The long-lived standard of paper and coin currency is nearing its end. The simple truth is that debit and credit cards, mobile wallets, and various other ways to pay are bringing about the beginning of the end of Washington, Jackson, and even Franklin. Businesses are going cashless.
The truth is that when businesses accept cash payments, there is a certain element of risk involved. First, you have the human element. A clerk has to take a payment and in most cases must give the customer back some change. This is assuming that the clerk has the ability to do the simple math it takes to subtract the transaction total from the amount tendered.
While the average third grader can do this, you know what your mother always told you about assuming. In addition to this oversight, bills can stick together, drop on the floor, or even be mistaken for a different denomination. Also, when employees do not have to worry about this exchange of currency they can focus on providing superior customer service.
When cash is accepted as a payment it also decreases the speed of the transaction as compared to accepting credit cards. The clerk must take the extra time to count out the change and double-check to make sure it is accurate. Credit card transactions are mostly completed by the customers themselves through POS terminals and swipers. Thus freeing up time for the employee to wrap up the sale and provide the best customer service.
The next con about accepting cash payments is that it tends to not be very clean. With the average lifespan of a $1 bill being 18-22 months, you can imagine the amount of dirt, bacteria, and other generally gross germs. Decreasing the amount of cash used in transactions can help improve the overall health of the employees at your business. And may also keep your customers from getting sick too!
According to a 2009 University of Massachusetts study, 90 percent of 234 paper bank notes tested positive for traces of cocaine. Another 2001 study found traces of heroin, methamphetamine, and PCP. While these levels are very low and not enough to make someone sick, it still makes you think about what our paper money goes through.
It’s hard for anyone to deny that payments are shifting from greenbacks and coins to plastic and electronic. And while cash isn’t going to disappear overnight, it benefits merchants to adopt the technologies of the future to get ahead of the curve.
Benefits Of Business Going Cashless
The shift, towards a cashless business model, has become increasingly popular in today’s landscape offering a range of benefits that go beyond mere convenience. As technology advances businesses are realizing the advantages of adopting cashless transactions. Here are some key advantages of a business going cashless;
- Improved Efficiency and Speed;
One major benefit of embracing a cashless approach is the enhancement in efficiency and transaction speed. Electronic payment methods like credit cards and digital wallets streamline the payment process reducing the time required to complete transactions. This not only improves the customer experience but also enables businesses to serve more customers in less time ultimately boosting productivity. - Lower Operating Costs;
Handling cash involves expenses such as security measures, cash handling fees, and the need for physical infrastructure like safes and registers. By transitioning to a cashless system businesses can reduce these operating costs. Allocate resources effectively. This aspect is especially relevant for medium enterprises (SMEs) where every saved penny contributes significantly to overall profitability. - Enhanced Security;
Cash transactions inherently carry security risks such, as theft and counterfeiting.
Going digital with transactions helps reduce these risks because electronic payments leave a trace and often have built-in security features. Digital payment systems use encryption and authentication measures creating an environment, for both businesses and customers. This can result in a decrease in fraud and unauthorized transactions. - Insights from Data Analysis;
Cashless transactions generate data that businesses can use to analyze customer behavior and gain insights. By studying purchasing patterns and preferences businesses can make decisions about inventory management, and marketing strategies. Engaging with customers. This data-driven approach allows businesses to customize their offerings to better meet customer needs building long-term relationships. - Convenience for Customers;
In today’s convenience-oriented world cashless transactions provide customers with a seamless and hassle-free payment experience. With the increasing availability of mobile payment options and contactless cards, customers can make purchases quickly without the need, for cash. This convenience not only enhances the customer experience but also appeals to tech-savvy consumers who prefer efficient modern payment methods. - Global Access;
Cashless transactions simplify business operations by eliminating the complexities of currency conversion and cross-border transactions.
Digital payments offer advantages to businesses operating on a scale facilitating smoother operations and unlocking new market opportunities. This is particularly beneficial, for eCommerce companies that serve customers worldwide. - Advancement of Financial Inclusion;
Embracing cashless transactions can contribute to promoting inclusion by granting individuals who lack traditional banking relationships access to banking services. Mobile banking and digital wallets act as gateways for underbanked populations enabling their participation in the economy. This fosters growth, and reduces poverty. Creates a more inclusive society.
Conclusion
To summarize the benefits of transitioning to a cashless system extend beyond convenience. The efficiency, cost savings, heightened security measures, and data-driven insights associated with cashless transactions position businesses, for growth and success in a digitalized and interconnected world. As technology continues to advance adopting a cashless approach is not merely a passing trend but rather a strategic decision that can significantly impact a business’s performance and enhance its competitive advantage within the market.
Contact one of our payment experts today at 877-517-4678 to learn more and get setup to take payments.
