Why are businesses starting to not accept cash payments?
The financial world goes through phases where certain things start to change. Right now, we’re in a position where there’s almost a battle between cash and cards. Ten or twenty years ago, you could walk into any store and pay for something in cash. You would never find a business that didn’t accept cash payments. If anything, it was the opposite; many didn’t let you pay via credit or debit cards.
However, times are changing.
Walk into a store now, and you will usually be able to pay by chip and pin, contactless, Apple Pay, and so on. Companies are better equipped to accept card payments than they used to be. Interestingly, you will also see some companies with ‘cash-free’ signs in the window. That’s right, many modern businesses no longer accept cash payments – oh how the tables have turned!
The question is, why? Why are businesses no longer accepting cash payments? Some still do, but why is this idea of a cash-free business becoming more popular? Let’s take a look…
Improved Financial Technology
The underlying reason for the cashless movement is the growth of financial technology. These days, you can spend five minutes looking for a virtual terminal online, and end up with the ability to make various payments through your computer. It’s surprisingly simple to connect a card reader to any device, then accept payments through it. Before, you’d need those old fashioned readers and a proper cashpoint terminal. It was expensive and required a lot of effort. So, companies didn’t bother if they didn’t have the money. Now, it’s more affordable and accessible, so small businesses can do it.
Far Greater Efficiency
There are two ways a cashless business is more efficient. Firstly, paying by card saves a lot of time as there’s no need to worry about handling cash. Customers don’t waste time counting out their money, you don’t waste time putting it away and counting up change. With contactless card payments, a transaction can be over in seconds. This allows you to get through more transactions and prevent customer grouchiness as they won’t be standing in-line for ages.
Secondly, you no longer need to collect up your cash and take it to the bank. This is highly inconvenient and inefficient. Now, your payments are all processed through your terminal and sent directly into your business account – simple.
When you have cash on your premises, there’s always the risk of being robbed. But, if there’s literally no cash and no cash register, then you’re not a target for burglars. Even if someone tries to steal from you, they won’t be able to get anything as they physically can’t access the money.
All in all, you can see the benefits of the cashless approach. The obvious drawback is that you cut off customers who like paying in cash. But, in the modern world, these customers have become more and rarer. Most people only pay in cash if they’re forced to.
In conclusion, how far will this trend go? Could all businesses be cashless in a few years, or will there always be the need for cash in some industries? We’ll have to wait and see.