ATMs have long been a valuable amenity for merchants, providing additional revenue streams and offering customers increased banking access. But new research has brought to light a surprising new benefit of ATMs - helping consumers save money by making it easier to pay with cash.
Using Cash Helps Curb Overspending
It may seem counterintuitive that ATM access could help customers spend less, since the whole point of an ATM is to allow cash withdrawals. However, studies show that consumers tend to spend more when using cashless payment methods like debit cards and mobile wallets compared to using cash.
Researchers at the University of Adelaide found that the “pain of paying” with physical cash causes consumers to be more mindful of their spending. The act of counting out bills and coins to cover a purchase makes the outlay of money feel more tangible and painful. Cashless payments, on the other hand, create a disconnect where parting with money doesn't feel as real.
This cashless overspending effect is especially pronounced when purchasing products that convey status, such as luxury brands. Without the immediate sting of cash changing hands, it's easier to rationalize premium purchases.
Experts Advocate Using Cash as a Budgeting Tool
Because of the tendency to spend more when swiping plastic or tapping a mobile wallet, many financial experts recommend using cash as a budgeting strategy to keep discretionary spending in check. With a predetermined amount of cash allocated for things like dining, entertainment and shopping, you’ll be forced to stop spending once you've run out.
Building in that artificial spending ceiling can be challenging in a world of direct deposit and mobile payments. But retailers that provide accessible ATM services give their customers an easy avenue to get the cash they need to implement this powerful money-saving hack.
Make Cash King at Your Business
Most financial institutions still operate during traditional “bankers' hours,” making it tough for people to get to a branch when they need cash, especially if they have a 9 to 5 job. And with payroll increasingly going digital, checks and cash have become endangered species that are difficult to get your hands on.
By installing an ATM on-premises, retailers give customers a convenient way to tap into their funds and convert part of each paycheck into cold hard cash. Having those physical dollar bills on hand makes it easier to stay aware of how much money is going out, helping to rein in impulse purchases and budget-busting splurges.
Budgeting and avoiding the cashless overspending trap are just two of the money-saving benefits your retail customers can realize by having easy access to an ATM. You'll also be providing a valuable customer service while bringing in additional revenue for your business. It's a win-win to help your customers keep a tighter grip on their finances while giving your bottom line a boost.
Find Out How You Can Provide a Much-Needed Service and Help Your Customers Save Money with an On-Site ATM.