The cashless society

Is Cash Dead
In The Hospitality Sector?

2
Is Cash Dead in the Hospitality Sector?
INTRODUCTION
In October 2017, the burger chain Shake Shack made headlines when it announced
plans to open its first completely cashless restaurant in New York.
Many other coffee shops, restaurants, and other hospitality operations around
the world are making the same move. Cash brings a number of challenges to
food service outlets; the cost of cashing up and banking every day, the lack of
personalization options (as cash is anonymous), hygiene, and theft.
However, the biggest issue for food service operators is speed. Guests want to
be able to pay for food and drink quickly, and cash has become one of the slower
payment options thanks to the arrival of mobile payment and the simplification of
EMV/Chip & PIN/contactless card processing.
So is cash dead for hospitality operators? Are we getting close to the day when
we can move exclusively to electronic payment methods?
In this study, we asked over 15,000 consumers around the world about their use of
cash and other payment methods in restaurants and other food service outlets.
The key takeaways:
• Only a third of global consumers think that cash will definitely still be used in
restaurants and other hospitality outlets by 2022
• 54% of consumers expect to personally use cash less over the next 5 years
• 47% of consumers expect to personally use mobile payment and digital
wallets more
Payment is a top priority
for hospitality
operators because it
impacts business
success far beyond
revenue collection.
Is Cash Dead in the Hospitality Sector? | oracle.com/hospitality
?

3
Hospitality operators therefore need to retain flexibility when it comes to payment.
84% of the consumers told us that fast, efficient service was the single most
important factor when they visit a restaurant, bar, coffee shop or other hospitality
provider. Offering the right payment options to guests and making sure that
payment works first time, every time is essential.
“I think cash will no longer be accepted in restaurants, coffee shops,
bars, and hotel food/retail outlets within 5 years.”
• Only 33% of global consumers responded that cash will definitely
still be accepted in hospitality by 2022. 35% think it will have disappeared
completely, while 32% remain neutral.
• By age: 43% of consumers aged 55+ expect cash to still be accepted
by restaurants and other hospitality operations, compared to just 28% of
millennials.
• By region: Cash is more popular in North America, where 44% of
consumers expect it to remain a payment option. By comparison, only
28% of consumers in JAPAC expect cash to be used to buy food and
drink in 2022.
Takeaway:
There’s an appetite for
cash to disappear, but
it’s not dead yet — a
third of consumers
still expect to be paying
for food and drink
with coins and notes
in 2022.
#
1
Is Cash Dead: By Age Is Cash Dead: By Region
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
60
80
100
Disagree
Neutral
Agree
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
33% 34% 28%
43%
28% 30%32%
43%
34% 33% 39%
31%
32% 27%31%
30%
33% 33% 33%
26%
40% 43%
37%
27%

4Is Cash Dead in the Hospitality Sector? | oracle.com/hospitality
“I expect to use cash less over the next five years when I visit a
restaurant or coffee shop or bar.”
• 54% of global consumers agreed that they expect to use cash less
over the next 5 years. Only 14% said that they did not expect their usage
of cash to reduce.
• By age: Interestingly, there was minimal age variation. 49% of the 55+
generation said they’d use cash less, compared to 55% of Gen X and 53%
of pre-millennials.
• By region: Over 60% of consumers in JAPAC and Latin America are
planning to use cash less, compared to almost half of those in North America
and Europe.
“I expect to use mobile payment more over the next five years
when I visit a restaurant or coffee shop or bar.”
• 47% of global consumers agreed that they expect to use mobile
payment more over the next 5 years. Only 21% said that they did not
expect to pay by mobile more frequently.
• By age: 35% of the 55+ generation said they expect to use mobile payment
more often, compared to 54% of millennials.
• By region: More consumers in JAPAC and Latin America are planning to
use mobile payment than their counterparts in North America and Europe.
However, 41% of Europeans and 37% of Americans expect to use more
mobile payment.
#
2
#
3
I Will Use Cash Less: By Age
I Will Use Mobile More: By Age
I Will Use Cash Less: By Region
I Will Use Mobile More: By Region
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
80
100
Disagree
Neutral
Agree
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
11%14% 14% 21% 17% 18%
14%18% 19%
34%
11% 9%
13% 14%
25% 29%
30%
32% 32%
30% 34% 34%
32%
31% 32%
31%
27% 27%
30% 26%
34%
33%
59%54% 54% 49% 49% 48%
54%51% 49% 35%
62% 64%
57% 60%
41% 38%
Takeaway:
Consumers might not
see cash dying out
completely by 2022, but
only 14% expect to be
personally using cash
to the same degree as
they are now.
Takeaway:
Hospitality operators
can expect to see more
mobile payment – and
not just from millennials.
35% of the 55+
generation expect to
use more mobile too.
USE
LESS
USE
MORE

“I usually pay by mobile phone app or digital wallet when I visit a
coffee shop or quick-service restaurant.”
• 27% of global consumers agreed that they usually opt for mobile
payment in quick service food scenarios.
• By age: Only 13% of the 55+ generation said that they are using mobile
payment in quick service restaurants today, compared to 36% of millennials.
• By region: North American consumers are least likely to be using mobile
payment in QSR currently – only 19% are doing so, compared to 43% of
JAPAC consumers.
“When I am in a hotel I prefer to pay for food and retail items with
mobile apps/digital wallet as I go.”
• 30% of global consumers said that in hotels they already prefer to pay
for food and retail items by mobile payment or app.
• By age: Only 17% of the 55+ generation said that they are using mobile
payment in hotels today, compared to 39% of millennials.
• By region: North American consumers are again least likely to be using
mobile payment in hotels currently – only 21% are doing so, compared to
41% of JAPAC consumers.
#
4
#
5
I Use Mobile Pay Now: By Age
I Pay By Mobile In Hotels Now:
By Age
I Pay By Mobile In Hotels Now:
By Region
I Use Mobile Pay Now: By Region
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
80
100
Disagree
Neutral
Agree
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0
20
40
60
80
100
Disagree
Neutral
Agree
NAJAPACEMEALAD
33%
40% 44%
66%
53% 59%
25%
31% 34%
58%
33% 31%
24% 28%
43%
51%
31%
31% 28%
21%
26% 22%
35%
35% 35%
25%
34%
26%
36% 31%
32%
28%
36%
29% 28%
13% 21% 19%
39%34% 31%
17%
33%
43%
40% 41%
25% 21%
Takeaway:
There’s a lot of growth to
come in mobile payment in
food service. Only 27% are
using it already, while 47%
say they’ll use it more over
the next 5 years.
Takeaway:
Hotels are also seeing
growth in mobile payment
– the 55+ prefers to use
cash or sign to add items
to their room, but
the younger generations
prefer mobile.

The Impact of Modernizing Payment on Guest Satisfaction
Payment is a top priority for hospitality operators because it impacts
business success far beyond revenue collection.
In fact, offering payment flexibility – with an emphasis on mobility – plays a critical
role in overall guest satisfaction. It helps ensure that service is quick and efficient,
which 84% of all consumers say is important in judging dining experience. Similarly,
it enables guests to pay quickly when the time is right – an ability that rates highly
(78%). But it is important to remember that simply installing modern payment
systems isn’t the end goal; maintaining their operational effectiveness is a must.
Operators just can’t afford breakdowns or delays – 81% of consumers say systems
that are working properly significantly influence guest satisfaction.
Pros of Cash Cons of Cash
• Most people have access to
cash as a payment method
• Guests expect to be able to
pay in cash
• Speed – as card and mobile payment get faster,
cash has become the slow option in a world that
values speed
• Lack of personalization – cash is anonymous and
offers no opportunities for recognition
• Hygiene – handling food and handling cash need
to be kept separate
• Cost – considerable time and costs are involved
in cashing up/banking
• Theft – it’s easier for fraud to occur with cash
0
20
40
60
80
100
Disagree
Neutral
Agree
Baby boomer
(55+)
Gen X
(35-54)
Millennial
(25-34)
Pre-millennial
(18-24)
0 20 40 60 80 100 120
78%
81%
84%
20%
17%
14%The service is quick and efficient
Their systems are working properly
I can pay quickly when the time is right

7
HOW ORACLE HOSPITALITY CAN HELP
Oracle Hospitality provides point of sale solutions to restaurants, hotels, coffee
shops, bars, stadiums, theme parks, casinos, and cruise operators worldwide.
Every day, thousands of outlets across the globe rely on Oracle to provide
maximum payment flexibility and security. Contact us for more information at
OracleHosp_ww@oracle.com or visit www.oracle.com/hospitality

on Oracle Simphony
FOR MORE INFORMATION
Please contact us:
OracleHosp_ww@oracle.com
www.oracle.com/hospitality
@OracleHosp
www.facebook.com/OracleHospitality
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks
of Oracle and/or its affiliates. Other names may be trademarks of their respective owners. VDL24881 151006
on Oracle Simphony
Please contact us:
@OracleHosp
Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademark
on Oracle Simphony
Please contact us:
@OracleHosp
Meeting today’s customer needs
Guest Engagement in the UK
on Oracle Simphony
Please contact us:
@OracleHosp

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