Natalia Paruz, affectionately known as the “Saw Lady,” is experiencing a notable decline in tips while performing her unique musical act at the Herald Square subway station in Manhattan. On a recent Thursday afternoon, her gold-colored tip bucket held only a couple of dollar bills alongside some coins, raising concerns about the changing landscape of street performances. “I have so many people who come to me and say to me, ‘I love your music, I want to give, but I’m sorry, I don’t carry cash,’” Paruz shared. In response to this shift, she has begun displaying QR codes for digital payment apps like Venmo and PayPal, hoping to capture contributions from commuters who prefer cashless transactions.
The trend away from cash payments is not just affecting Paruz; it’s transforming how street performers nationwide make a living. Research from Capital One reveals that nearly half of U.S. adults don’t use cash in a typical week, while about 70% have made few to no cash purchases in the past year. In 2024, a staggering 87% of all U.S. transactions were cashless, with estimates predicting that by 2027, this figure could rise to 94%. However, cash remains prevalent among older demographics, with those aged 55 and up using it at nearly double the rate of their younger counterparts.
While exact data on how street performers are tipped is limited, Federal Reserve statistics indicate that cash is typically preferred for payments under $25. Paruz notes that roughly 70% of her tips are still cash, a sentiment echoed by New York blues keyboardist Gabriel Aldort, who reports that only 5% of his tips come through digital means. Despite placing large QR codes for payment apps, Aldort suggests that many New Yorkers, including tourists, are still carrying cash.
However, some performers are witnessing an uptick in tips from digital payments. Boston-based stunt comedian Chadd “Wacky Chad” Deitz, who has been using digital methods for over a decade, estimates that 30% to 40% of his tips now come through apps. “If you don’t accept digital payments, then you’re not going to survive,” he stated, emphasizing the necessity of adapting to these changes. Digital payment platforms are positioning themselves as advanced tools for gig workers, aiming to facilitate the way buskers earn their income.
Yet, the convenience of digital tipping has also introduced challenges for performers. Danny Tangelo, a traveling magician, has observed that cash tips are often higher than those received digitally. He notes that the physical act of seeing tips can encourage others to contribute, something often lost with QR codes. Paruz concurs, saying digital payments create a sense of distance between performers and their audiences, reducing opportunities for interaction.
Apps like Venmo and Cash App further complicate the landscape by taking a small percentage of performers’ earnings, which can add up significantly. In contrast, busk.co, a nonprofit payment site designed specifically for street performers, allows artists to receive tips through various digital platforms without such deductions. However, it has not gained as much traction in the U.S. as it has in other countries.
Despite the growing acceptance of digital payments, many performers feel the pinch, with Paruz indicating that her combined cash and digital earnings are lower than what she made in the 1990s. Deitz has also faced all-time lows this year. Compounding the issue is a growing dissatisfaction with tipping culture; a survey revealed that over 40% of Americans believe tipping has become excessive. With rising living costs, audiences are more likely to scrutinize their discretionary spending, which can further impact tip sizes.
For performers like Deitz, the method of payment matters less than the act of receiving it. “A $2 tip isn’t going to sustain a white picket fence and two kids,” he remarked. For Tangelo, the tangible benefits of cash remain unrivaled, especially when it comes to magic tricks that simply can’t be executed with a digital payment method.
As street performances continue to navigate these financial shifts, artists reflect an enduring resilience, adapting to a world that increasingly favors technological solutions over traditional transactions.
Original Source: https://www.cnbc.com/2025/08/09/cashs-decline-gives-buskers-the-blues-but-apps-keep-the-green-flowing.html
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Publish Date: 2025-08-09 18:12:00
