Why Cash Remains Crucial: The Benefits of Keeping Your Business Cash-Friendly

In a world where many of us are glued to our smartphones and digital wallets, it's easy to assume that cash is a relic of the past. But before your business decides to stop accepting dollar bills and coins, let’s explore why cash still holds its ground. Sure, digital payments are convenient, but going completely cashless can come with downsides. From boosting your customer base to ensuring your business stays operational during a power outage, cash has some hidden superpowers. Read on to find out why keeping cash in the mix can be a smart move for your business.

Inclusivity and accessibility

One of the most significant advantages of accepting cash is its inclusivity. Cash transactions don’t require a bank account or electronic device, making them accessible to everyone. This is particularly important when considering the financial landscape in the U.S. and around the world:

• Unbanked populations: about 6% of American adults were unbanked in 2023, according to data from the Federal Reserve. This translates to approximately 16 million people without a checking, savings, or money market account. This includes nearly 23% of adults with incomes below $25,000, compared to only 1% of adults with incomes over $100,000​. By accepting cash, your business can cater to a broader customer base, including those who are financially excluded, thereby increasing potential sales and fostering customer loyalty.
   
• Cash-dependent professions: many workers, such as waitstaff, valets, housekeepers, and nail technicians, receive tips in cash. By accepting cash, your business can serve these customers effectively and inclusively, preventing the loss of potential sales and maintaining a loyal customer base.
   
• Cash’s popularity: cash is still a big player in how consumers pay. In the U.S., cash payments accounts for 12% of transaction value, according to this year’s Global Payments Report, proving its staying power even as digital payments surge. Globally, cash holds a solid 16% share, translating to a whopping $6 trillion. By continuing to accept cash, businesses can tap into this significant market segment and maintain a versatile payment landscape, ensuring they meet the diverse preferences of their customers.

Security and resilience

As cyber threats are becoming more frequent, it's important to think about how your business can stay secure and resilient. While digital payments can be convenient, cash offers some surprising benefits that go beyond the obvious. From protection against certain risks to keeping your business running smoothly in unexpected situations, there’s more to cash than meets the eye. Here are some ways that keeping cash in the mix can provide security and stability to your business:

• Safeguarded from cyber threats: unlike digital payments, cash is not as vulnerable to hacking, phishing, and other forms of cyberattacks. Between September 2022 and September 2023, the U.S. experienced over 4,608 data breaches, affecting more than 5 billion records, according to the Privacy Rights Clearinghouse. Each breach may not only compromise sensitive customer information but also threatens the financial stability and reputation of a business. Cash transactions, however, are largely immune from these risks, offering a secure option that protects both your business and your customers.
   
• Resilience during power outages: another critical aspect of cash is its resilience during unforeseen events, such as power outages or network failures. Digital payment systems are reliant on electricity and internet connectivity; without them, your business could grind to a halt. In contrast, cash transactions can continue seamlessly, ensuring that your business remains operational even when technology fails. This resilience can be particularly vital for businesses in areas prone to natural disasters or where infrastructure may be less reliable. By keeping cash as a payment option, you can safeguard your ability to serve customers in any situation, thereby maintaining business continuity.
   
• Protection against fraud: cash can also provide a safeguard against certain types of fraud that are common with digital payments. For example, chargebacks—where a customer disputes a payment after receiving goods or services—can result in significant financial losses for businesses. With cash, once a transaction is completed, it can be treated as closed, eliminating the risk of chargebacks and any associated financial uncertainty. This finality can provide peace of mind for business owners, knowing that their revenue is secure.

The power of face-to-face transactions

While digital payments are quick and easy, they can’t replace the personal connection that comes with cash. Sometimes, a simple cash transaction is all it takes to make customers feel genuinely valued and understood, creating a bond that’s hard to match in our increasingly automated lives:

• Customer interactions: cash transactions often require face-to-face interaction, fostering a personal connection between customers and businesses. By accepting cash, businesses can enhance customer loyalty and satisfaction through personalized service, differentiating themselves from competitors who rely solely on digital transactions.
   
• Local economies: cash can be important for supporting local economies, especially in rural and underserved areas where access to digital payment infrastructure is limited. By accepting cash, businesses can contribute to the economic vitality of their communities, supporting local employment and allowing a broad customer base to have access to their goods and services.

Cash management solutions with Brink’s

As a leader in cash management, Brink’s provides innovative solutions to help businesses manage their cash efficiently. Whether you operate a small business or a multi-location enterprise, our solutions are designed to help your business save time, money, and improve operational resilience.

If you’re ready to improve your cash management processes, contact Brink’s today.