In modern day, there’s many option to buy goods. You can use mobile banking or online. It means, there’s no cash needed. MainStreet consulted Philip Graves, a consumer behavior expert and author of Consumerology: The Market Research Myth, the Truth About Consumers and the Psychology of Shopping for his thoughts on why in some cases, cash is still king.
This is some of the reason :-
When Technology Fails
It seems like it’s counterintuitive, but advances in technology are by no means accompanied by advances in the reliability of technology. Think about it: Cellphones allow us to make calls anywhere, except around a bunch of tall buildings where you have no service. Laptops let us take thousands of hours of media and thousands of pages of documents everywhere we go, but if your battery runs out and you’re not near a plug it may as well be a giant rock in your backpack.
When You Need to Remain Anonymous
Another benefit of cash is its anonymity, and despite the fact that this makes it less secure (you can dispute a credit card transaction and get the money back fairly easily, but you can’t do that with cash), Graves believes the anonymity will always appeal to some people, and not just drug dealers.
When You Want to Help the Homeless
Homeless people, it is safe to say, aren’t likely to have bank accounts, much less be able to accept credit card payments. For the charitable folks out there, it’s hard to see any alternative displacing the practice of giving a few dollar bills or a handful of change to the homeless guy in the train station.
When You Depend on Tips
The idea of anonymity plays out in another way for people in the service industry, where tips can make up a huge amount of a person’s income.Waiters and bartenders will probably always prefer tips in cash, since the lack of a paper trail means that taxes only get paid on the tips that get reported.
In Case of Emergency
Along the same lines, Graves points out that there is no such thing as a universal payment method other than cash. It has a “safety net factor,” he says, that you don’t have when you’re stranded on the road and find that the nearby gas station doesn’t accept your Diner’s Club charge card.
When You Have a Tight Budget
Financial planners often give the advice of using cash as a means to manage debt and stick to a budget, and as long as people will struggle with the amount of disposable income at their disposal, cash will serve an important purpose.
When You Buy From the Smallest Businesses
Small businesses have always had to face a difficult reality when considering whether or not to accept credit cards, since every transaction is “taxed” by the bank that issued the card in the form of interchange fees that retailers must pay. And even new alternatives like the much-hyped Square charge fees, even if they do it differently from banks.
So, don’t throw away cash. You still need it..