Is Cash Still King?

No cash, no problem. Swiping your card, pressing a button or a wave of your phone will buy you that coffee in the drive-thru. And as the digital revolution continues to grow, one might even wonder if cash is still relevant. According to experts, the answer is yes.

“Cash has not reached its expiration date,” says Meagan Donahue, Business Application Analyst at Town and Country Bank. “Life happens; emergencies come up, systems may go down and having a small chunk of change is never a bad idea.”

In fact, published reports indicate the use of cash is growing right along with digital payment systems. It’s currently the most popular and frequently used payment throughout the world. It’s free to use and is always available regardless of battery power.

For some, the act of holding something tangible in their hands also provides an accountability that can’t be replicated electronically.

“People are more aware of their spending when they use cash,” Donahue said. “When someone pays with a card, they are not brushed with the reality that they’re spending x amount of dollars. They simply swipe and walk away. However, when they use cash, they have to physically hand over the money making them more aware of their purchase.”

In areas where it’s easy to overspend, like entertainment and eating out, predetermined amounts of cash are proven ways to keep the budget in check. And as convenient as it is to whip out your digital wallet with apps like Google Pay or Apple Pay, it’s equally convenient to have cash in your real-life wallet for tips, garage sales and the occasional girl scout stand.

“There’s rarely a time when you might regret having cash on you,” Donahue said. “But there can be countless situations in any given day that can leave you wishing you had cash on hand.”

For millions of Americans, cash is still their primary source of payment. Not everyone has a bank account or qualifies for credit or bank cards. It’s also still commonly used for many small-value transactions like drinks at a gas station or an online purchase.

Privacy also plays a part in keeping the green alive. While cards and digital systems have become the mainstream form of payment, there are still some who aren’t comfortable with personal information being outside of a bank. Cash represents confidentiality and identity protection. And at the end of the day, it can’t be hacked.

“It really comes down to what each individual is comfortable with,” Donahue said. “Millennials will likely prefer digital payments and older generations may still rely on cash and checks. There’s no right or wrong way. So whatever method someone prefers, chances are it will be around to stay.”