Unlike other industries that can quickly adopt new payment trends, executives in the healthcare finance sector need to carefully consider any changes involving payment acceptance to ensure no one is left behind. Catering to the payment preferences of anyone visiting a healthcare campus requires accepting cash, even as most Americans state they prefer digital payments over physical currency.
In a recent survey, the majority of Gen X (54%), millennials (61%), and Gen Z (60%) respondents said they would rather use a digital payment app than either cash or a card. Even baby boomers were more likely to prefer using a digital option (44%) than paying with cash (31%). Overall, 57% of Americans prefer digital payments to cash, so why should providers fight against the economic trends of the healthcare payment system that so many people seem willing to embrace?
While financial trends in healthcare suggest that most people prefer electronic payments, that preference doesn’t always match with the reality of their situation. Across generations, there are genuine reasons why guests may prefer or need to make cash transactions when visiting a healthcare setting that make it difficult for campuses to leave cash behind.
Financial Issues in Healthcare for Seniors
It’s easy to stereotype seniors as resistant to change and assume that their preference for cash transactions is more about an unwillingness to embrace modern technology in favor of a payment method they’ve used for most of their lives. In truth, there are many nuanced reasons why seniors may rely on cash transactions and find themselves locked out of any healthcare facility that only accepts digital payments.
For some, having a checking account with a debit card is too expensive. Seniors relying solely on Social Security payments may not meet minimum balance requirements to avoid paying additional service fees they can’t afford on a fixed income. Others may not feel comfortable using a debit card if they struggle to remember their PIN. Since Medicare covers most senior healthcare costs, some may need to pay for incidental expenses like parking or food and drink with cash because they didn’t consider needing to make any other transactions and lack another form of payment.
Many seniors and other individuals on fixed incomes find paying in cash makes it easier to budget more effectively, as the money they have on hand is what they can afford to spend. Carrying cash also makes it easier to pay back friends, family, and caregivers who shop for them, making seniors more predisposed to using cash since they have it available.
People with health conditions, disabilities, and dexterity issues find using cash easier than using a bank card or smartphone. It’s not easy for an individual with poor eyesight to use a digital card reader or someone with arthritis to press the right buttons or use phone apps.
Ultimately, there are many valid reasons why seniors or fixed-income guests may need to pay with cash, which prevents healthcare campuses from moving to digital-only payments. Yet, this group isn’t the only one that relies on cash transactions.
A Reliance on Cash Extends Across Generations
It’s not only seniors who can find themselves in a position of needing to make cash transactions. Anyone living on disability or unemployment can face the same financial hurdles that make using digital payments difficult. However, healthcare finance spending can prove burdensome for people of all ages when forced to use one type of payment option.
According to polls, most Americans (78%) live paycheck-to-paycheck. Almost three-quarters (73%) of adults between the ages of 27 to 42 live paycheck-to-paycheck, with millennials dealing with more of a financial squeeze than other generations.
Faced with aging parents and children of their own, many millennials have found themselves financially strapped, unable to develop any sizable savings. This age group may find it easier to pay healthcare expenses or their parent’s healthcare expenses in cash rather than risk overdrawing from already tight accounts.
This same age group (25-44) is also the one most likely to take out payday loans to cover expenses between paychecks. This leads them to have physical currency on hand, which can result in them needing to pay for prescriptions, healthcare visits, and on-site services in cash rather than digitally.
People under 30 are also more likely to be unbanked or underbanked than older age groups. According to a Federal Reserve report, 13% of adults are underbanked (anyone with a bank account who uses alternative financial resources such as payday loans), while 6% are unbanked, having no financial accounts.
Finally, research still shows that a large portion of the U.S. population (30%) prefers cash over other payment options. This number increases to 66% for people who make less than $100k a year.
For healthcare institutions to meet the payment preferences of all their guests, they should continue to accept cash, or else they risk angering and rejecting a certain percentage of people who want to use their services.
Ready Credit can Help Meet the Needs of the Healthcare Finance System
Ready Credit’s cash-to-card kiosks allow healthcare providers to continue accepting cash payments without dealing with the burden of cash handling. Our easy-to-use kiosks allow anyone to load cash onto prepaid debit cards they can use to pay for healthcare services or incidental expenses anywhere on campus. Our ReadyCARD® is usable anywhere Visa or Mastercard are accepted, empowering any user with the convenience of financial flexibility.
As healthcare providers look to find new ways of modernizing their operations while maintaining a patient-first approach, the need to continue accepting cash transactions cannot be overlooked. Cash remains a necessary payment method for many guests, especially those in vulnerable groups. Ignoring their needs could lead to less access to essential healthcare services and a reduction in the quality of patient care.
Implementing Ready Credit’s cash-to-card kiosks simplifies financial transactions within healthcare facilities, enhancing both security and operational efficiency. More importantly, it ensures that no one is excluded from receiving care or services due to their payment preferences. This commitment to accessibility improves patient satisfaction and ensures healthcare facilities remain inclusive to everyone.
To learn how Ready Credit can help your facility improve its payment systems and ensure no one is left behind, contact us today for a free consultation.