Cash is king, particularly with low-value retail transactions. See why consumers continue to reach for cash to facilitate fast payments, and how cash can help with budgetary control. This is the fourth post in a series about financial inclusion and the importance of cash.
The ease and popularity of cash
World-wide, cash continues to be the go-to payment method, as approximately 85 percent of global transactions are made using cash. Cash continues to beat electronic payment methods across the board – especially when it comes to low-value, every-day transactions.
One theory for cash’s continued popularity is its ease of use. This starts with a user-friendly design. Not only is cash easy to recognize, it’s difficult to counterfeit. Design elements such as various colors, shapes, and even tactile characteristics are used to ensure cash is recognizable and authentic. These elements help people of all capabilities and backgrounds recognize various denominations and cash is pretty much universally accepted.
It costs less to spend cash
Cash is a cheaper than many electronic forms of payment. In some studies, cash represented the lowest unit cost of acceptance per transaction.
At the same time, Cash streamlines the payment experience for both buyers and sellers, simplifying the purchasing process.
Cash guides budgetary control
Cash stands out for its ability to keep people in line with savings goals. Because of its tangible nature, it’s easy for people to see how much they do (or don’t) have to spend. All it takes is a quick glance in your wallet, envelope or purse to know if you’ve gone through your budget or not in any given week. Because its physical, cash provides strong budgetary control, especially in times of hardship.
Next in the series, see how cash contributes to financial inclusion by serving as a cultural symbol by which people come together and connect.
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