4 reasons your small business should go cashless
When was the last time you paid cash for something? Personally, it’s rare for me to even carry it these days. And with the rise of new mobile and digital payment options like Apple Pay, Samsung Pay, PayPal and Google Wallet, cash payments are only going to become less common. In fact, according to Worldpay’s 2018 Global Payment Report, the global use of mobile payments is forecasted to increase to 28 percent in 2022, surpassing credit cards and cash.
Given this trend, it could be time to consider eliminating cash payments from your business altogether. It might seem crazy to stop accepting cold, hard dollars, but there are actually a number of benefits. Check out these three reasons your small business should consider going cashless.
1. Customer convenience.
The Covid-19 pandemic changed the way consumers shop. It also changed consumers’ expectations of convenience and service provided by businesses large and small. As they’ve grown comfortable with customer-friendly innovations such as mobile order, curbside pickup, delivery and self checkout, many consumers have a desire to see these shooting options remain as the “new normal” of the retail environment.
Maintaining a cashless business is vital to the logistics and efficiency of these services. Obtaining payment electronically prevents employees from dealing with cash in parking lots or at delivery sites and keeps the process flowing smoothly.
2. It boosts checkout efficiency.
Consumers today are busy and don’t want to spend time waiting in line to check out. That’s why companies like Starbucks have been promoting mobile order-and-pay apps that allow customers to pay ahead of time. In addition, Amazon Go is leading the trend of cashierless stores. There’s no lines, no checkouts; just grab and go. According to eMarketer, 43 percent of U.S. internet users would rather try scan-and-go than wait in a checkout queue.
Plus, by going cashless, you can even do business on the go. Want to participate in a pop-up shop or local business fair? Instead of being tied down by a register, mobile and digital payments enable you to be where your customers are.
3. It makes accounting easier to manage.
When your business deals with cash, you literally have to count every penny. This can be frustrating, especially on those days when the register comes up short and you can’t figure out why. But with mobile and digital payments, every transaction is automatically tracked and recorded, which means less room for error on your part and less time spent manually tallying and recording transactions. You’ll also save time by not having to run to the bank to get rolls of change or make daily deposits. Furthermore, with real-time data on the cash flow of your business, you’ll be better able to spot opportunities for improvement and make informed business decisions to improve your bottom line even more.
4. It reduces risks.
For obvious reasons, keeping cash on hand increases the risk of theft. Not only do you have to worry about being robbed by random criminals, but unfortunately, you also have to worry about your own employees taking from the register. Not too long ago, the owner of Baltimore’s Park Cafe & Coffee Bar spoke with The Baltimore Sun about going cashless after being robbed at gunpoint five times in four months. The owner had some concerns about loyal customers who didn’t have credit cards, but he was committed to working with those patrons to provide them with gift cards. Overall, going cashless can increase the safety for your employees while keeping your company assets secure.
Going cashless isn’t the right choice for every business, and you do have to consider your customer base. But if your customers are savvy and loyal, they’ll stick around through the cashless revolution. Now that you’re aware of the benefits, you can make an informed decision for your business.
Source: Entrepreneur with contributions from the FiNet staff