Businesses large and small are seeing increased profits, as well as operations efficiency by going cashless. A global marketplace that accepts only plastic may be on the horizon.
A U.S. consumer payment study found that 61 percent of Americans have two or more credit cards. The same study also found that 75 percent of consumers prefer to use cards instead of cash.
Debit or credit cards are becoming the preferred payment method for consumers, and businesses are happily meeting their needs. Less cash on hand and opening businesses to a new customer base are just a few benefits.
Starbucks Began Testing “Card Only”
At the start of 2018 Starbucks began testing a cashless payment policy in one of its downtown Seattle stores. “The test will help us understand how cashless forms of payment may impact our customer experience,” a Starbucks spokesperson told The Seattle Times.
This came after the online ordering app and mobile payment feature was a success for the global coffee corporation. The debit or credit only stance has improved operation efficiency for Starbucks and other businesses taking credit and debit cards only.
For instance, businesses don’t need to keep cash on hand, deposit or get small till bills at banks, and the overall transaction speed is faster, which can improve the customer experience.
More Restaurants Going Cashless
More and more restaurants are going cashless. The efficiency of being a cashless restaurant has decreased turnaround by seconds. This may not seem like a lot, but shaving time off table turnaround is important.
Midwest salad chain Sweetgreen, and gourmet hamburger chain Shake Shack has gone cashless. There are concerns, however, that accepting only cards may eliminate a customer base without access to credit cards.
“For customers, patronizing restaurants that don’t take cash means one less payment option when they need a quick meal during an all-too-short lunch hour,” Zlati Meyer of USA Today explained.
But these worries may be minimal for businesses. For example, Starbucks works around this issue with the implementation of the Starbucks card. Customers can use cash to purchase points for their Starbucks card and simply use that instead of cash.
5 Benefits for Businesses Going Cashless
Going completely cashless may not be right for every business. However, one fact remains, accepting debit and credit cards streamline operations and increases profits. Here are five ways taking credit and debit cards can benefit your business.
Builds Customer Trust
When you are accepting big name credit cards, like Visa, MasterCard, and American Express, you are telling customers you are a real business. It essentially legitimizes your business. After all, if big credit card companies are partnering with your business, so will customers.
When potential customers see that your business takes Visa, or a card they carry, they will be more inclined to make a purchase. This is because they know the credit card company protects them. It is the peace of mind that matters, and business owners need to put themselves in the consumers’ shoes to optimize those profits.
Yes, credit card payment fraud and chargebacks exist. However, technology has increased security levels on card payments, minimizing risk for businesses. Fraud is becoming more difficult with the implementation of chip technology. Banks are also on board with improving card payment fraud for businesses.
Improves Day-To-Day Operations
If your business doesn’t take credit or debit cards as a form of payment, you probably spend a lot of time at the bank. Cash only businesses often need to have more cash on hand, in small denominations for customer change. Integrating a card payment method can change that. You will also see an increase in speed of service as customers simply swipe and go.
Keeping a detailed record of your transactions and profits vs. spend is an essential element for businesses to be successful. Not to mention any impending tax audits. Taking credit and debit cards streamline the bookkeeping process via PDQ terminal. This lets business owners lookup any transactions and breakdown revenue by day, month, and year quickly.
Is the Future of Business Cashless?
The statistics definitely highlight the increased preference toward using cards as a primary source of payment. But completely cashless businesses may not be possible quite yet. As innovative payment technology increases, the need for cash may decrease even more.
One thing is certain, if your business is yet to implement a credit and debit card payment method, it is time. You may be missing out on a lot of revenue by being cash only. Accepting cards will also prime your business for the future, which very well could be a cashless payment system.