Contrary to the popular belief that cash and cash payments will soon be extinct, cash continues to play a vital role in the lives of consumers. In 2012, the Federal Reserve banks of San Francisco, Boston, and Richmond conducted a study of cash use amongst American consumers. Far from preferring credit and debit cards to cash, the study found that cash is the most common method of payment.
Consumers’ relationship with cash is more than just a simple preference for one payment type over another; an individual’s age, income, and even the type of transaction, can affect a consumer’s decision to pay cash. Cash for instance, is the leading payment method for low-income individuals, with cash use declining as income rises. However, consumers of all income levels use cash for an average of twenty-two transactions per month. Adults aged 18-24 exhibited the highest preference for cash of any age group; forty percent of 18-24 year olds favor cash. Although the preference for cash differs depending on age and income, all consumers favor cash for small transactions, with the average cash transaction being only twenty-one dollars.
The continuing role of cash in consumer spending habits is good news for individuals in the ATM business. Thirty percent of consumers cite cash as their favorite method of payment, and even consumers who choose credit or debit cards as their preferred method say that cash is their second choice. With cash being the top preference for so many consumers, people need ready access to cash through a bank or ATM. Less than fifty percent of ATMs are bank-owned machines however, so consumers wanting cash are likely to use an independently-owned and operated ATM. Businesses that own and operate an ATM can promote customer spending amongst individuals who prefer cash, and appeal to a wider segment of consumers, thus attracting new potential customers into a business.
Contact America’s ATM to get an ATM for your business. America’s ATM provides businesses with ATMs, financial service kiosks, and marketing products. You can choose from a variety of ATM-related programs, including the Free ATM Placement Program, the Free ATM Partner Program, and the ATM Processing Program; individuals can also become an ATM Reseller Partner. Call 877-475-1104, or contact America’s ATM through the website, http://americanatm.com/contact-us/ to get started. Learn more about the ATM programs at http://americanatm.com/programs/.