Why Businesses Need to Embrace the Cashless Revolution
It has long been established that only a small fraction of the total number of money in the world today actually exists in physical cash form, with the most popular guess being about 8%. However, this is soon to be an even smaller percentage, as businesses, banks and governments have embraced the technological advancements that have allowed transactions to be carried out without the need for any cash, instead, using contactless card payments and transfer apps like Paypal and Transferwise.
Image by Jonas Leupe
One area which has been a little slow on the uptake in this regard has been smaller businesses, particularly in the US, which ranks among one of the worst countries in the developed world for the ease of cashless payments. In an increasingly digital world, it’s worth exploring some of the key advantages of making sure your business follows the trend and embraces the cashless revolution.
Efficiency & Convenience
This is probably the most tangible benefit of ensuring your business is equipped to handle a wide range of cashless payments. With tap and pay transactions now being the norm in most countries, one of the most noticeable improvements has been in the efficiency for the business and convenience for the customer. A contactless payment typically takes less than a second to process, while a cash payment can easily take up to a minute, meaning you’re driving up efficiency and, therefore, saving money.
It also makes all transactions easier to record, as they’ll be stored in multiple formats online and in an internal system, meaning that, when it comes to taxes, expenses, and budgets, it’ll be a much easier process than trawling through receipts.
A Global Customer Base
Ensuring you have multiple cashless payment systems in place expands your customer base exponentially, as people can pay for your goods and services from anywhere in the world.
Electronic forms of payment have become the norm in a huge range of global businesses, including casinos, which should tell you just how far along the cashless revolution is. As well as more traditional forms of cashless payment, casinos are also embracing the use of echecks, which work similarly to a physical check, in that the recipient will usually receive their funds a few days later, but it is done entirely electronically. This form of payment is a relatively recent frontier in the cashless economy and is becoming increasingly popular with businesses across the globe.
Featured image by Matthew Kwong
Whether you’re buying groceries via PayPal or using echecks with Canadian casinos, the ability to conduct transactions online from anywhere in the world is the defining consumer trend of the coming decade.
Some countries these days are virtually entirely cashless, such as Sweden and the Netherlands, so you can expect that increasingly large demographics of consumers will be growing accustomed to not carrying any cash with them at all, and you want to be prepared for that when they decide to walk into your business. It also allows people to pay for goods in whatever currency they want, rather than having to go through the long process of swapping your cash for local currency.
In a world where cloud hacking is taking up more headline space than ever before, digital commerce might not seem like the safest port right now. However, your e-cash is always going to be significantly more secure than physical cash, which can be taken by virtually anybody in a wide variety of circumstances, from armed robbery to pickpocketing. Going cashless mitigates these risks, and with cybersecurity making bigger strides than ever, it seems that the future of risk-free finance is cashless.
There are endless reasons to go completely cashless, but make sure to speak with a financial advisor to see if it is the best fit for your business.
Featured image by Eaters Collective