It may be surprising to some that a generation with access to a record number of payment options, still prefers one of the oldest payment methods – cash.
From a variety of digital currency sharing and payment platform options to credit cards and cryptocurrency, millennials’ transaction choices are endless. Regardless, this demographicprefers to pay with cash.
Observation and research point to a few reasons for millennials’ preference for cash:
1. Millennials grew up amidst volatile markets and experienced first-hand the negative ramifications of the 2008 recession. As such, millennials are oftentimes drawn to the security cash can offer.
2. Cash is convenient and low cost considering fees often associated with different forms of payment. Millennials understand the value of both the convenience and economical factors.
3. Living with a record-high student debt level and amidst a housing market associated with steep costs, millennials have little interest in versatile investments.
4. Cash also helps one’s budget. It’s easy to gauge money lost when tracking your hard cash.
Given that they are one of the biggest consumer population segments, millennials’ preference toward cash certainly seems to be correlated to the fact that cash note circulation is at a significantly high level. Overall, world-wide, cash transactions make up about 83% of all transactions with around 83.5 millennials in the U.S. alone.
To keep up with this preference for cash, restaurants, retailers, hotels, and the like would be wise to implement an error-free and efficient cash management method.
The Federal Reserve Bank of San Francisco highlighted the advantages of cash automation. On its website, the bank detailed the following:
“Until recently, cash handling has been largely a manual and labor-intensive process. However, this has begun to change with a host of new devices that automate certain back-office cash handling functions, such as till preparation and end of day counting and balancing, as well as front-line tasks like cash dispensing.”
Evention offers this type of automation. The company’s Cash Recycling & Reconciliation and Tip & Gratuity Management products deliver comprehensive cash management that streamline back office operations and financial processes.
So while millennials’ preference for cash may seem like an anomaly when considering other aspects of their lifestyle, it nevertheless touts cash as timeless. Make sure your property or business is prepared for this preference by investing in Evention’s cash and gratuity management solutions. Cash is most definitely not dying.