Cash has been the backbone of local businesses for decades, but in today’s society that’s changing. Consumers are making the move to card payments at a rapid rate, with payment in cash making up only 28% of all UK purchases in 2018, and experts believe they’ll make up as little as 9% by 2028.
With one in 10 British adults already leading a largely cashless life, and the UK as a whole ranking as the third most cashless country in the world, is it time for businesses to bin cash payments completely?
It’s a pretty divisive concept, but some experts believe it’s the way to go thanks to the perks on offer. Whether you’re for or against the idea, it’s always useful to clue yourself up on the facts, so, to bring you up to speed, we’ve pulled together six benefits of going cashless.
First and foremost payment on plastic is three times faster than traditional cash transactions. According to Visa, cash payments take between six and seven seconds to process compared to just one or two seconds for contactless payments.
Speedier transactions will keep consumers happy, after all, who likes waiting around? But they’ll also allow you to get through more sales in a day which will boost your profits.
For businesses who often find themselves with hefty queues, particularly during peak times like commuting hours, opting to go cashless will speed up the check-out process significantly, cut down on queueing time, and increase the chance of consumers who’re in a hurry popping in to make a purchase.
We harp on about the importance of customer convenience a lot on the takepayments blog, but that’s because it can’t be emphasised enough - studies have shown it’s one of the top deciding factors in purchasing decisions.
Thanks to contactless and mobile payments, spending money is now more convenient than ever for consumers. Opting to go cashless eliminates the need for shoppers to find an ATM and withdraw cash, or head to their bank’s nearest branch and wait in a line, or worry about carrying enough change to make a small purchase - all of which can be enough to put them off completely.
Cashless transactions are safer in three ways:
When consumers are carrying their card, they’ve been shown time and time again to spend more than if they were carrying cash. Why? Because having a finite amount of cash in your wallet will put an upper limit on your purchasing compared to the flexibility on offer with a card.
Experts in the field have coined this ‘friction-free spending’, but some studies have even discovered that consumers are conditioned to want to spend more at just the sight of a credit card logo.
We mentioned already the improved transaction time that comes with going cashless, but the time-saving benefits don’t stop there. Think about it, how much time goes into handling cash for a business? It involves regular trips to the bank to make deposits and needs counting up at the end of every day.
One business who took the plunge and went cashless put the decision down to their desire to grow their business and explained how two hours of every business day was lost to cash management per store.
By going cashless then, you’d save a fair amount of time that could be put towards other activities aimed at benefiting your business.
Picture the scene, you’ve been hard at work for 10-12 hours and it’s time to close up shop, but not until you’ve gone through the cash register, which you then discover is short. What do you do next? You have to work out what’s gone wrong.
Imagine not needing to sift back through the books, receipts and paperwork to discover why this is, but instead having a simple log of every transaction.
Going cashless makes accounting a doddle, not to mention more accurate since you cut out the occurrence of human error when handing out change.
Top tip: take your accounting to the next level and opt for an EPOS system which creates automated reports that can be sent straight to your accountant.
Ready to start accepting more card payments? Whether you’re convinced going cashless is the future or you just want to offer your customers more convenience, when it comes to taking card payments you’re in the right place.
Here at takepayments, we offer card machines to suit businesses of every shape and size including portable, mobile, countertop and our all singing all dancing EPOS till system. Get in touch with our experts on 08082 393294 and see what we can do for you.