In the article captioned 10 Most Profitable Cash-Only Businesses To Avoid Taxes, Usman Kabir delves into the change in outlook to conventional payment methods.
The rapid emergence and evolution of the digital economy have forced people to give up on cash. This has led to the rise of e-commerce platforms that allow people to make purchases without carrying cash. Despite the hype surrounding the advantages of electronic payments, paper money and coins are still very popular in many countries.
Despite the various efforts made by governments to promote cashless transactions, many developing and developing nations have still not seen the desired results. For these reasons, many small businesses remain cash-only.
Among the list of Profitable Cash-Only Business is the Nail Salons. The coronavirus pandemic in 2020 notwithstanding, the total size of the beauty salons industry in the US remained more than $57 billion. According to Statista, the majority of customers still prefer to pay in cash. One of the most successful companies in the salon industry is Ulta Beauty, which has a market cap of over $19 billion. The stock price has gained significantly since the launch of the COVID-19 vaccine.
Most vending machines are still cash-only, though the trend is expected to change in the next couple of years. According to a study conducted by Valuates Reports, the global vending machine market will reach close to $8 billion by 2021. Crane Merchandising Systems is a leading manufacturer of vending machines globally. The company’s products include self-serve machines and payment machines.
These services, combined with the increasing number of businesses offering them, are becoming increasingly profitable. According to G4S, almost 70% of e-commerce transactions are conducted in cash.
Even though its core business mainly focuses on ride-hailing, Uber, in addition to its presence in errand services, also owns a food delivery service called Uber Eats. Over the past year, the value of the food delivery business has increased significantly.
The steady growth of the laundromat industry can be attributed to the increasing number of people moving to cities. As apartment housing becomes more prevalent, the demand for coin laundromats is expected to expand.
Even though there are no clear-cut favourites in the laundry industry, several companies are still profitable. For instance, Mac-Gray, which was once the largest coin-operated laundry provider in North America, was acquired by CSC Service Group in 2013.
Car repair and car wash businesses in auto services are very cash-rich because they provide a steady flow of paper money. This is why they tend to be cash-only establishments.
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