Cash: Still Here, Still Relevant

As digital payments surge, community banks are modernizing without leaving anyone behind.

By Bankers Equipment Service

Have you bought a cup of coffee lately? You might have noticed how transactions look these days. Digital wallets and tap-to-pay cards have been taking over the checkout counter. Across urban and rural alike, digital payments are becoming second nature.

Pause. This is 100% true: cash has become a dated form of currency. Even in this fast-paced digital world, physical money hasn’t disappeared; it’s evolving across all generations.

Cash Isn’t Gone—It’s Evolving
According to the Federal Reserve’s Diary of Consumer Payment Choice (2024), cash made up about 18% of U.S. consumer payments—down from 26% in 2019. The Federal Reserve Bank reports similar patterns across the Upper Midwest: fewer ATM withdrawals, fewer in-person deposits, and an ongoing shift toward online transactions.

However, cash still plays a vital role in many communities. They aren’t rejecting technology; they’re choosing balance. They want the speed and security of digital banking but also control, privacy, and the tangibility that cash provides.

Behind the scenes, lower cash volume means fewer armored transport runs and smaller vault inventories. But that doesn’t mean cash is becoming irrelevant. In many communities, an ATM is still more than a convenience; it’s a financial lifeline.

That’s why some community banks are taking a smarter path: upgrading, not downsizing. Teller Cash Recyclers (TCRs) are helping branches streamline operations, reduce errors, and free staff to focus on people, not paperwork.

At Bankers Equipment Service (BES), we’ve seen this shift firsthand. One financial institution recently modernized its entire ATM network and introduced TCR technology across multiple branches. The impact? Faster service, happier customers, and a stronger foundation for the next step—integrating Interactive Teller Machines (ITMs).

The lesson is simple: don’t disregard cash; optimize it.

 The Dual Reality of Payments
Walk through a farmers’ market or small-town diner, and you’ll still see bills changing hands. In urban areas, you’ll most likely see tap-to-pay terminals dominate. This convenience with cash confidence creates both challenges and opportunities for community banks. One thing is clear: modernization doesn’t mean choosing sides. It means making sure every customer, whether they pay digitally or with physical currency. They are still being supported.

Cash’s Hidden Advantages: Fees, Flexibility, and pricing--Familiarity
As card processing fees continue to rise, many merchants are exploring dual offering one price for card payments and a discounted price for cash. When clearly disclosed, this practice is legal under FTC guidelines (2024) and is gaining traction in retail, hospitality, and food service sectors.

Community banks are helping their business customers navigate this trend by educating customers on compliance rules, accounting impacts, and communication strategies. This guidance not only builds trust but also reinforces relationships over transactions.

Rediscovering Cash
Younger generations are embracing “cash stuffing”. A budgeting method made popular on TikTok. It’s simple, visual, and teaches a new generation the power of money management. This is an opportunity for community banks to re-engage their customers in financial literacy and budgeting.

Smart Modernization: The Balanced Path Forward
Modernization, at its best, connects the old and the new to create something better for everyone. What does that look like for community banks?

• Keep cash systems strong while continuing to invest in digital innovation.
• Educate staff and customers on fraud prevention, mobile banking, and evolving payment options.
• Upgrade strategically with tools such as TCRs, ATMs, and intelligent safes to save time and boost accuracy.
• Preserve access in underserved areas where physical cash still powers daily life.
• Prioritize cybersecurity to ensure every channel—digital or traditional—remains safe and trusted.

The Road Ahead: Trust, Technology, and Tangibility
As the financial landscape continues to evolve, one thing remains constant: people want to feel secure in how they manage their money. By embracing both digital and cash optimization, they’re ensuring that all their communities have access to secure, reliable financial services.

At Bankers Equipment Service, we’ve been helping financial institutions navigate this balance for more than 90 years—pairing reliable technology with a human touch. From Teller Cash Recyclers to ATMs and ITMs, we help banks serve every customer, in every community, with efficiency and confidence. As a proud participant in the Dakota Credit Union Association’s Cooperative Alliance Program (CAP), we’re committed to supporting credit unions with trusted solutions, meaningful partnerships, and a shared focus on growth, service, and long-term financial success. Contact George McDonald, interim president/CEO, for more information on becoming a CAP Member.