The cashless society trend is growing globally – and it’s a trend especially evident in small businesses.
Today, less than a quarter of retail payments involve cash. That doesn’t mean that a cashless society is inevitable or entirely appropriate for all businesses at all times. But what it does suggest is that there are clear benefits from going cashless for some.
Faster, safer – and more future-facing
The rapid take-up of card payments by SMEs in the UK is something to be proud of, and testament to the hunger and energy of our tech and financial sectors.
For customers, the benefits are obvious. It’s another way to pay – and for many, a faster, easier and safer way to pay.
For businesses, the benefits are in many ways similar. Less cash means fewer trips to the bank; going cashless means none at all. Contactless payments can cut queues and please customers too. Businesses can serve more customers – and more customer types. After all, evidence suggests that younger customers simply don’t habitually carry cash around.
Benefits for of a cashless society extend much deeper
A cashless society offers numerous benefits, transforming the way transactions are conducted and enhancing economic efficiency.
Digital payments reduce the risks and costs associated with handling physical cash, such as theft and the expenses of printing, storing, and transporting currency. They also streamline transactions, making payments faster and more convenient for both consumers and businesses, thereby boosting overall economic activity.
Electronic payments create a transparent and traceable record, aiding in the reduction of tax evasion and illicit activities. This increased transparency also facilitates better financial planning and inclusion, as digital payment systems often provide access to financial services for unbanked populations.
A cashless society supports innovation in financial technology, driving the development of new payment solutions and financial products that can cater to diverse consumer needs. Transitioning to a cashless society can lead to a more secure, efficient, and inclusive economy.
Open banking
The Fintech sector is the key driver of cashless solutions that allow small businesses to offer a slick and efficient electronic payment system without breaking the bank. And these innovators are making their mark all across society.
Lat year it was widely reported that more than one card payment provider was working with the Big Issue to allow its homeless sellers to take contactless card payments.
Now it’s been revealed that Monzo, a huge innovator in the finance sector, is working with homeless charities to offer a way of opening a bank account without a fixed address. This issue has been a huge problem for any homeless person trying to do anything from voting to securing a job.
The finance sector, and cashless businesses, are sometimes seen in a negative light. But most of the work they do is genuinely helping small businesses to keep pace with customer demands. And sometimes, the fintech innovators go even further to solve issues few others have tried to.
If you’re a small business owner looking for a card payment solution, check out our terminal range and packages at: business-payments.
