Cash Usage as a Budgeting Tool: 5 Ways to Support Your Customers

Cash usage is increasing again as people are using it as a budgeting tool, according to a recent report by the BBC. While these UK-based findings may not directly apply to the US, they mimic a pattern seen overseas as consumers everywhere continue to rely on physical payment methods.

Nationwide Building Society data shows a 10% rise in cash transactions from their ATMs in 2024 compared to 2023, continuing a three-year trend. A greengrocer and a Nationwide director both confirm, according to the BBC article, that people are finding it easier to manage their spending when using physical cash rather than electronic payments. While card payments are still necessary for businesses, the trend indicates a change in consumer behavior post-pandemic, with people returning to cash for better budget control. 

Meanwhile in the US, 2024 Findings from the Diary of Consumer Payment Choice highlight increased payments and stable demand for cash since the pandemic. This report from the Federal Reserve Financial Services shows that cash use in the US has remained stable since the pandemic. It also highlights that people are holding more cash as a store of value. 

How To Support Cash-Dependent Consumers 

There are many reasons why a consumer may rely on or prefer cash as their main form of payment. While cash-use budgeting could just be a way to save money, for others, it’s their only option. A study conducted in 2023 by the FDIC found that 5.6 million Americans remained unbanked, resulting in a heavy reliance on cash usage. Another demographic who relies more heavily on cash includes adults aged 55+, according to the 2024 Diary of Consumer Payment Choice.

Whether you’re a bank exec or a restaurant operator, the people who need cash most rely on your business’s services. Here are some ways you can continue to support them. 

1. Embrace Secure Cash Handling 

If your business handles a lot of cash, keeping it safe and organized is key. A service like Loomis can take care of transporting your cash securely, so your employees don't have to worry about it. This also helps prevent theft and makes sure your money gets where it needs to go safely and on time. This is especially helpful for businesses serving communities where cash is common. 

2. Introduce Smart Safes 

Smart safes are a big improvement over regular safes. They not only keep your cash locked up tight, but they also automatically deposit your money overnight. This means you don't have to make those risky trips to the bank as often, which is a real plus in areas where cash is the main way people pay. Smart safes also let you see exactly how much cash you have at any time, making it easier to manage your money. 

3. Use Cash Recyclers for Faster Transactions 

Businesses like grocery stores and pharmacies that deal with lots of cash can really benefit from cash recyclers. These machines automatically accept, check, and give out cash, making transactions much faster. This is super helpful when serving customers who might not be comfortable with or able to use digital payment methods. Recyclers also help keep the right amount of cash on hand, improving security. 

4. Have Always-Available Cash with Smart ATMs 

For places like banks and convenience stores that offer ATMs, keeping them stocked with cash is essential. "Smart" ATMs can predict how much cash will be needed based on past trends and events, so you're less likely to run out or have too much. This keeps customers happy and saves you money in the long run. 

5. Offer All Payment Options 

While supporting cash users is important, it's also a good idea to accept different payment methods. This way, you can serve everyone in your community, whether they prefer cash, cards, or mobile payments. Offering a variety of options is especially important for businesses in areas with many unbanked or older residents. 

Next Steps 

Cash is still a necessity for many, and that means businesses need to handle it efficiently and securely. Loomis can help with that, offering solutions like cash recyclers, smart safes, integrated cash and digital payments, and secure transport to streamline cash handling and improve the customer experience.