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cash-only businesses
Credit cards are accepted everywhere these days, so it can be shocking to encounter a cash-only business — but they’re still out there, reliably forcing customers to go off in search of the nearest ATM or dig under their carseat.
In fact, according to a 2012 GoPayment survey, 55 percent of the country’s small businesses don’t accept credit cards, costing them as much as $100 billion in missed sales each year. We’ve rounded up nine businesses that are still largely cash-only — many of which will likely need to adopt credit card technology if they want to keep their doors open. Read on to see who’s struggling and who’s doing just fine without plastic payments.
Related: Cash vs. Credit: The Original Paper or Plastic Debate
1. Nail Salons
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nail salons
In 2014, consumers spent $8.54 billion on nail services at the more than 53,000 nail salons in the U.S., according to Nails Magazine. About 10 percent of all U.S. nail techs only accept cash, and last year 42 percent of clients paid for their services in cash, making it the most popular form of payment. (Meanwhile, 96 percent of nail techs accept personal checks.)
Since cash is the most frequently used form of payment, it seems likely that cash-only nail salons will be able to continue to thrive without changing their practices.
2. Restaurants
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cash only restaurant
Cash-only restaurants have it tough — most people want to pay with their cards. In 2012, 81 percent of the money spent at full-service restaurants in the U.S. was charged to credit, debit or prepaid cards, according to EMS+. Additionally, a 2015 Zagat dining trends survey revealed that 45 percent of diners are less likely to patronize cash-only restaurants, while 15 percent completely avoid them altogether.
With the rise of mobile payments and sustained popularity of credit cards, cash-only restaurants risk losing customers and profits if they don’t start adapting.
Read: How to Eat at Five-Star Restaurants on a Two-Star Budget
3. Vending Machines
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vending machine
As of 2012, there were more than 5.3 million vending machines in the U.S., but only a mere 374,000 (roughly 7 percent) were equipped with cashless readers, according to VendingMarketWatch.com’s 2013 report. Even though vending machines seem like one of the few industries that should be able to remain cash-only, it turns out that, even here, customers like the opportunity to pay with a card. The same report cited a major vending machine supplier that reported an average sales increase of 28 percent after cashless readers were installed in its machines — interestingly enough, this included a 17 percent increase in cash sales.
Vending machine suppliers can’t really afford to lose business. Like almost everyone, vending machines took a hit during the recession, with industry revenue declining steadily from 2007 to 2011. A move to more payment options could be a huge boon to business.
4. Parking Meters
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parking meter
The demand for cashless payment is the second leading parking trend, according to the 2013 Emerging Trends in Parking Survey, conducted by the International Parking Institute. The pay-by-phone option in Washington, D.C., is regarded as the world’s most successful program of its type, garnering 550,000 customers and making up 40 percent of the city’s parking revenue.
Cities such as Miami and Pittsburgh have also incorporated license-plate recognition technology, allowing customers to pay for parking quickly and efficiently, without cash. Given these and other innovations, it’s likely that cash-only parking meters and lots will start to dwindle in the coming years.
5. Food Trucks
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food truck
By 2017, Emergent Research predicts that food trucks will generate annual revenues of approximately $2.7 billion, representing between 3 and 4 percent of total restaurant revenues. This is a sharp increase from the $650 million these mobile eateries generated in 2012.
The demand for food truck fare is growing rapidly, but an overwhelming 72 percent of owners still don’t accept credit cards, forcing them to turn away customers who only have plastic in their pockets. Thanks to the growing number of mobile payment systems making it easy to accept credit cards from anywhere, it’s foreseeable that cash-only food trucks will suffer if they don’t expand payment options.
6. Laundromats
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coin-operated laundry
According to the Coin Laundry Association, there are currently about 35,000 coin laundromats in the U.S., generating $5 billion in annual revenue. The number of coin laundromats has increased steadily over the last 70 years, and there are no large chains dominating the market — basically, as people will continue to need clean clothes, the industry shows no signs of declining.
Customers tend to choose a laundromat based on convenience and proximity, according to The Atlantic, so cash-only businesses will likely have no trouble surviving, at least in the near future.
7. Arts and Crafts Show Vendors
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craft fair
Thousands of arts and craft shows are held throughout the country each year. In the past, patrons knew they wouldn’t be able to make a purchase unless they came with cash, but the onset of mobile payments could change that. Vendors selling higher priced items at large craft shows might need to start accepting credit cards or risk losing sales. On the other hand, crafters with low-priced items sold at smaller events will probably be OK continuing to operate on a cash-only basis.
8. Babysitters
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babysitters
In the past, it was unheard of for parents to pay their children’s babysitter with a credit card, but thanks to sites like Sittercity, Care.com and UrbanSitter, this is now very possible. The ability to pay a babysitter with a credit card might be more convenient for many parents, but it’s unlikely this will be the deciding factor when choosing someone to watch their children. If they already know and trust a traditional babysitter, parents will likely be more than happy to pay in cash.
Related: Babysitting Cooperatives Bring Back the Babysitters’ Club
9. Christmas Tree Lots
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christmas tree
In 2013, more than 33 million “real” Christmas trees were sold, totaling $1.16 billion, according to the National Christmas Tree Association. (About half as many fake trees were sold.) A large amount of Christmas tree customers purchased theirs from non-traditional or temporary businesses — for example, 27 percent got their tree from a farm, 22 percent from a retail lot and 6 percent from a non-profit group.
Some of these businesses accept credit cards, but many do not. Because this is a once-a-year purchase, cash-only retailers will likely not have much of a problem, especially as many families enjoy the tradition of going to the same place each year.
This article originally appeared on GOBankingRates.com: 9 Businesses That Are Still Cash-Only
This article by Laura Woods first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.
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