We are constantly hearing about the decline in cash payments. Fewer people use cash every year. Why is that? What is driving this trend, and how will it affect us in the future?
What is causing a cashless society?
In January 2020, we saw Covid-19 hit the UK. The pandemic influenced changes in businesses and consumer trends. During the early stages of the pandemic, many businesses refused to accept cash and instead asked customers to pay with bank cards. ATM withdrawals had plummeted, and only 23% of all payments in 2019 were made using cash.
Is the world becoming a cashless society faster than we thought, or is cash here to stay? Let’s take a look at some expectations and reality of a cashless society for business owners.
Expectation: Accepting only bank cards or other forms of digital payments will improve my sales and lower my costs.
Reality: The best way forward for businesses is to be able to offer all payment options. Offering customers the option to only pay with bank cards will reduce your sales because you will be excluding customers who may prefer to pay with cash.
Providing a variety of payment options will improve, not only sales but also the customer experience. To thrive and make the most sales, your company must be able to accommodate everyone. Even though we may be moving toward a cashless society sooner than we think, a recent article written by a Financial Journalist claims that 8 million people still rely on cash.
Expectation: I will be able to provide a better experience to customers by utilising technology rather than handing cash.
Reality: Card readers, EPOS tills, and loyalty programmes will all help a company work smarter, faster, and to its full potential.
Customers, as we all know, despise waiting in line. With portable EPOS devices and card readers, your lines will be shorter. You will be able to reach more customers and increase your sales.
Not only that, but loyalty programmes allow you to reward your customers without them having to provide personal information or remember their stamp cards.
Expectation: Accepting only bank cards or other forms of digital payments will improve my sales and lower my costs.
Reality: The best way forward for businesses is to be able to offer all payment options. Offering customers the option to only pay with bank cards will reduce your sales because you will be excluding customers who may prefer to pay with cash.
Providing a variety of payment options will improve, not only sales but also the customer experience. To thrive and make the most sales, your company must be able to accommodate everyone. Even though we may be moving toward a cashless society sooner than we think, a recent article written by a Financial Journalist claims that 8 million people still rely on cash.
Expectation: I will be able to provide a better experience to customers by utilising technology rather than handing cash.
Reality: Card readers, EPOS tills, and loyalty programmes will all help a company work smarter, faster, and to its full potential.
Customers, as we all know, despise waiting in line. With portable EPOS devices and card readers, your lines will be shorter. You will be able to reach more customers and increase your sales.
Not only that, but loyalty programmes allow you to reward your customers without them having to provide personal information or remember their stamp cards.
Expectation: Cashless transactions will provide a more secure in-store shopping experience.
Reality: There are some advantages to running a cashless business. Scammers and fraudsters will try everything they can to use counterfeit money. When accepting notes or coins, business owners should ensure that their employees are trained on how to detect counterfeit money. Counterfeit money will always be an issue, and eliminating cash payments is one way to avoid it.
Cashless transactions reduce your company’s vulnerability to theft. Less people are likely to steal and rob your business if they know you don’t keep cash in the store. However, cashless transactions introduce a new set of issues, not for your business, but for your customers. Many customers are more likely to have their bank cards stolen now that the contactless limit has been raised to £100.
There are many assumptions about what would happen if businesses only accept digital payments. However, the decline in cash is a real trend that is likely to accelerate. To best navigate your business through this trend, always do your best for your business and make sure you can accommodate all of your customers.
Find out more
If you want to learn more about motto, check out our blog and case studies to see how we’ve helped and supported a variety of businesses. Please contact one of our friendly and knowledgeable sales reps if you are looking for Online Ordering, EPOS, Payments, or Loyalty Systems.