handling specialists Volumatic highlighted strong consumer demand for payment choice, with many preferring a combination of cash and digital methods. A diverse payment ecosystem strengthens economic stability, allowing banks and businesses to mitigate risks associated with system failures and cyber threats.
Mike Severs, Sales & Marketing Director at Volumatic, said: “With the upcoming rise in National Insurance and the National Living Wage rates, coupled with increasing business costs, we understand the challenges businesses face. Investing in cash handling equipment not only boosts efficiency but also improves financial performance - further proving the enduring value of cash.
“With cash usage on the rise and its benefits extending beyond financial considerations to consumer well-being, businesses must adapt to customer preferences.
"Offering a choice between cash and digital payments is key to meeting customer needs and ensuring a resilient, stable economy.”
For retailers concerned about handling and processing cash, innovative solutions from Volumatic offer seamless and secure management. As experts in cash handling technology, Volumatic provides tailored solutions that enhance efficiency while reducing costs.
Volumatic’s all-in-one cash-handling solution, the CounterCache intelligent (CCi), has helped retail businesses cut cash processing costs by up to 75 per cent. Acting as a secure storage device, forgery detector, and cash counter, the CCi - when paired with CashView Enterprise software - delivers real time reporting and full visibility from POS to bank deposit.
For businesses seeking simpler solutions, Volumatic also offers a range of money-counting scales, friction note counters and secure deposit devices - designed to improve efficiency and security while saving valuable time and resources.
