5 Advantages of Making Your Business Cashless

Every business needs cash flow, but does your business need paper cash to thrive? Until fairly recently, the prospect of running a business without paper notes and coins would have been unthinkable, but the growth of electronic payments, which has been accelerated by global events this year, has made the concept of a cashless company a working reality. Here we consider the case for dropping cash in favour of card and other electronic payments. 

1. Cash Is in Decline

It’s no secret that cash payments have been on the decline for years: in 2018 they accounted for just 28% of all purchases in the UK, and within a decade less than one in ten transactions are expected to be cash-based. Like the fax machine and the cheque book, cash is approaching obsolescence as a new generation is raised on the internet, smartphones, and digital payments. While your business shouldn’t abandon cash just because there are more high-tech ways to pay, as customer demand for cash dwindles, there comes a point where you can no longer justify offering it as a payment option.

2. Digital Payments Are Faster

Electronic payments overtook cash in popularity a long time ago, and in the last five years they’ve beaten it for another metric: speed. The introduction of chip and pin readers, removing the need to sign card transactions in-store, began the demise of cash, while the introduction of contactless payments sealed its fate. NFC-equipped smart devices have made digital payments faster than handing over a £20 note, while web browsers that store card details have made online payments just as fast. Dropping cash altogether will save time, not only for your business, but for your customers who are waiting in line.

3. Electronic Payments Are Safer

This one shouldn’t need much explaining, but carrying a bunch of cash around is a security risk you could do without. Go cashless and your business is no longer a sitting target for criminals, while the weekly cash run to the bank is no more. If you operate a brick-and-mortar store, ditching cash means you don’t have to leave the till open in your shop window every evening to convince crooks that there’s nothing worth taking: the “cashless” notice on your storefront says it all.

4. Card Payments Increase Average Spend

If your customers are paying with cash, they’re limited to what’s in their wallets. If they’re paying with card, the only limit is their account balance. This isn’t about pushing your customers to spend more, either: it’s about giving them the ability to buy what they want without scrambling around for cash.

5. Less Administrative Cost

Reconciling cash payments is time-consuming and inefficient. Go fully digital and you’ll free your staff from having to balance the till and cash up every night, and spare them from having to nip to the bank every time they run out of change. You’ll also eliminate the charges associated with paying cash in and out of your bank. Coupled with the elimination of human error when counting cash and the cost and time savings can quickly stack up.

Cash isn’t yet dead but its days are numbered. Embrace digital payments and free your business from the burden of carrying cash.