Year after year, cash payments are taking up a smaller percentage of retail transactions. As of 2017, cash accounted for only 37% of all transactions. With more and more digital payment options popping up, some restaurants and retail locations have begun phasing out cash transactions.
Before jumping head-first into this growing trend, here are some pros and cons to consider:
- Employee and business safety – With no cash on premises, businesses become less of a robbery target. People spend money where the feel secure and employees who don’t have to stress about making cash drops and the end of the night can focus their energy on the customer experience.
- Faster transactions – The average time to complete a cash transaction is about 30 seconds. Mobile wallets (Google Pay, Apple Pay, etc.) average a mere 2.5 seconds to process. Faster transactions make for happy, repeat customers.
- Make more money – Paying digitally means customers aren’t limited to cash on hand, and therefor spend more. On average consumers spend 12-18% more when paying with a credit card. The faster transaction times afforded by digital transactions also means you can check out more customers per day as they will be less likely to “abandon their cart” if they see the line is moving quickly.
- Alienation of customers – Not all customers have a traditional banking relationship or a smartphone. Even those with bank accounts like having options on how to pay. By eliminating cash transactions, businesses may lose customers and profits. 37% is still a significant amount of income.
- Data Breach potential – While going cashless reduces the immediate threat of an armed robbery, thieves can still run off with your customers’ data. As much as you can do to protect your and your customers’ information from hackers, a breach can mean more than just a loss of money.
As you can see, there isn’t a simple answer to going cashless. Digital payment options continue to pop up and, regardless of how you feel about cash, embracing the payment options your customers want will help you keep them coming through the door.
Newtek Merchant Solutions can help you figure out the best solutions for your business, with latest payment processing hardware options, plus Zero Cost processing, to keep you and your customers happy. Reach out today at 855-763-9835 or click here to request a call.