Don’t Count Out Cash

The demise of cash payments might be exaggerated as 90 percent of people select cash as their most widely used payment method and 89 percent consider the ability to pay in cash as important for their customer satisfaction, according to Why Won't Cash Just Die???, a research report from PayComplete. 

What should restaurant operators take away from the results?

"Going fully cashless is a huge risk for any restaurant operator," Simon James, CEO, PayComplete, told Modern Restaurant Management (MRM) magazine. "Success in the trade often relies on being as welcoming to as many customers as possible. Eliminating cash payments almost certainly locks many people out from dining experiences completely with 55 percent of Americans in fact agreeing that being able to pay with cash supports inclusivity of all members of the community."

Among the report highlights: 

  • More than two-thirds (69 percent) sayd they always have cash on them.
  •  One in three (33 percent) cash users fall within the 25-44 age range, and nearly two-thirds (60 percent) belong to the mid-range income brackets, earning between $24,690 and $83,165.
  • More than half (52 percent) feel cash will continue to have a prominent place in society for the foreseeable future.
  • Nearly two-thirds (62 percent) believe using physical cash helps children develop financial management skills and track their spending.

The research also found that many consumers choose cash to aid their communities. Nearly two-thirds (65 percent) are aware that operators must pay a fee every time they make a payment using a card or mobile phone, leading to nearly a quarter of consumers (22 percent) choosing to pay in cash.

"Rather than viewing cash as outdated, restaurateurs should consider it as a powerful way to engage customers," added James. "For example, 91 percent of Americans say they would be willing to pay with cash if it meant earning additional loyalty rewards or discounts. This could include promotions for future visits, or a point-based system that builds loyalty over time. Furthermore, restaurants could pass on savings from reduced card transaction fees to customers. Cashback rewards resonate strongly with consumers, with 31 percent of Americans expressing a preference for this type of promotion."

The research found that Gen Z not only used cash but that it was their preferred way to pay, with 29 percent putting it in first place, pushing debit cards down to second. Aside from Gen Z, cash is the second most popular way to pay for all age groups. 

Businesses that fail to offer cash as a payment option risk losing sales and revenue. Nearly half (47 percent) of consumers abandon in-store purchases when they can’t pay in cash. Interestingly, customers don’t mind sharing their data: 50 percent surveyed feel uncomfortable about the amount of data organizations can access from their shopping choices. Nearly half (46 percent) are moderately or extremely concerned about businesses collecting their data from card payments.

Survey research for the report was commissioned by PayComplete and conducted by Sapio Research in June 2024. 5,000 consumers from across the US, UK, Germany, France, Italy, and Spain were interviewed for the report.