ATMs offer surprising money-saving benefits for retail customers
ATMs have long been a valuable amenity for merchants, providing additional revenue streams and offering customers increased banking access. But new research has brought to light a surprising new benefit of ATMs – helping consumers save money by making it easier to pay with cash.
Using cash helps curb overspending
It may seem counterintuitive that ATM access could help customers spend less, since the whole point of an ATM is to allow cash withdrawals. However, studies show that consumers tend to spend more when using cashless payment methods like debit cards and mobile wallets compared to using cash.
Researchers at the University of Adelaide found that the “pain of paying” with physical cash causes consumers to be more mindful of their spending. The act of counting out bills and coins to cover a purchase makes the outlay of money feel more tangible and painful. Cashless payments, on the other hand, create a disconnect where parting with money doesn’t feel as real.