The debate over the future of cash transactions has reached a boiling point. More importantly, one of our key topics is the estimated 114 billion pennies still in circulation all across the United States. Indeed, the U.S. Treasury Department has called these coins “severely underutilized.” This has led to renewed debate over whether to end penny production completely.
The tussle for the penny’s life brings to mind the similar canadian dollar decision for penny end in 2012. Even with this move, Canada’s finance ministry claims pennies continue to have the currency value for transactions “forever.” Observers note that all of America’s pennies could form a cube approximately 13 stories high, raising questions about their practicality and utility.
For example, convenience stores are the leader in cash purchases by transaction, processing over 32 million cash transactions a day. These transactions account for about one fifth of all spending at these venues. The penny won’t become illegal tender just yet. Our customers don’t have to change their habits because they can continue using it at thousands of local and national retailers all over the country.
Retailers are likely to continue accepting pennies, with many aiming to make the transition to a penny-free economy as smooth as possible. Jeff Lenard, chief spokesperson for the National Association of Convenience Stores, reiterates that keeping customers happy is the number one priority.
“There’s a saying in retail, ‘Never lose a customer over a penny,’” – Jeff Lenard
Lenard said that… He further pointed out that there was no sea change in transaction patterns in the first year after this policy reversal. This critical art and activist framework shapes our understanding of how American retailers would respond if production stopped.
Dylan Jeon, senior director of government relations for the National Retail Federation (NRF), reiterated the importance of customer service during this potential transition.
“Retailers’ primary goal is serving customers and making this transition as seamless as possible,” – Dylan Jeon
The penny might hold on for a little longer in other retail settings, but now its future is really in question. Even in Canada, where production has ceased, the penny remains legal tender to this day.
