Cash continues to dominate the global economy. One way it achieves this is its universal status. Cash does not discriminate – it welcomes all users, all transactions. And, it doesn’t require complicated or expensive technology tools to use. This is the second in a series of articles that explore why cash is critical to financial inclusion.
Despite the advent today’s global, digitally-driven economy, cash continues to be exchanged billions of times around the world on any given day. Cash remains a pillar of our economic system, not just in facilitating payments, but also by enabling a system of financial inclusion where all consumers, regardless of income or social vulnerability, have the ability to access and utilize mainstream financial services and tools.
While advocates of the war on cash would like you to think otherwise, cash continues to be king and will be for a long time to come. It plays a leading role in our way of life, fostering a universal system of access, trust, efficiency and connections among people of all socioeconomic backgrounds.
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WASHINGTON – As more restaurants go cashless, a backlash is building, especially in the nation’s capital, where an increasing number of fast-casual eateries are only accepting credit or debit cards and mobile payments, the Washington Post reports. Sweetgreen, a national chain, doesn’t accept cash at most locations, including its Washington, D.C., unit, while Menchie’s, Barcelona Wine Bar, The Bruery, Jetties and Surfside in the District also refuse cash payments.
“By denying the ability to use cash as a payment, businesses are effectively telling lower income and younger patrons that they are not welcome,” said D.C. Council member David Grosso, who has introduced a bill that would require retailers to let customers pay in cash. Chicago didn’t pass a similar bill last year, and Massachusetts has a 1978 law on the books that’s for cash payments but it hasn’t been enforced regularly, according to the state retailers association.
For Surfside’s owner Bo Blair, not accepting cash has meant no armored vehicles for transporting money to the bank, no chance of employees stealing from the cash drawer, no robberies and no extra work for employees to reconcile cash receipts each evening. “Not having to worry about employees stealing or getting robbed is a huge lift off our minds,” said Blair.
Other retailers realize that “not everybody is able to buy a smartphone. Not everybody is in a position where they can get a credit card. Not everybody is even in a position where they have a stable bank account to be able to use the debit card. But they are hungry too, and have $10 in their pockets and they would like to spend their legal American form of tender, known as cash, with you,” said Arianne Bennett, who owns Amsterdam Falafelshop. “As society and technology evolves, we must ask ourselves always, not just ‘can we’? But ‘should we’?”
Starbucks has been testing a cashless store in Seattle, while Amazon Go announced it would be opening a second Seattle location of its cashier-less store. A recent study found that Canadians still prefer cash, especially at convenience stores, while many millennials also like to pay with dollars over credit or debit cards.
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Even though you may have heard the term “pain of paying,” you’ve probably not given it much thought.
Did you know that scientific experiments using MRIs show that spending with cold hard cash triggers brain activity in the same regions as physical pain?
From this research, it is easy to hack your way into spending less with cash.
You see, using plastic to pay does not trigger the same pain sensation. This means that you are more likely to spend more using a credit card because you do not experience the natural stopping mechanism cash incites when you physically see and feel that your wallet is almost empty.
Millennials are considered the digital generation. So you would think that they would be the fastest adopters of technology like Apple Pay. But it turns out that when millennials shop in physical stores, they like to use cold hard cash.
The“Diary of Consumer Payment Choice,-.” published by the Federal Reserve reports that millennials have a higher propensity to use cash than do Gen Xers or Baby Boomers.
Whether it be local, regional or even a national brand, people are traditionally drawn to things they know. Consumers in the Millennial demographic (born between 1981-1996), however, have been steering away from large, corporate brands in favor of smaller, less recognizable companies. Known as the Reverse Branding Trend, younger consumers are less prone to promoting big companies with flashy logos and catchy slogans.
Spending trends suggest that affordability and value are of vital importance, closely followed by brands that tell inspiring stories and speak to Millennials ethically. A recent article from Forbes states that, “Generally, Millennials choose to vote with their wallets for brands that tell inspiring stories, conduct business ethically or contribute to their personal brands.” However, a Millennial consumer is known to be brand loyal, once they are won over.
Do you live paycheck to paycheck? Would an unexpected $500 bill send you running for a loan? Do you find yourself putting routine expenses on a credit card but only make the minimum payment each month?
If so, there’s probably big financial trouble brewing. Here’s some recommendations that really work to help you get control of your finances.
Make a Budget
Nearly three in five Americans do not have a personal or family budget. So, the first important step is to create one.
Track your expenses for a month and find out where the money is going. This includes outlays for the big items such as rent or mortgage, groceries, and car payments. But it also includes the dollar you gave to the girl selling candy bars for her school.
You may find that in order to balance your budget, you need to cut expenses. After the “necessities of life” are covered, you may find there is not much left for the things you love. But read on, because this article will show you how to live the life you want.
Volunteer program seeks to boost cash withdrawals as budgeting tool.
Is cash still king? It would be easy to say “no,” with all the attention given to cyber shopping this holiday season and the media coverage of digital payment options.
But according to the Diary of Consumer Payment Choice, released a year ago by the Federal Reserve Bank of San Francisco, cash is still the largest retail payment category by number of transactions. By volume, cash’s share is much lower than in the past, but it still dominates small-value transactions. If credit card and debit card transactions were combined, however, they would easily outnumber cash transactions.
The holidays are a time for family, friends, celebrating—and unfortunately for many, overspending. Along with all that holiday cheer comes with it an onslaught of expenses that can quickly pile up.
Parents are especially prone to overspending during the holidays, wanting to give their children the best Christmas ever. In fact, 62 percent of parents admit that they overspend when holiday shopping.
For those trying to save, or making progress with a budget, overspending can be a devastating setback. So to help you stay focused, we’ve compiled our top seven tips for to help you stay within budget this holiday season.
Let’s face it, being on a budget is tough. It takes discipline, and you may feel like you’re constantly missing out on a lot of the things you want in life. But there’s being on a budget, and then there’s living paycheck to paycheck, where you’re so strapped for money that you can’t think further than the next time you get paid. It’s an endless cycle of stress.
Take control of your money and improve your life.
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