Imagine saying to your next customer, “We don’t accept cash.” Radical? These days, small businesses going cashless is the trend rather than the unusual exception. Increasingly, Canadian consumers are using cards, mobile devices, and apps to make regular in-store purchases, and cash payments are going the way of the dinosaur. Consider going cashless to keep up, and create an easy checkout process that saves time and effort for you and your customers.
Can I Save Time?
If you’re wondering if adopting a completely cashless checkout system can save your employees time, the answer is probably yes. Better yet, a cashless system can save your customers time, keeping them happier as they complete their shopping with increased efficiency. According to a Cashless Cities report by Visa, seven out of 10 Canadians who use their smartphones for payment said convenience was the main reason for paying with their phone versus other payment methods.
Most small businesses accept credit card payments, and using a card pad to pay gives the customer more control over the payment process and cuts out the step of making change for cash. Upgrading your payment technology to accept mobile payments using a device such as a smartphone is the next step and makes paying a matter of a quick tap to access a mobile wallet. If you’re a quick-serve retailer where getting customers in and out fast makes your business hum, going cashless might make the most sense based on time saved.
Can I Reduce Costs?
Accepting bills and coins comes with basic transaction costs. Your employees must make change, and it’s easy to lose a percentage of sales due to calculation errors. Plus, you probably pay someone to acquire the cash denominations your business needs, count the cash, fill out paperwork to account for the cash, and take it to the bank for deposit. Each step in the process of accepting cash comes with labour costs that can almost be eliminated with a cashless payment system.
A cashless system is also more secure, reducing the costs associated with employee theft. While you may never have thought about how much your business spends to handle bills and coins, going cashless could end up helping your bottom line.
Can I Increase Sales?
Customers spend 12% to 18% more when they use credit instead of cash, and mobile payments in a cashless system can tap into that trend. Canadians are some of the most digitally savvy consumers in the world, with a high percentage owning a smartphone that they use to make mobile payments. Why not go all in on a cashless culture that has the added benefit of encouraging customers to spend?
It’s never easy to embrace innovation and disruption, but payment technology company Moneris estimated in a 2017 report that cash may account for only 10% of the money spent in Canada by 2030. Going cashless has its drawbacks, such as higher fees associated with credit card processing and security concerns involving customers’ electronic information, but it’s the exciting new idea in retail, and it may just be the trend that can invigorate your bottom line.