Cashing in on Psychology

Cafes, bakeries, and other small businesses: do you still accept cash payments in the rise of the digital age? Studies from Stanford, Notre Dame, and Nike show that it might be harming your business if you don’t. When customers aren’t feeling great about making a purchase, they’d rather pay with cash so they don’t have a digital trail to remind them about their guilt. When people feel like they’re making a good financial decision, they’re more likely to pay with card so they can remind themselves of their good choices.

The bottom line: If you sell self-indulgent products, keeping cash an option would be beneficial to your business. Let your customers have the option to forget about what they spent money on, and chances are you’ll sell more.