One in five consumers are put off by cash-only businesses

One in five consumers are put off by cash-only businesses but some small businesses cannot yet offer them, as many say non-cash payment options are too expensive according to new research by Tomato Pay.

The research found that 65% of people would rather support local businesses than big brands and almost half (46%) of people have started doing more shopping locally as a result of the pandemic and will continue to do so even when all restrictions are lifted.

However, while people are keen to shop local, they want choice with their payment options. tomato pay found that more than a third (35%) decide where to shop based on whether or not the business or tradesperson accepts non-cash payments, rising to more than half (55%) of under 35s.

During the pandemic, the use of contactless payments has been encouraged wherever possible and 61% of those surveyed said they have used less cash during the pandemic because of hygiene fears associated with handling money. As many as one in five (20%) say they would be put off using a business if it only accepted cash, while almost one in three (30%) worry cash-only businesses appear ‘dodgy’.

While people would prefer to have digital payment options, many businesses find it difficult to justify the costs, with 42% of cash-only businesses saying they know they should, but it is too expensive*.

However, the research also shows there is significant support among the public for alternative non-cash options, such as QR codes, with 42% of people saying it would be far easier to make a payment if all they had to do was scan a QR code.

Tomato pay’s founder and CEO Nicholas Heller said “Community has never been as important as it is today and watching the business and sole trader community struggle throughout the pandemic has spurred many of us to support our local communities and businesses, but people still want to be able to pay how they choose.”

“Many small businesses can’t justify the costs of offering card payments, but there is clear support for QR-code based payments which are far cheaper for small businesses to implement, with four in ten people saying they’d find it easier to pay a small business using a QR code. tomato pay is an app designed specifically with communities in mind; helping small business owners with their finances. It enables people to support local businesses in a cashless, hassle-free way, safe in the knowledge that more of their money is going to the business and not their payment providers.”