With inflation and the price of goods and services not going down anytime soon, consumers are turning to an age-old solution to make ends meet - cash. Retailers can take advantage of this growing trend by providing the cash convenience consumers need with an ATM on-site.
Interest rates are rising, and food costs are sky-high. Despite regular reports saying inflation is slowing, there is little sign of goods and services getting any less expensive. So it comes as no surprise that today’s economy has many consumers worried about their finances. Surprisingly, people are turning to an age-old solution: cash.
And retailers can take advantage of this growing trend by providing the cash convenience consumers need with in-store ATMs.
A Battle to Manage Finances
Millennials have been hyperaware of debt since 2008 and the Great Recession. And with Millennials in debt for college loans, adding more debt to their already burdensome financial obligations is not appealing. Yet, as costs continue to rise, maintaining their standard of living often means more debt by spending more now with the intent to pay later. With over 41 percent of Millennials having at least one credit card, many are putting themselves further in the hole.
While Gen Z aspires to be more financially responsible, they aren’t immune to the temptation of racking up debt, either. However, rather than using credit cards, Gen Z is increasingly turning to “buy now, pay later” (BNPL) to pay for goods and services.
Essentially small-dollar loans, BNPL services can usually be found in the checkout section of online retailers under headings like “or 4 payments of $52 with X.” In many respects, they mimic the old-school “Zero Percent Interest if Paid in 6 months.” This easy way of getting what they want now and paying later has proved to be tempting to many Gen X and Millennials.
But, while these services don’t offer the same interest fees as credit cards or even traditional loans, they do include fees for late payments and rack up debt that Gen X and Millennials may or may not be able to afford. Worse, these companies rarely run a check to find out if the consumer has the salary to make payments.
Turning to Cash to Make Ends Meet
Using cash as a budgeting tool isn’t a new concept. Yet, younger generations are discovering that using physical currency is a great tool to help them manage their budgets. And, TikTok has further made cash cool again with young people posting about how they have discovered different ways to use cash.
Why cash? Using cash makes it difficult to spend more money than you have. But there is also a mental connection being made when you must trade something that you have in your pocket to buy a product or service. That interaction makes purchases and spending money much more ‘real’ for the consumer.
And the number of people choosing to use cash has a larger impact than digital and card payments networks would like everyone to believe. Demand for physical money has risen since the pandemic started and cash circulation is 16 percent higher year-on-year, with around 35 percent of in-person purchases made with cash.
How Having an ATM On-Site Benefits Retailers
Consumers like to shop in stores that cater to their needs. And easy access to get the cash they need is no exception. In-store ATMs offer consumers, especially Gen X and Millennials, the money they need in convenient locations near their homes, workspaces or places they frequent. Younger individuals use an ATM up to seven times or more per month and tend to use the same ATM each time.
Retailers with ATMs on-site generally benefit from higher levels of foot traffic and ATM users typically spend around 20-30% of their withdrawal in the store hosting their preferred ATM. Not to mention surcharges on transactions can also add a nice source of recurring monthly revenue for the retailer.
If you are looking for a way to cater to budget conscious consumers, having an ATM in your establishment is a great way to earn more money – by increasing foot traffic and adding a new income stream. An ATM in your location will not only will you be helping customers address inflation, give them the convenience they want. Resolve to make more money this year by installing an ATM.
Find out if your business qualifies for a free, turn-key ATM.
Contact BFC Enterprises today!
