You’ve probably walked into a small corner shop and heard:
“Sorry, we don’t take card payments. We’re cash only”.
It’s a common occurrence. However… have you ever heard the opposite?
“Sorry, we don’t take cash. We’re card payments only”.
As strange as it sounds more and more businesses are moving towards this cashless model, and deciding to take card payments only.
We heard about this trend and wanted to investigate: Why are businesses turning cashless?
Why Are Businesses Becoming Card Only?
With card and contactless payments growing ever more popular, it seems entirely plausible that you could run your business on card payments alone.
Consider how frequently you yourself pay for things in coins and notes. Well, apparently businesses are reporting that they are taking cash payments for 3 in 10 transactions.
That figure has dropped significantly since the introduction of contactless and mobile payments, but what are some of the big benefits of taking only card payments:
No More Counting Change
The first big reason is – it will save you time.
The time that it takes for a card system to process, allocate and store card payments into your financial accounting software is remarkably quicker than the process of handling cash payments.
Whether you’re taking the payment, counting the change, adding up the till or typing up the earnings for the day – all of this time is yours with card payments.
The system does it all for you!
Little Reason For Break Ins
If you’ve advertised clearly that your business only takes card payments, it will detract potential thieves because they know if they break in at night, there will be no cash on site.
Also, through not storing cash at your premises you might also see your insurance costs decrease – saving you money on a yearly basis.
The Future Is Now
The rise in card, contactless and mobile payments has come fast. Future trends seems to be leaning towards fingerprint and other identification based payments – so will there be a day where physical cash ceases to exist?
If trends continue at the same pace, Access to Cash estimate that we would “see an end to cash use by 2026.”
Cashless Doesn’t Suit Everyone
However, as we plummet back down to reality it’s important to remember that not every business will fit this model.
There are lots of things to consider:
- Who are your target customers?
- Are some poor, or elderly? Both of these people groups heavily use cash for their day to day expenses.
- What happens if power goes down in your place of work? Or the card reader doesn’t work?
- Is your business situated in a tourist hotspot? Tourists are well known for getting cash for their visits from exchange bureaus.
Seriously Though…. Could You Go Cashless?
Going cashless, is a serious option. Many businesses are doing it, and preparing for what they believe is the inevitable future.
We thought it was an interesting topic – and invite you to join in the discussion. Do you think cashless businesses are the future? Would it work for you?
Let us know on social media, and follow us for more business blogs like this.
Get More Business Blogs Like This
Interested In Our Accountancy, Bookkeeping, Payroll Services?
Get In Touch Below