When a credit card company ‘declared war’ on cash in 2017, the goal was more of a marketing decision rather than a practical one. Of course, by promoting cashless payments, the hope is that their consumers and potential customers would adopt this mode of payment and use their credit cards, especially in the retail business.
Three years later, the pandemic has ushered us into the practical side of adopting the cashless payment option: safety. What with the entire world in the grips of a virus, it’s only practical to minimize the possibility of contracting the disease by altogether removing contact, and cash is by far the mode of transmission that scientists fear would drive up the number of victims.
The last 18 months have seen the proliferation of various services catering to the needs of the locked-down market. From food to groceries and apparel to various other sundries, the world in lockdown continues to buy and consume. A welcome advantage of all these economic activities is the ability to pay digitally.
Digital Payments
Digital payments, or in today’s moniker, cashless payments, have been around for some time before the pandemic, but it has gained popularity even more as governments along with businesses promoted its utilization to safeguard public health. Various cashless payment methods have been developed by the financial technology industry—the digital wallet, QR Code, RFID cards, electronic POS— all with the same goal: minimize cash changing hands and potentially passing on the virus.
Cashing in on Cashless Payments
Along with the consumer, another benefactor of the cashless payment movement is the retail business industry. The innovative payment technology has been developed enough to enable online transactions at the speed of the internet—instantaneously, in a word. And who wouldn’t want this convenience? Business establishments are adopting innovative payment methods in order to compete more proactively. It does not matter if you’re a brick-and-mortar store or a chain store or even a kiosk at the strip mall, having the option to accept cashless payments. Below are some of the advantages of accepting cashless payments if you are in the retail business.
Doubtlessly Convenient
If there ever is a generation that appreciates cashless payments today, it would be the millennials. With half of their world revolving around the digital space, millennials are tech-savvy which makes them more open to emerging innovative payment methods. With a tap on their mobile phones, those who choose the cashless payment route are saving time whenever they purchase. Having the capacity to process cashless payments would attract more customers who have bought in on the latest fintech innovations.
Breezy Checkouts
With the world going back to normal, retail businesses will soon enjoy a resurgence of customers at their locations, and with this, long queues are not far behind. With the option to accept cashless payments, long lines may be avoided, enabling you to serve customers more efficiently. The more customers served, the better it’ll be for your business, too.
Financial Reconciliation
One of the toughest things to do at a retail store is balancing the cash register at the end of the day. First, you need to count all the cash in the register. Then you need to check it against the receipts. If there’s an error, you’d have to start over. If you’ve been working for eight hours assisting customers and you’d have to balance the books, then take that day’s earnings to the bank—well, that makes for a tiring day indeed. And you’d have to do it five or even six days a week.
While going completely cashless in your retail transaction is still some ways off (due to central bank regulations, issues with unbanked and underbanked sector of the populace), having the option to accept cashless payments would lighten the load a lot. Purchases using cashless transactions enable the merchants to easily reconcile sales for the day, making for a lighter workload.
Less Possibility of Theft
While this may be a distasteful reality, it is reality, nonetheless. And this reality has some employees taking a couple of dollars every now and then. Then there’s the possibility of criminals breaking into your store and stealing your hard-earned money. The sage advice is to go cashless. There is absolutely no way that light-fingered employees can steal money that’s practically in your business account already (as processing times may vary from bank to bank). If not for all the reasons already stated, then this is the one reason that should be convincing enough to explore the alternative innovative payment methods out there.
Safer, Now
Let’s face it—nobody knows for certain when mankind will be able to completely eradicate the menace that is COVID-19. With less cash changing hands, it is to our collective benefit that we adopt cashless payments. As a retailer, you are safeguarding yourself and your staff if your store is equipped with the latest fintech innovations. In addition to safety protocols in place at your store, this may be the one precautionary measure that will pay major dividends in the long run-in terms of being able to stay safe.
Possibly More Spending
Consumer behavior analysts say that if a customer is paying with a card, it is easier for them to spend more than they originally intended to. Why? Because seeing a limited amount of cash in their wallet gives them a visual limitation on their spending. Have a POS terminal at your cashier and see how easy it is for your customers to ‘add to cart!’
Before you go…
So now you’re convinced that as a merchant, it is to your advantage to be able to transact using cashless payments. But where do you go from here?
The answer is to first do your research and find a provider that is respected in the industry and highly rated. Look for one that offers an all-in-one payment platform with multiple payment gateways that is fully secured and PCI compliant. You should also look for one that has deep vertical expertise and can integrate the latest technology that offers the best solutions for a seamless payment experience. One smart option to consider is CloudBanking. At CloudBanking, they make it easy for both you and your customers to transact painlessly. There are many other services providers out there, but not all are created equal. Be wary of payment solutions providers who require you to do an audit of your regular customers to see if the technology they’re offering would match customer preferences. It should work the other way around.
Most importantly, seek solutions that are the right fit for your business model, customer base, and long-term goals. And listen to your gut instincts! Do you have a question related to cashless payment options? Leave a comment below or talk with CloudBanking directly at www.cloudbanking.co.
