Not at all!
As the statistic of Federal Reserves has shown, people in USA in general holds more cash in pockets post pandemic (If we can name the second half of 2020 “post-pandemics”?):
“According to pre and post-pandemic consumer surveys by the Fed, consumers were holding more cash post-pandemic. In October 2019, 43% had less than $25 in cash compared to 34% who had this amount in the spring of 2020; the number holding more than $100 in cash rose from about one-third to nearly on half in April/May 2020.” (1)
It is true, the cash as a payment method significantly lost its positions last decade, but, the process started do develop not at the end of 2019, but much earlier:
David Lott, payment risk expert for the Federal Reserve Bank of Atlanta, reviewed cash usage data (1) :
“Cash, particularly over the past two years, has made a major decrease,” he said. Cash as a percentage of the average consumer’s total payments declined from 40% in 2009 to 30% in 2019.
Our experience shows even at the “full-scale” restaurants, mostly affected by the pandemic, cash payments still makes around 25% of total payments value.
Therefore, here the main question is not how to completely avoid cash payments and switch to cashless technology, but mostly how to make cash payments more economical, less expensive? And possible “contactless”, due to many customers and restaurants employees became aware about close contacts between each other.
It seams, customers didn’t became reluctant to use cash at all, and we can expect they will start to look where to spend the cash they have accumulated during the pandemic?
In (1) we read:
“Consumers are not reluctant to spend the cash they have accumulated. From October 2019 to April/May 2020, 60% of survey respondents used cash once when paying in person.
“They’re not avoiding cash in paying in person. They haven’t been scared off by some of the sensational headlines (about how unsanitary cash is) that have come up from time to time.”
While about 40% of consumers indicated a retailer tried to steer them to using a card-based payment, only 7% said a merchant has refused to accept cash.”
We shouldn’t question, if cash still is (and will be) the payment method? Current payments trend require sellers will be able accept, and efficiently manage any payment method, buyer is interested to use! I want yo emphasize here the “efficiently”!
Efficiency heavily influences on the economy of any process, including cash management. Therefore if we want to keep the cash as payment method (and we want this!) we need pay more attention how efficient (or inefficient) cash management is done in the business?
In our recent post we have written about our “ad-hock” calculation in regards how much is cost to restaurant just cash counting. We have find out in average it is $1310 a month in cash handling related tasks (mostly cash counting) alone. This is over $15,000 a year!
If the Automated Till Register (ATR) could eliminate at least 50% of cash counting expenses this means to the restaurant almost $8,000 saving a year. In fact, ATR eliminates the cash counting by servers almost 100%!
Compuflex in (2) has mentioned one of the most important way to rise the cash management efficiency DRIFT:
“We take so much time counting and handling cash, then recounting, and re-handling it because we’re not really sure if it was done properly. One solution is to DRIFT or “Do it Right the First Time”. The general idea of this accounting technique is that as soon as you touch cash, automate the handling and complete the following steps digitally.”
ATR is the straightforward way to implement DRIFT accounting principle! Other “source” to lower cash related expenses at any restaurant or shop, is the cash shrinkage! The ATR is very powerful tool in fighting the cash shrinkage in any restaurant.
The main reason for cash shrinkage are staff’s mistakes (unintentionally or intentionally made), and staff fraud. The ATR eliminates almost entirely any calculation or validation related mistakes.
The cash related fraud very heavily depends on the time the cash is possessed by the staff without being accounted. Regular POS with “classical” cash drawer only stores the cash, but doesn’t control if it is accounted in right way. Only after the day is closed, or after cash is deposited to smart safe, the fraud manipulations with the cash are excluded.
The ATR is providing very simple way to limit the time the staff directly posses it. In the case, if the restaurant is using “contactless cash payment “ (in this case the customer is paying the ticket at the device), the ticket is closed, and cash is accounted immediately after the payment is done. It is left no chance for the staff to manipulate the cash. In the case if the restaurant’s internal process allow the server to take the cash payment, and close the ticked by on the ATR, simple time threshold (say 2 h between the opening, and the closing the ticket) allows limit the time for potential fraud by the restaurant staff!
Implementation of the ATR in any restaurant in the case if it is using SoftPoint payment solution (you will find more about at the site https://softpointcloud.com) allows restaurant to close the loop in the payment technology. The cash related payment becomes simple as the card or e-wallet based payments, and can be done “contactless”.