The Federal Reserve Cash Office survey shows that 16% of U.S. payments are made with cash, the third most-used form after credit and debit cards. Cash continues to be a reliable payment method—especially among older generations. Still, a recent USA Today article said nearly 70% of Gen Zers use cash more than they did 12 months ago. In 2023, 18.4% of U.S. households—representing nearly 49 million people—were either unbanked or underbanked.3 There’s a growing push toward cashless payment systems, but this approach encountered backlash. For many of these households, eliminating cash as a payment option could mean losing a crucial means of feeding their families. Fifth Third is part of a group of industry leaders and experts called the Cash Payment Choice Coalition, focused on raising awareness of the importance of cash as a means of transacting business and informing and activating influencers to ensure the legal and regulatory environment remains “Cash” favorable. About 28% of consumers in the U.S. feel “safer” with cash as an option,4 and Fifth Third wants to be part of the solution in retaining this option for consumers. Robert Norman, SVP of Cash Logistics Strategy at Fifth Third Bank offers insight into why cash continues to play a crucial role at the supermarket checkout and describes how automation can improve the cash management process for grocers. “More than 90% of consumers intend to use cash either as a means of payment or store of value in the future. Cash transactions eliminate the risk of incurring fees associated with credit card usage, such as interest charges and late payment fees. Additionally, financial uncertainty, such as geopolitical instability and changes in trade policies, can lead consumers to prefer cash as a more secure and immediate form of payment. Fifth Third’s Currency Processing Solutions® (CPS) is a holistic approach to improving cash management processes for grocers, from point of sale to account reconciliation and reporting. CPS automates the cash-handling process from the time you take a cash payment through the time the money is deposited and credited into your account. Our expert cash-handling team partners with grocers to tailor solutions that streamline store processes, reduce costs, and enhance safety. We help optimize labor, minimize shrinkage and improve working capital management. We deployed our solution at a top 10 U.S. retailer that offers groceries and general merchandise. Store managers were spending 6-8 hours daily on cash handling. Fifth Third’s solution eliminated that burden, allowing managers to focus on operations. With our cash experts, the client optimized their cash process and achieved real ROI. Key benefits include:
- Save Managers’ Time: Automate cash counting and reconciliation.
- Enhance Safety: Secure funds and reduce shrinkage.
- Minimize Errors: Eliminate manual cash errors requiring recounts.
- Eliminate Bank Trips: Get cash credited directly to your account.
- Reduce Dependency on Armored Events: Manage courier relationships and reduce reliance on armored services.
- Consolidate Banking: Fewer financial institution relationships are needed across store locations.