Shoppers lose patience with cash-only businesses after five months, study claims
Consumers from Birmingham reportedly expect to have a cashless option within 3.5 months.
Small businesses and startups have less than five months to switch from taking cash only to accepting cards before a shopper’s expectations change, according to the latest research from merchant services provider Paymentsense.
Specifically, the research revealed that UK shoppers would continue to visit an SME, small retailer, independent coffee shop or food outlet for an average of 4.6 months before becoming “impatient” with their cash-only status.
The survey also found that consumer patience levels vary per region, with small businesses in Norwich benefitting from the “most forgiving” population who are willing to wait an average of 6.5 months after their first visit to a business before expecting card payments to be introduced, closely followed by Cardiff (6 months).
Considered the most impatient city is Birmingham, where consumers expect to have a cashless option within just 3.5 months, whilst Mancunians are only prepared to wait a few days longer (3.6 months).
By demographic, research also found that older shoppers are more impatient. Of all the groups questioned, millennials (from 25-34 y/o) were the most forgiving, willing to wait 5.1 months on average. Those over 65 were the least, only considering waiting 3.9 months.
Wealthier consumers with a household income of over £100,000 were willing to wait over half a year for card payment options (6.1 months). Households with an income of 25,000 to 50,000, meanwhile, were only willing to wait an average of 4.3 months.
The research also revealed that over half (53%) of respondents would leave a small business immediately if card payments are not available, with 30% reporting they would be less likely to return in the future.
“Although it’s important to recognise there’s still a place for cash, it’s difficult to ignore the signals that we’re moving towards the complete digitalisation of money. Our research provides a snapshot of consumer attitudes towards cash-only businesses, but the general trend suggests these expectations are evolving as we get closer to becoming a cashless society,” Paymentsense CMO Guy Moreve said.
“Our research suggests there’s a definite time limit for new businesses to upgrade from cash-only transactions, after which customers may turn to competitors offering more convenient alternatives. Giving consumers the shopping experience they expect is becoming increasingly important to influencing reputation and even trading longevity.”
