At a time when consumers are constantly assailed by advertising and offers encouraging them to buy a new credit card or try the last mobile payment app, there is a risk to forget that hard money also has its benefits. This article is the occasion to provide an overview of the various advantages of using paper money rather than digital payment instruments.
As cash is the most traditional form of payment, it is accepted almost anywhere. Indeed, credit and debit cards are often refused for small value purchases, without mentioning rural areas that are not equipped with the necessary equipment. For this reason, the majority of consumers declare relying on cash when traveling. In an unknown environment, having cash can be comforting as one can be sure that it will be accepted and that no fees will be added.
Furthermore, cash is crucial in emergency situations such as a system failure or natural disasters. The American government seems to agree with this assertion as cash is included in its disaster supply list alongside food, water and medicine. In addition, it is also useful to have some cash at home to avoid being left without any resource if one’s wallet gets stolen or if hackers attack the banking system.
What’s more, paying with cash will help you save money in many ways. First, various businesses charge extra fees to customers paying with cards, passing the charge that card issuers impose on them. In areas where such surcharges are not allowed, merchants even offer cash-payment discounts. These can be seen at gas stations but also at medical offices for uninsured patients. Moreover, various studies have demonstrated that when paying with cash, consumers tend to spend less and buy only essential products. In addition, people paying with paper money have a greater emotional attachment to their purchases because they understand their real value. Cash is also an effective way to budget as consumers can spend only what they have with them, avoiding at the same time to run up debts.
Finally, cash purchases ensure a right to privacy to consumers, while digital transactions can be tracked and recorded to build consumer profiles and select adapted advertising. Besides, cash is also the only payment instrument that enables people to make spontaneous gifts, be it in the form of pocket money to a child or a tip to an attentive waiter.
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