If you’ve kept pace with the commentary I’ve written on [Mobile Payments Today] over the last four years, you’ll know that I’ve become somewhat pessimistic about a couple of key topics in the payments industry.
It’s no surprise that proximity mobile payments and the proliferation of a cashless society are joined at the hip like Kim Kardashian and Kanye West. You can’t talk about one without at least mentioning the other.
However, one thing that gets lost in this particular conversation is the fact cash is still a major force not only in the U.S., but also in other countries worldwide. That shouldn’t be ignored, because as executives from different industries such as banking and retail tout the ways they’re pushing us towards the future, consumers continue to show they’re not going to completely give up on cash.
This seems like a clash in the making, especially as more restaurants continue to become cash-free zones. And if you read some of the comments on a recent LinkedIn post by Union Square Hospitality Group CEO Danny Meyer, consumers at the very least want the option to pay with cash.
Meyer’s company owns 18 restaurants, including my go-to burger chain, Shake Shack, which Meyer founded.
In his post, Meyer wrote that four of the group’s restaurants were going cashless, with more to follow. The reasons he gave for this are ones we’ve all heard before.
From the post:
1) Safety: We’ve mitigated the very real security risks associated with having large quantities of cash on-site, so we can become a safer place for our team and our guests.
2) Efficiency: We’ve streamlined our operations, eliminating cash-counting, and facilitating easier shift transitions (team members can jump on the register without the time-consuming security steps involved in cash tray changeouts.)
3) Speed: Without handling cash and making change, we can serve more guests in far less time, meaning [that] you spend less time waiting in line to place your order and pay.
The pushback in the comments section shared a common theme: Consumers want choice.
Meyer has now experienced this firsthand with Shake Shack.
In October, Shack Shake launched its first-ever cashless kiosk in a new restaurant at Astor Place in New York City. But in May, the Eater published a report that Shake Shack had walked back a plan to go cashless after customers complained about the decision to use only card-accepting self-ordering kiosks at the Astor Place store.
“In the first rollout at Astor Place, we did not accept cash at all, and there are people who have told us very clearly, ‘We want to pay with cash’,” Shake Shack CEO Randy Garutti explained during an earnings call. “So in this next phase, we’re going to go ahead and have cashiers as well as kiosks.”
Meyer did note in his LinkedIn post that “policies can be broken in the name of hospitality, and if someone wants to enjoy our food and drink, yet is only able to pay with cash, it is unlikely that we would turn them away.”
I would certainly hope not. But Meyer’s view of cash is yet another case of how perception does not match reality of how everyday consumers transact. Consumers want choices. And if cash is still a convenient option, we will use it.
I’ll leave you with one piece of data that came from the U.K. this past week that illustrates the staying power of cash.
While U.K. debit card use surpassed cash in 2017, as the most used payment method in region, paper money claimed a healthy second place.
Approximately 2.2 million British consumers used mainly cash for their day-to-day shopping in 2017, despite the fact that 9 in 10 of them had a debit card they could have used if they’d chosen to, and the majority used other methods to pay their regular bills.
The thing to pay attention to here is what U.K. Finance CEO Stephen Jones said in a press release about the study:
We’re far from becoming a cash-free society and despite the U.K. transforming to an economy where cash is less important than it once was, it will remain a payment method that continues to be valued and preferred by many.
It’s safe to say that sentiment exists in the U.S. as well.
Posted with permission from www.FastCasual.com
Photo Credit: iStockPhoto.com
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