Despite the recent launch of the first Amazon Go cashless grocery store, many consumers continue to pay for groceries in cash.
In fact, cash transactions make up 26% of overall transactions in the U.S.
Traditional manual cash management can be labor intensive and costly. These costs stem from error, inefficiency, and theft in legacy cash management practices.
But by automating cash management, cash can be accepted and managed cost-effectively.
Despite its hype, is “cashless” really the right solution for both the grocer and the consumer?
On the surface, cashless sounds great. But it can come as a significant detriment to the grocery industry’s relationship with consumers.
Lack of consumer confidence means costly business – especially with 26% of transactions completed with cash.
Offering preference of pay, including the option to pay with cash, is an asset to the grocery/consumer relationship.
Automating cash operations via cash recycling, cloud-based reconciliation, and provisional credit creates value for both grocers and consumers.
By automating cash handling processes, grocers can easily accept cash from consumers and streamline operations while dramatically reducing the cost associated with managing cash.
With automated back office operations, like automated cash management, grocers gain from less cash on hand, virtually no cash counting, daily credit to the bank, reduction of courier fees, and complete reconciliation with the POS.
Additionally, time-consuming bookwork related to manual cash reconciliation can be completely automated. Shrink also decreases with cash recycling hardware and automated reconciliation as cash accountability increases.
By allowing consumers to pay with cash, grocers connect with a wider consumer base because doing so expands consumer payment options.
As a result, cash’s value to consumers creates value for grocers. Cash automation propels this shared value and reduces cash management costs to increase profits.