Survey Reveals Real-World Challenges of Cash-in-Hand Payments

Payment4 Inc. (Headquarters: Shibuya, Tokyo; CEO: Yuichiro Yamazaki), a company providing software services centered on payments, conducted a survey titled "Survey on the Real Issues of Cash-in-Hand Payments" targeting 330 individuals who have paid tuition, membership fees, usage fees, etc. in cash within the last five years.

Survey Background

In recent years, cashless payments and digital transformation (DX) of operations have been promoted across various industries. However, in sectors such as extracurricular activities and local community groups, the traditional practice of collecting payments in cash—often using envelopes—remains deeply entrenched. To support digitalization in these areas, Payment4 conducted this survey to understand the real challenges and inconveniences experienced by users who have made cash-in-hand payments.

Survey Summary

[Where Cash-in-Hand Payments Still Persist]

The highest proportion was "PTA/local community associations (48.5%)", followed by "cram schools" and "sports classes", indicating that cash payments remain common in everyday community and educational settings.

[Challenges in Financial Management]

Half of those who experienced inconvenience with cash payments reported "incorrect change or wrong amounts".

[Psychological Burden of In-Person Payments]

40% responded that they felt uncomfortable when directly reminded to pay, highlighting the stress unique to face-to-face transactions.

[Operational Complexity]

40% said they "had to go to an ATM to withdraw cash" or found it difficult to handle "unexpected additional costs in cash".

Survey Overview

Survey Title: Survey on the Real Issues of Cash-in-Hand Payments

Method: Online survey

Period: June 5–8, 2026

Valid Responses: 330 individuals who paid tuition, membership fees, usage fees, participation fees, etc. in cash (including via payment envelopes) within the last five years

Survey Results

(1) Top 3 Settings Where Cash Payments Persist: "PTA/Local Community Associations", "Cram Schools", "Sports Classes"

When asked about fees or usage charges paid in cash within the last five years, "PTA, neighborhood association, or local community group fees (48.5%)" ranked highest. This was followed by "cram schools, prep schools, or conversation schools (18.2%)", "sports classes (17.9%)", and "education-related collections (15.5%)". The results show that analog cash payments remain dominant in everyday community and educational activities.

(2) [Financial Management Challenges] Over Half Experienced "Payment Errors"

When asked about specific financial or management issues experienced with cash payments, after "difficulty preparing exact change or making change (64.1%)", the second most common response was "incorrect change or wrong amounts (53.1%)", exceeding half of respondents. Additionally, 31.3% said they "did not receive a receipt, so there was no payment record". These results highlight the risks of manual errors and the lack of reliable, verifiable records.

(3) [Psychological Burden of In-Person Payments] 40% Experienced the Awkwardness of Direct Payment Reminders

Regarding psychological or relational inconveniences, "I felt uncomfortable when directly reminded by the staff after a late payment (42.2%)" and "I felt embarrassed being prompted to pay in front of others (39.1%)" ranked highest. Additionally, 37.5% said they "felt anxious about when to approach the staff member", indicating that cash transactions can strain the relationship between payers and organizers.

(4) [Operational Complexity] The Burden of "Going Out of the Way to Prepare and Carry Cash"

On operational inconveniences, "I didn't have cash on hand and had to withdraw from an ATM (42.2%)" and "it was difficult to handle unexpected additional costs in cash (40.6%)" were top responses. Furthermore, 25.0% said they "had to physically go to the class or venue just to make a payment", revealing that the effort of preparing and transporting cash for collections is a significant burden in today's era of widespread online payments.

(5) 30% of Users Have "Given Up" on Joining or Participating Due to Cash Payment Inconvenience

When asked whether they had hesitated or given up on joining a class or attending an event due to the hassle of cash payments, 13.0% said they "actually gave up", and 20.3% said they "hesitated, though didn't give up". Combined, this totals 33.3%, showing that inconvenient payment methods are causing organizers to lose potential participants.

(6) Over 60% of Users Want to Switch to Online Payments

When asked whether they would like to switch from cash-in-hand payments to online payments, 24.5% answered "strongly agree" and 39.4% "somewhat agree", totaling 63.9% who expressed a desire for online payment options. This shows that a majority of users are seeking a shift toward digital payment methods.

(7) The Biggest Barrier to Online Payments: "Organizations Aren't Equipped"

The top reason why users cannot switch to online payments, despite wanting to, was "the school or organization does not support online payments (52.6%)". Other factors included "everyone else is paying in cash (20.4%)", "it's difficult to bring up the topic with the staff (19.0%)", and "I feel older members wouldn't be able to adapt (19.0%)"—indicating that community dynamics and interpersonal considerations are significant barriers to change.

(8) What Users Want: "Automation, Missed Payment Prevention, and Online Management"—Digital Payment Shift Meets Ideal Conditions

When asked about ideal features in a membership or usage fee payment system, the top response was "automatic monthly deductions (34.8%)". This was followed by "systems that prevent missed or forgotten payments (28.5%)", "online access to payment records and receipts (25.5%)", and "support for multiple payment methods such as credit cards, bank transfers, convenience store payments, and QR code payments (23.9%)".

Insights from the Survey: It's Time for Collections to Go Online

The fact that the main barrier to adopting online payments is "lack of support from organizations", coupled with community-specific social sensitivities, underscores the need for proactive initiatives from service providers. We believe that organizations that lead by implementing the automation, error prevention, and reminder systems that users desire will establish a healthy, stress-free foundation for sustainable operations.

Our Solutions to Address the Challenges of Cash-in-Hand Payments

To eliminate the burdens and psychological stress associated with cash payments and facilitate a smooth transition to online payments, we offer the following services. By digitizing payments, we support higher user satisfaction and sustainable organizational management.

'Kaihi Pay'

https://kaihipay.jp/

Automates membership enrollment, member management, payments, and reminders—paperlessly. Adopted by over 12,000 organizations, including fitness gyms and various schools.

'Paysys'

https://service.paysys.jp/

A payment system that instantly generates a payment URL once invoice details are entered. Enables centralized management from invoicing to payment and deposit confirmation.

'Event Pay'

https://lp.eventpay.jp/

An event management support tool that streamlines registration, payment processing, participant list generation, and reminder messaging—all in one platform—to reduce administrative workload.

About Payment4 Inc.

<Company Overview>

Company Name: Payment4 Inc.

Headquarters: Shibuya Scramble Square, 2-24-12 Shibuya, Shibuya-ku, Tokyo

Representative: CEO Yuichiro Yamazaki

Founded: March 19, 1999

Capital: 1.13478 billion JPY

URL: https://www.paymentfor.com/