What is the current state of cash payments amid the worldwide coronavirus (COVID-19) pandemic? According to a recent report by PYMNTS and Visa, the notion that “cash is king” is no longer true.
In the report, it was found that in the context of the more digital economy, the use of cash is now only a fraction of what it used to be in the past. Using a survey of more than 9,500 American consumers, PYMNTS and Visa found that the pandemic contributed to the acceleration of this trend. The report noted that consumers showed an increasing preference for contactless transactions.
Additionally, 80% of those surveyed noted that their interest in digital experience was due to their ability to help reduce the exposure to COVID-19. By using contactless payment moths and avoiding the handling of cash, consumers can, therefore, support health and safety procedures.
It should be noted that the findings also indicated how using cash has dominated commercial activities for a significant amount of time. However, such a share “has all but disappeared.”
However, it should be noted that there was an expedition to the study. Approximately 48% of consumers noted that tipping workers was one of the primary reasons for still having cash around.
Merchants should always take note when it comes to the latest consumer trends and needs. In fact, according to another study conducted by PYMNTS, it was found that more than 33% of purchasing decisions made by consumers relied on the different payment options offered. As an example, about a third of retail shoppers preferred to use contactless technology for in-store transactions.
As consumers transitioned from purchases made by cash to more digital options, businesses should consider investing in new technology such as sensors, automated systems, or other payment processing solutions.
PayFrame is here to provide support to businesses in terms of providing the best payment processing solutions available. To receive more information, contact a professional at 1-888-668-0733. Alternatively, an experienced member of the PayFrame team may be reached through email at info@payframe.com.
