Despite ongoing efforts to promote cashless transactions, new research shows that consumers still prefer a wide range of payment options - including cash.
One in four Australians look to businesses that offer a variety of payment options rather than one that is strictly cashless, according to Xero's latest report.
Reflecting this trend, small business owner Anna Rogers recently began accepting cash payments from customers.
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The director of South Australia's Prove Patisserie told 9News.com.au that although cash payments are infrequent, customers still occasionally request the option.
"We saw people asking to pay with cash and obviously being in hospitality you want to meet customers with what they want to pay with. We only had one (location), where it was doable for us to offer that," she said.
"From our perspective, it's easier for card, but also we are more than happy if people only have cash, that's totally fine.
"But even with customers they check now, and that's the societal shift that customers are asking rather than assuming because everyone is so used to paying by card."
Rogers however noted that only a small percentage of customers currently paid with cash, with many preferring contactless digital payment options.
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According to Xero's research, nearly four in five small businesses reported that a sudden shift to a cashless economy would impact their operations.
Meanwhile, new payment methods are gaining popularity, particularly among younger generations.
Gen Z consumers are over four times more likely to use Apple Pay or Google Pay compared to Baby Boomers.
But only 18 per cent of small businesses currently accept mobile payments.
"Aussie consumers are increasingly embracing digital payment methods, particularly younger generations. However, small businesses don't seem to be meeting their customers where they are," Xero Sales Director Australia Theo Konstantas said.
"But there are many benefits to offering more ways for people to pay, such as faster payments and the potential to expand your customer base.
"With a drive to digital, small businesses that don't meet consumer preferences might find themselves falling behind."
