According to the latest statistics from the 2017 Capgemini World Payments Report, non-cash transaction volumes around the world grew by 11.2% from 2014 to 2015. Countries like Sweden have seen the circulation of notes and coins drop year after year, and many are tipping the Scandinavian country to become the world’s first cashless nation. As the idea of a cashless society grows across the globe, business owners are keen to know what its implications will be.
Get Ready for a Cashless Society
People the world over are increasingly making fewer cash withdrawals and using alternative methods to pay for items, such as using cards and phones. There are now several ways to process credit card transactions from smartphones, and there are various new ways in which businesses can use mobile credit card payment processing systems. For instance, you could use mobile credit card terminals like the IProcess – Magtek ADynamo, which allows you to process card transactions from your iPhone or iPad securely. Another option is the Clover® Go, which enables you to swipe, dip, and tap payments from anywhere you have a Wi-Fi connection. The more up-to-date your card transaction processing systems are, the more you can keep up with the fast-changing way customers are paying for products and services.
Advantages of a Cashless Society for Businesses
Business owners will gain various cost and efficiency benefits by moving into cashless transactions. For example, paperwork becomes minimized, and both your accounting team and your employees will always know their spending patterns and balances via automated reporting. Also, if expenses need to be approved, they can now be approved remotely and immediately. Other advantages include:
- Less Crime: Because your business premises will not hold any physical cash, there is much less risk of burglary. That means you are likely to have lower insurance premiums.
- Saving Time: Without the faffing of handling cash, you will save a considerable amount of time in your daily operations, especially during peak trading hours.
- More Convenience for Customers: By offering cashless ways of paying for products or services, your customers will not have to go to the ATM to withdraw money or break into big banknotes.
Disadvantages of a Cashless Society for Businesses
Expense technology will be a crucial driver in the cashless revolution, but staying up-to-date with the latest technologies and processes will initially be time-consuming and costly. So, while your business can become more efficient and save costs in the long run, the changeover phase could be challenging. There are other disadvantages to a cashless society, too, such as:
- Inconvenience for Poorer Customers: Although cashless payment options are beneficial to many customers, it can be less advantageous for poorer customers. Many people with little money prefer using cash because it helps them to budget. Many people prefer the privacy of using cash too.
- Problems During Power Outage: Relying entirely on technology means if there is a power cut or if banking systems go down, you will not be able to take payments.
- Increased Chance of Hacking: Although going cashless can prevent burglaries, it can increase the chances of fraud and data breaches.