Accommodating the 86% of consumers who use cash

Issue 2/3 2023 Security Services & Risk Management, Retail (Industry)


Mark Templemore-Walters.

With research showing that only 14% of South African consumers are ready to go completely cashless, retailers should be looking at ways to accommodate their customers’ preferred way to pay, while also reducing their operating costs. Leading retailers are looking towards automating the handling and management of cash to meet this objective.

The research from BCG shows 86% of South Africans today use cash for at least some of their transactions. Nearly a third (29%) said they would not be comfortable with a cashless society, while 95% withdraw cash from ATMs at least once a month. This shows that it is as important as ever for retailers to support cash payments, says Mark Templemore-Walters, Operations Director at Cash Connect.

“Despite the growth of digital payments over the past few years, cash still has a vital role to play in the retail ecosystem,” he adds. “It is a trusted payment instrument that people can use without involving a third party. They can pay with cash when there is load shedding and there is no internet connectivity, or the card terminal is down.”

“Plus, it is a low-cost way to pay and accept payments, and helps people to manage their spending more carefully. It also ensures our fundamental right to privacy. These features make cash one of the most inclusive payments options in a country where around 11 million people are underbanked (BCG research).”

Supporting consumer choice

For retailers, one of the keys to success is giving customers’ choice in how they pay, allowing them to choose the option that meets their needs in terms of speed, convenience, accessibility and security. Retailers should ensure that shoppers can transact safely and conveniently in-store, whether they want to use cards, cash or a digital wallet.

“Although there is a perception that cash acceptance is expensive, the reality is that the cost of handling and securing cash compare favourably with accepting card payments,” says Templemore-Walters. Retailers can further reduce cash costs by automating cash management. Today’s solutions save time and money by eliminating manual reconciliations and banking, as well as counting and double-count supervision.

“Automated cash handling solutions have become an essential component of a successful retail store,” Templemore-Walters adds. “Smart, robust cash vaults enriched with fintech solutions can demonstrate tangible cost savings to the retailer’s balance sheet. Automated cash handling can deliver a saving of up to 40% in time and money.”

Automation saves time and money

Cash Connect, a member of the Connect Group, offers automated cash management and payment solutions as part of a wider portfolio of fintech solutions. Retailers can ‘Click & Borrow’ to access working capital in just 24 hours. If they have a Cash Connect retail vault, repayments are deducted in small daily instalments straight from cash in the vault to limit the impact on cashflow.

“In today’s challenging retail environment, retailers need to exploit the latest tools and technologies to improve cash flow and efficiencies,” says Templemore-Walters. “Automating cash management is a quick win because it enables companies to protect cash, increase business efficiency and save money at the same time.”




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Natural catastrophes and fire risks top concerns
Security Services & Risk Management Asset Management Residential Estate (Industry)
Natural disasters are the highest risk in the real estate industry, followed by fire and explosions, and then business interruption. Estates must prioritise risk management and take proactive measures to safeguard their assets, employees, and reputation.

Read more...
Building a solid foundation
Alwinco Security Services & Risk Management Asset Management Residential Estate (Industry)
Understanding the roles of a Risk Assessor and a Risk Manager is like building a solid and secure foundation in the security world. Andre Mundell makes it easy to understand.

Read more...
Using KPIs to measure smart city progress
Axis Communications SA Residential Estate (Industry) Integrated Solutions Security Services & Risk Management
United 4 Smart Sustainable Cities is a United Nations Initiative that encourages the use of information and communication technology (including security technology) to support a smooth transition to smart cities.

Read more...
Enhancing estate security, the five-layer approach
Fang Fences & Guards Residential Estate (Industry) Integrated Solutions Security Services & Risk Management
Residential estates are designed to provide a serene and secure living environment enclosed within gated communities, offering residents peace of mind and an elevated standard of living.

Read more...
Local manufacturing is still on the rise
Hissco Editor's Choice News & Events Security Services & Risk Management
HISSCO International, Africa's largest manufacturer of security X-ray products, has recently secured a multi-continental contract to supply over 55 baggage X-ray screening systems in 10 countries.

Read more...
Detecting humans within vehicles without opening the doors
Flow Systems News & Events Security Services & Risk Management
Flow Systems has introduced its new product, which detects humans trying to hide within a vehicle, truck, or container. Vehicles will be searched once they have stopped before one of Flow Systems' access control boom barriers.

Read more...
A standards-based, app approach to risk assessments
Security Services & Risk Management News & Events
[Sponsored] Risk-IO is web-based and designed to consolidate and guide risk managers through the whole risk process. In this article, SMART Security Solutions asks Zulu Consulting to tell us more about Risk-IO and how it came to be.

Read more...
Cybercriminals embracing AI
Information Security Security Services & Risk Management
Organisations of all sizes are exploring how artificial intelligence (AI) and generative AI, in particular, can benefit their businesses. While they are still figuring out how best to use AI, cybercriminals have fully embraced it.

Read more...
Integrate digital solutions to reduce carbon footprint
Facilities & Building Management Security Services & Risk Management
As increasing emphasis is placed on the global drive towards net zero carbon emissions, virtually every industry is being challenged to lower its carbon footprint and adopt sustainable practices.

Read more...
Visualise and mitigate cyber risks
Security Services & Risk Management
SecurityHQ announced its risk and incident management capabilities for the SHQ response platform. The SHQ Response Platform acts as the emergency room, and the risk centre provides the wellness hub for all cyber security monitoring and actions.

Read more...