Cashing-In: Accepting Cash for Ecommerce is Bringing Unbanked Customers Back to Retail

 

When consumers think of ecommerce payment methods, debit and credit cards are the most prevalent forms of plastic they’ll pull out of their wallets to make a purchase. But a recent report finds as many as 6.5 percent of American households do not have a bank account. Retailers are beginning to realize these cashless, ecommerce payment models don’t work for all consumers.

Dallas-based Tidel is helping bring cash automation solutions to retail by providing proven cash management systems that enables to gain a better handle on how they manage their cash, and cater to the cash-paying consumer. To discuss, host Daniel Litwin sat down with David Barclay, Vice President of Marketing for Tidel for this episode of Cashing-In with Tidel.

The U.S. Federal Reserve reports that Americans use cash for as many as 30 percent of all their transactions. Yet some retailers have attempted to stop accepting cash altogether, saying it was risky for their employees to accept and costly to transact. Regulators in New Jersey, Philadelphia, New York City and San Francisco reacted and banned cashless stores, saying that refusing to accept cash is discriminatory.

“Being in the cash business, it’s significant, because (there) are a lot of people in our country that don’t have a bank account or are underbanked in terms of leveraging other institutions beside a bank to handle their cash needs or their business needs,” Barclay said. “Really what it means is a lot of these folks are paying in cash, whether it’s at a brick-and-mortar retailer or (where) they’d like to pay with cash for their online purchases, as well.”

In 2017, Amazon introduced Amazon Cash, which lets consumers add cash to an online account at 45,000 participating stores.

It’s one solution, Barclay said, that not only helps avoid discrimination against unbanked consumers, but serves as a smart business decision aimed at capturing more market share.

“That is a program targeting, specifically, the demographic we’re talking about – the unbanked consumer. … I thought (Amazon Cash) was a brilliant move on their part,” he said.

For the latest news, videos, and podcasts in the Retail Industry, be sure to subscribe to our industry publication.

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

disengagement
Fostering a Culture of Engagement is Key to Combating Employee Disengagement and Quiet Quitting
June 12, 2024

Employee engagement in the U.S. workforce has reached an alarming 11-year low, with only 30% of employees actively engaged at work, according to Gallup. This significant drop in engagement and rise in disengagement highlights a pressing challenge for leaders across various industries on how to foster a culture where employees feel motivated and valued. What…

Read More
futurist
How a Futurist Sees Healthcare Being Delivered!
June 12, 2024

In a recent episode of the “Healthcare Rethink” podcast by FinThrive, host Brian Urban explored the future of healthcare with Trond Arne Undheim, a leading Futurist and Research scholar in Global Systemic Risk, Innovation, and Policy. Undheim, author of “Health Tech: Rebooting Society Software, Hardware, and Mindset,” shared his vision of a healthcare system…

Read More
aerodynamic
Industry-Wide Collaboration and Historical Aerodynamic Insights Ensure eVTOL Safety
June 11, 2024

The electric Vertical Take-Off and Landing (eVTOL) sector is on the cusp of revolutionizing urban mobility, yet it faces significant aerodynamic challenges. With the rise of urban air mobility, the industry must navigate complex issues like vortex ring state and outwash effects. As the technology progresses, the stakes are high for ensuring safety and…

Read More
air mobility
Seamless eVTOL Urban Air Mobility Requires Smart Vertiport Design and Regulatory Support
June 11, 2024

The electric Vertical Takeoff and Landing (eVTOL) industry is on the brink of transforming urban air mobility, with significant investments fueling rapid advancements. Projections indicate a substantial growth in the sector, underscoring its potential to reshape transportation. However, these developments bring forth considerable challenges, particularly concerning infrastructure and safety. What are the main infrastructural…

Read More