Commentary

How the rise in kiosks will really impact cash usage

While kiosks are on the rise, that doesn’t necessarily translate to a decreased use of cash as some may assume it does.

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October 9, 2023 by John Clatworthy — Senior Vice President, Chief Customer & Strategy Officer, Cash Connect, a division of WSFS Bank, Cash Connect, a division of WSFS Bank

Over the past few years, many industries have adopted new technologies to help better service their customers, including the banking industry. One of the biggest trends we've seen recently in the banking industry is self-service technology. Specifically, the convergence of ATMs and remote cash capture technologies, such as kiosks, to provide a plethora of banking functionality from one self-service device.

This device can provide the customer with a convenient solution, while offering businesses the benefit of increased automation, reduced operational risk and comprehensive cash management options.

However, while kiosks are on the rise, that doesn't necessarily translate to a decreased use of cash as some may assume it does.

Cash is a mainstay

A recent nationwide study of 1,500 people by Cash Connect and OnePoll revealed that 40% prefer to use cash as their payment method, and 51% of respondents agreed that using cash helps them budget their money, underlying the notion that cash remains a mainstay.

The truth is, despite the prevalence of alternative payment methods such as cards, crypto and digital options, consumers want to use the payment method that works best for them, including cash. Because of this, business owners and decision makers should be prepared to accommodate all payment methods — whether that's through self-service technology or not.

Kiosks should also accept cash

A true all-in-one self-service payment device should account for different payment methods and preferences, including cash. While payment kiosks readily accept digital payment methods, many also allow for customers to pay with cash at the device.

When considering all kiosk options, it's important that business owners and decision makers understand the capabilities of the machine and factor in consumer preferences.

For complete automation and gained efficiencies across the business, it's important that a self-service device incorporates a cash-based solution. Self-service payment kiosks can be an investment for many businesses, so it's imperative that the technology serves and benefits you and your customers in as many ways as possible.

Solutions to help with managing cash

Many business owners and operators are turning to technology forward options, such as self-service kiosks, to help make their businesses more efficient. To some, the incorporation of cash, as previously recommended, might sound less efficient and less safe than digital forms of payment. However, there are ways to include cash while maintaining safety and efficiency. A payment kiosk that accepts cash can eliminate employees handling any cash payments, which reduces risk and increases efficiency.

There are many cash logistics solutions available, such as armored carrier management services and kiosk management, that can help businesses automate their cash and digitize the cash logistics process. Increasingly, other organizations like local governments, automobile financing companies and utility agencies are looking to kiosks as a convenient solution for residents to pay bills and conduct other transactions with their business or organization.

The key is location, much like with ATMs, that can be placed in areas of high foot traffic for convenience. For example, a utility agency could place a bill pay kiosk in a grocery store, making it easier for customers to pay their bills.

The bottom line is that a rise in kiosks and self-service models doesn't translate to a decreased use of cash. Whether consumers are utilizing self-service models to pay for a product, their household bills or to make a deposit, businesses should prioritize offering self-service models that cater to all of their customers' payment preferences — including cash.

About John Clatworthy

John Clatworthy is Senior Vice President, Chief Customer & Strategy Officer at Cash Connect®, a division of WSFS Bank, which is a premier provider of ATM vault cash and related services in the United States. He has more than 20 years of experience in the financial services field.

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