New York City’s Ban on Cashlessness Isn’t Just a Consumer Advantage, It’s a Business Advantage
To ban or not to ban? When it comes to cash, this seems to be government’s common question.
While Massachusetts banned cashlessness over 40 years ago, just last year, Philadelphia, New Jersey, and San Francisco approved similar legislation.
New York City is the most recent municipality to ban cashlessness. The city’s new legislation enacted last week, requires retailers, restaurants, and similar businesses to accept cash. The cashless ban legislation passed 43-3.
The legislation also prohibits businesses from upcharging cash-paying customers.
Businesses found violating the legislation are subject to fines –$1,000 for the first violation and up to $1,500 for each additional violation.
The legislation grants consumers rightful access to legal tender. It prevents discrimination based on payment preference. Certainly this should be applauded.
But businesses need to consider how to efficiently, effectively, and safely manage cash.
Digitizing cash meets these operational goals. Simultaneously, it grants consumers access to cash.
Whether a consumer’s cash preference is due to price point (55% of cash transactions account for purchases under $10), for budgeting purposes, or because of unbanked or underbanked status, consumers deserve to use this legal tender.
And businesses deserve access to strategies for success.
Digitizing cash via robotics and automation allows grocers, restaurants, and retailers to be strategically successful.
In this scenario, the robotics act both as a safe and a cashier while software automation tracks cash from drop through deposit – in effect “digitizing cash”. These advantages work in tandem to combat theft. They improve employee safety.
Tracking cash from drop through bank deposit also adds efficiency and decreases error within the overall cash reconciliation process. Employees fill and refill tills with biometric logins to cash recyclers. This completely eliminates manual cash counting.
Automation saves management both operations and reconciliation time. It also allows them to more closely monitor cash – catching discrepancies nearly immediately without having to compare and re-compare spreadsheets.
Furthermore, by automating back office activities, businesses better serve their consumers. It empowers grocers, retailers, and restaurants to better manage cash preference. It also allows businesses to lend more face time to their consumers.
These assets are true competitive advantages.
New York City’s new legislation elevates both businesses and consumers when grocers, retailers, and restaurants leverage automation. With automation, these businesses benefit from successfully managing consumer needs. And consumers can access a rightful payment method – cash.
