Does a Cashless Society Affect Your Business?

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Cashless Society

Cashless Society

Approximately 40% of your customers carry less than £13 in their wallet. An intriguing and, to some businesses, alarming statistic that has come out of official 2014 Financial Security Index charts.

With the growing rate of technology, contactless card payments have become the most common form of transactions in which debit cards, apple pay and smart watches all contribute to.

But how does this affect your business?

For online retailers and B2B businesses, the reduction of cash in your customer’s wallet probably doesn’t concern you. Cashless payments do however affect shop keepers, restaurant owners and retail managers.

Imagine going to a restaurant to enjoy a meal, and when receiving the bill, you’re told that the card machine is broken and its cash only. Not great for business if they’ve only got £13 in their wallet.

Ensuring you have a working card terminal that features contactless is crucial to keeping a happy customer that is able to pay efficiently. Connecting directly with your merchant account and bank account, it’s also the easiest way to keep record of your accounts – so shouldn’t we be in favour of cashless?

The research shows that approximately 40% of individuals carry less than £13 in their wallet, with an indicative 9% stating they didn’t carry cash at all.

So will we move into a cashless society?

It’s likely – with the ongoing developments in the fintech industry and the numerous ways of paying through your mobile phone, smart watch and debit cards, we should expect to move into a society void of cash.

But that might not be the case. Cash in hand provides a sense of security and affordability to businesses. You as a business owner are less likely to be a victim of fraud by receiving cash in physical form, and you won’t be hit by the percentages taken from card payments by transactional costs.

For some businesses, it’s in a good interest to keep cash coming through their doors.

Take a look at Choice Business Loans interactive tool to see if you’re carrying less or more cash than the average person.

The world is moving into a cashless society in which 40% of your customers carry less than £13 in your wallet. If you work in the hospitality industry or manage a retailer, it might be time to update your card terminals to improve customer experience.