Contrary to the desires of Visa and PayPal, cash payments remain a vital segment of retail purchases. Although a smaller percentage of transactions than card transactions overall, cash still accounts for $2.2 trillion of the $10 trillion in sales in the U.S., according to L.E.K. Consulting, and are expected to remain so indefinitely.
The amount of cash in circulation is now $1.6 trillion and the Federal Reserve predicts it will continue to grow at the rate of 4-6% per year. And each year, 500,000 ATMs in the U.S. dispense over $10 trillion in cash. This cash is not used to purchase pickup trucks or vacation homes. It is used to buy gasoline, hamburgers and six-packs.
For consumers, cash is attractive because bank notes do not require swiping or a PIN, nor do they…
