Our Cash Chasm Report revealed that 48% of hospitality businesses are handling cash manually, which is costly and inefficient once you break it down. The reality for many hospitality businesses is that cash management is still stuck in outdated and shockingly expensive practices. On average, according to our research, businesses spend over $300,000 a year on cash security measures yet still lose nearly $23,000 annually due to errors in handling cash. This is a terrifying amount of money lost each and every year. Imagine what could be achieved by redirecting this money yearly to train staff or improve facilities. For any hospitality business that is an absolute game changer
However, businesses are not burying their heads in the sand when it comes to the cost of manual cash handling. In response, some businesses have tried pushing customers toward electronic payments, with 35% actively encouraging this shift. It would be amiss to pretend that electronic transactions don’t come with benefits, but they also bring transaction fees and frustrate guests who prefer to pay with cash. For hospitality businesses, steering customers away from cash is risky and expensive and fails to improve cash handling.
Alternatively, we are seeing other hospitality businesses introducing more stringent measures such as regular staff training (35%), cash handling audits (32%), and stricter protocols (30%). These are positive steps, but ultimately, they remain short-term solutions to a deeper problem: the inefficiency of manual cash handling in a digital-first world.
Enter Technology
Much like how FinTech transformed financial services, “CashTech” better supports the way businesses handle their cash.
So what is CashTech? The idea of CashTech explains the special intersection between traditional cash handling and technology. It encompasses two key components: advanced hardware solutions and sophisticated software systems that streamline cash processes. Smart hardware automates cash handling, while software provides real-time data and insights.
How this works in practice is relatively simple: CashTech enables businesses to connect all their cash-handling equipment into one system, regardless of the device’s make or model. This provides real-time visibility over their entire cash estate, reducing inefficiencies and preventing errors. By digitizing cash transactions, businesses can cut costs, eliminate human error, and improve operational transparency.
By integrating cash management into existing digital systems — such as accounting software and customer experience platforms — CashTech allows hospitality businesses to make cash payments a competitive advantage, helping fuel growth and business resilience.
For some hospitality businesses, this change is nothing short of transformative. Smart safes with advanced security features can now handle cash with greater accuracy and security, while automated cash reconciliation speeds up end-of-day processes, leaving staff free to focus on what matters most: delivering exceptional guest experiences.
Cash: Still Critical to Success
Ultimately it is clear that cash is not going anywhere. Many customers want it as their preferred payment method, making it a big risk for any business to go cashless. Instead, smart hospitality businesses must integrate technology into their cash management process. This will allow cash payments to be made while opening up new opportunities to delight guests and invest in other business-critical areas.
For hospitality businesses, this is an opportunity. Rather than seeing cash as a burden, the hospitality industry needs to embrace the idea of CashTech to modernize cash handling processes. By doing so, hospitality businesses can reduce operational costs, streamline processes, and enhance the guest experience while giving customers the payment options they want.
