A Diary of Cash Use in the US

by Chuck Reed- MEI Marketing Director of Vending Americas and APAC
Chuck Reed- MEI Marketing Director of Vending Americas and APAC
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on March 03, 2014 in Cash Recycling | 0 Comments

The Cash Product Office of the Federal Reserve just issued their preliminary report on the future of cash. They asked consumers to keep a diary of what form of payment they used and the value of each purchase.  Their findings may surprise you in light of all the excitement around cashless and the ‘death’ of cash as a key form of payment by consumers.

First, the total amount of cash in circulation in the US has never been higher. It has continued to grow each year at a rate higher than our GDP growth.  The Fed concluded that the demand for non-electronic payment is still robust.  What’s even more relevant for our vending industry is that 40% of the total number of payments a consumer makes each month is still with cash.  Electronic payments have a higher share of the higher value payments but for price points below $10, consumers use cash 65% of the time.  Let me repeat, for purchases under $10 in value, consumers of all age demographics prefer to use cash 65% of the time!
 

Consumers from 18 to 34 years in age use their debit cards 51% of the time.  But their second choice is cash.  In fact the 24 and under age group uses cash 40% of the time.  Cash is either the preferred source of payment or the secondary source of payment for ALL age groups.  The 24 and under age group uses cash for 47% of the total number of purchases they make each month.  Let me repeat that, the age group that supposedly has abandoned cash uses cash for almost half their monthly purchases! 
 


The facts tell the story.  Cash is far from dead and your machine’s ability to accept any form of consumer payment is critical to your success at any location. When it comes to accepting cash, do not limit your bill acceptors to only accept $1’s or $1’s and $5’s.  Use bill recycling to open up the consumers wallet and accept what they carry, the $20 notes they just received from the ATM- it's in the recent Fed facts! Your bottom line will thank you.
 



For more facts supporting Bill Recycling visit here! 

 

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