According to reports, a cashless future may be closer than we think. Even the Bank of America is pushing for a cashless society. When was the last time you paid for an item of clothing or a new book in cash? You may struggle to remember. With the introduction of contactless payments via our debit cards and our smartphones, the need for cash is slowly diminishing.
One day soon, cash will be a collectible, an item that triggers nostalgia and takes us back to the good old days of dimes, cents and dollar bills. While not everyone is happy to see the back of cash, it is inevitable and businesses need to ensure they are ready to embrace this change and move forward with the times.
Fearful of a cashless world? It’s not all doom and gloom, in fact, there are a number of benefits that innovative forward-thinking businesses can enjoy if they decide to embrace technology and move towards cashless transactions…
It will boost speed
Let’s face it, transactions are much faster with a tap of a card or phone than counting out cash, followed by counting out change. By switching to electronic payments only, you can speed up the time taken to process a transaction, and also provide a better customer experience. When you have a queue of customers waiting to be served, this will really help to speed up the process and create a more efficient system.
It will decrease the risk of fraud
When you’re dealing with cash and serving customers, you may often find yourself working under pressure and making mistakes. This is to be expected, but those mistakes can cost businesses big bucks. Cash management can put a strain on small businesses, and fake dollar bills can cause big financial problems and drops in profit. With cashless payments, you eliminate the risk of accidentally accepting fraudulent money.
Your average transaction value may rise
When paying with cash, consumers will often limit their purchasing at risk of having to get their cards out. With the elimination of cash, customers are more likely to spend a few extra dollars than they would if using physical money. Impulse purchases are also more likely to be made when paying via card or contactless. This is good news for small business owners where a rise in average transaction can make a world of difference.
Increase in useful data
With electronic data, we can tell a huge amount about customers spending habits and overall buyer behaviour. We can tell what they bought, what they purchased with it, and if they responded to any offers.
Data is much easier to analyse when stored in one place, and you will be able to gain a better understanding of your customers and play this to your strength. Many outlets have already ditched the paper and moved over to digital stock management and it might be time for you to do the same!
Easier international payments
As countries around the world begin to adopt a cashless way of living, international payments will become much easier and eliminate the need to change up your dollars for foreign currency. As the world changes and moves with cashless living, fees and charges for payments abroad will hopefully reduce.
Of course, there is the counter-argument that a cashless society could cause issues such as hacking and a reliance on tech, but as we progress into this digital world, it’s inevitable that this is the way we’re heading we might as well try to embrace the positives while looking to combat the negatives.