According to PYMNTS Global Cash Index™ – a study on cash usage in the US – the recent proliferation of new payment instruments has not affected American consumers’ payment behaviour. Indeed, since 2003 cash usage continues to represent 14-15% of GDP and 32% of transactions were carried out in cash in 2015.
Moreover, the demand for cash is not ready to fall any time soon as some companies are giving consumers the opportunity to pay their bills with paper money. Indeed, PayNearMe enables Americans to pay their bills in cash at local retail partners, such as CVS or 7-Eleven. Thanks to a mobile app that customers download on their smartphones, a barcode linked to a biller can be presented to the cashier and the bill paid. The purpose of PayNearMe is to offer unbanked people the same convenience that consumers owning a bank account enjoy when making online payments.
Mike Kaplan, Senior Vice President at PayNearMe, explains that many consumers prefer using cash when paying bills. Indeed, families owning less than $25,000 are often unbanked and use cash for the majority of their transactions. In addition, various consumers reported feeling more comfortable when using tangible money, not to mention older people that are not used to the digital world. Kaplan added that many Americans get paid in cash and find it easier to pay their bills the same way.
PayNearMe chose to partner with local familiar retailers as they offer an extremely large network made of more than 28,000 locations across the country.
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