August 19, 2020
The death of cash has been exaggerated. That’s the message from a new survey commissioned by CoinFlip, a Chicago-based FinTech firm focused on delivering solutions that democratize access to essential financial services. According to the study, large numbers of Americans are not yet willing to part with paper money.
In the nationwide poll, 53% of respondents said the COVID-19 outbreak had not changed their cash-carrying habits, while a further 15% said they actually carry more cash because of the pandemic. Only 16% of people said they had cut back on the amount of cash they use.
Other key findings include:
The online survey of 1,005 adults was conducted in late June by CoinFlip, the largest provider of Bitcoin ATM terminals in the U.S. As the country grapples with a national coin shortage, its results provide further evidence that, despite headlines to the contrary, there is still strong demand for cash. Over 40 percent of respondents said they could not imagine completely replacing paper money with electronic payment systems.
“Americans have spoken and they are saying they want choice in how they spend their money,” said Daniel Polotsky, co-founder and CEO of CoinFlip. “It may suit some banks and big tech companies to push the narrative that nobody is using cash, but it is very much alive and well in our economy.”
CoinFlip believes that there will always be a need for cash because of the significant underbanked population and other cash economies that exist. While America’s unbanked population has been decreasing, a worrying 6% of the U.S. population (about 19.7 million people) still have no bank accounts at all. An additional 16% of the population is classified as underbanked. These individuals rely on cash and bear the full burden of financial exclusion.
The survey found significant disillusionment with commercial banks in general, with only 43% of people saying they trust them. While debit and credit cards are still by far the most popular electronic methods of payment, Americans seem increasingly willing to consider non-bank alternatives, with more than 12% choosing digital options like Apple Pay and PayPal as their preferred method of payment.
The survey also revealed significant interest in cryptocurrencies, such as Bitcoin, with 18.4% of respondents saying they have either purchased or invested in them.
“There’s a lot of sensationalism around cryptocurrencies, but the truth is that they are gaining popularity among Americans who are looking for convenient, alternative financial services,” said Polotsky. “In many cases, they are being used by people who are effectively shut out of the mainstream banking system because of its hefty service charges and fees.”
In 2015, CoinFlip was founded in Chicago and started placing down Bitcoin ATMs to transform the cash-to-crypto market. CoinFlip cut the typical transaction fees by more than half, created an incredibly simple customer experience, and introduced 24/7 customer support that has since become the industry standard.
Today, CoinFlip is the leading Bitcoin ATM operator in the world, with over 800 machines across 41 states and support for 10 major cryptocurrencies. CoinFlip’s goal is to advance crypto adoption, accessibility, and liquidity to support communities, like the underbanked, who need it most.
CoinFlip’s ATMs are on the frontline of a financial revolution, where bitcoin and blockchain technology can empower those who have been left behind by legacy institutions. Bitcoin and blockchain are our opportunities to create a better financial system.
For more information, please visit http://www.coinflip.tech and join the conversation on Facebook, Twitter, Instagram and LinkedIn.
Delia Mendoza, Venture PR