Cashless transactions are growing at a rapid rate, with cashless transactions overtaking cash transactions for the first time in 2018. Customer convenience and increased adoption of cashless technology across retail and transport sectors have been cited as the major reasons for its growth. While Ireland and the UK are on their way to becoming a fully cashless society, we are still far behind compared to countries like Sweden where only 2% of transactions are now cash-based.
There is still a need for consumer awareness and adoption across sectors to ensure the transition is smooth and no groups of the population are left behind. For small businesses, the decision on whether to accept card payments or not is a big one and can impact their day-to-day transactions as well as profitability. However, with the growth of online transactions and the customer expecting accessible and quick payment methods, having a digital payment solution for any business is vital. Let us now look at some of the reasons why businesses should consider adopting cashless technology:
Average transaction value (ATV): Average transaction value (ATV) of customers using their cards to make purchases is much higher compared to cash-only transactions. People also tend to make more impulse purchases using their cards, Businesses are likely to see more customers based on the convenience factor.
Cost Savings for Businesses: Card transactions reduce the cost of cash handling as it eliminates the need to carry excess cash and notes in-store. It also reduces the cost of cash shrinkage risk (theft and fraud). All card transactions are digitally recorded and easy to track. A receipt only needs to be produced for a contactless payment when a customer requests one, or for a higher value payment. All these factors can add up and contribute to significant cost savings for retailers.
Risk reduction: In card transactions, an Audit Trail present for all transactions that happen through card terminals, reducing the risk of theft for businesses Also. the risk-managed by the card/device – for most transactions, the decision-making process will be between the card or device and the terminal eliminating the risk for businesses to lose their money.
Increased Cash Flow: Credit card payments hit the merchant’s bank account within a couple of days of the purchase date, thereby improving the overall cash flow of the business.
More Customers: Most businesses now accept credit card payments, no matter how big or how small the business operation is. For small businesses, accepting payments in the form of a credit card levels the playing field with big competitors. Giving customers the choice to pay with credit helps keep customers from buying from one of your competitors based solely on the options they must buy the product or service with this form of payment. Having card payment solutions for your business can help attract and retain more customers.
While switching to card payments for any business can have numerous benefits, many businesses are still hesitant to adopt this method. Businesses and Retailers often see transaction fees and costs, payment disputes, credit card frauds, and complexity in switching over from cash to cashless as major hurdles for adoption. However, this process can be quick and easy by partnering with the right payment services provider for your business.
New Payments Innovation is the leading provider of payment terminals and online payment services for businesses offering the best in class technology and solutions to businesses and retailers at the best prices. Choosing New Payments Innovation also gives you access to Revolution, New Payment Innovation’s (NPI) award-winning, provisioning, service management, and reporting platform to help your business grow. With NPI, you also have access to 24/7×365 customer support.