Preparing for a Cashless Future – is your business ready?
The rapid digitisation of, frankly, everything is inevitable, and businesses - start-ups and SMEs alike - must face this reality. Because of the advancements in technology, the purchasing behaviour of customers has drastically changed. Whether it is in brick and mortar stores or e-commerce businesses, customers are going cashless.
With the number of people preferring cashless transactions worldwide growing, it is no longer a luxury but an expectation for businesses to go cashless, as well. With credit/debit cards and payment apps gaining more and more popularity, companies risk losing customers to their competitors if they fail to adapt to their Research shows that over 75% of consumer transactions are now electronic. Furthermore, more than 90% of businesses are already using electronic modes of payment.
Is going cashless a good thing for business?
Although most entrepreneurs worry about the transition to a cashless economy, it can be more beneficial to business owners than most people think. Here are a few benefits of cashless transactions for your business:
Quicker transactions with your customers. Because they can easily use their mobile phones or their cards without the need to rummage through their bag for cash, the sale will be fast and easy. Electronic transactions take an average of 20 seconds while cash payments take 38 seconds – they may seem small numbers, but in an age where consumers expect instant gratification, every second of reduced purchase friction matters.
Customers find it more convenient, and because of that, they are more likely to purchase more or return to your store. If you maintain a seamless transaction, there will be fewer barriers towards a purchase decision from your customers.
It reduces financial risks. With card payments, employees are less likely to make mistakes, and it reduces security risks because cash businesses are usually more appealing targets for thieves.
It's more cost effective. When you compute the cost per transaction for cashless payments, it costs less compared to cash payments.
There's less paperwork. When you use electronic payments, everything is handled automatically by the software. Everything will be recorded automatically, so there will be less admin work for everyone in the business.
What can businesses do to prepare for the cashless future?
A cashless future with solely mobile and digital payments, fortunately, will be relatively cheap. Massive and costly hardware devices are not needed because everything will be handled via software. Mobile solutions for cashless transactions will not cost you a fortune. There are mobile solutions that can be easily implemented into your business’ system to make sure that you can cater to several digital payment options for your consumer. The software will be integrated, and it will support multiple payment methods that your consumers use. They want payment options that are easy to use, easily accessible, and are already in their phones. These usually include Apply Pay, Masterpass, Visa Checkout, Alipay, and sometimes paying-by-link in social media platforms.
As a business owner , your role is to understand the new behaviour of your customer and to adapt to these changes. If you know your customers and study their buying habits, you will know the applications they use and why they use them. Use this information to guide your transition to the cashless future. When you invest in a digital and electronic payment facility, you ensure that you are giving your customers a quicker and easier purchasing experience, which is what all businesses should strive for.
April9 can provide you with the state-of-the-art mobile solutions needed for a seamless transition to a business that effectively caters to the tech-savvy generation. With software developers equipped with the knowledge of the best practices and years of experience in the information technology software, we can provide you with the right tools to make sure that you are ahead of the game every step of the way. Be sure to contact us today for a free appointment so your business can effortlessly adapt to the ever-changing landscape of the technology industry.