Why cash will survive modern payment solutions
The word “cashless” is getting thrown around a lot lately in the financial services industry. We’ve certainly come a long way from solely transacting with cash – our credit and debit cards, as well as our mobile phones, are thriving alternatives to notes and coins. Innovations in banking apps and mPOS technology have also further broadened the spectrum of payment solutions available to consumers.
One irrefutable fact remains, however: cash is the preferred mode of payment for most South Africans. In this blog we look at why cash still dominates everyday transactions and how this is unlikely to change any time soon.
New payment solutions are all about inclusivity, not replacing cash
The erroneous assumption by most is that embracing new methods of payment means letting go of old ones. But payment solutions aren’t meant to be mutually exclusive. In fact, the point is to promote financial inclusivity by providing access and convenience to the whole customer base.
In a developing economy like South Africa, it is important to give people a variety of options for getting and spending their money, so that no one is left out. Cash will always be a quick and dependable way of trading, and innovations in alternative methods of payment should be seen complementary to cash rather than in conflict with it.
Cash has benefits that other payment solutions can’t compete with
There are a few key benefits to using cash that are sure to see its longevity through ongoing innovation in the payments space:
- It’s fast and easy to use. Spending cash is just a matter of handing it over to a merchant in return for a product or service. It’s quick and simple enough for even children to understand.
- It’s anonymous. Consumers don’t hand over their personal information with every note that they spend, so no one can defraud them through a cash transaction.
- It’s ubiquitous. Cash is everywhere and it is a form of currency that any bank and vendor understands. If you’re using cash, you’re speaking the language that everyone speaks.
Cash will continue to be the most dominant of all payment solutions for a long time, and businesses and banks that cater to the cash-based needs of their clients will continue to reap the rewards.
Paycorp has a unique ATM solution for your business
An ATM installation is the best way to ensure that your business is looking after all your customers’ needs. Paycorp has a wide range of ATM solutions that are suitable for businesses of all sizes and functions.
Our company is your business’ best bet for an affordable and effective ATM, with over 5000 ATMs operational all across Africa.
Have a look at our ATM Solutions brochure and let us equip your business with the perfect installation that will attract customers, increase foot traffic and drive business growth.