As technology continues to advance the methods in which consumers shop will as well. The society we live in is becoming more instantaneous than ever. As a result when we purchase products we want it to be hassle-free.
That being said, when was the last time you used cash? It probably wasn’t too long ago, but in retrospect, your use of cash has become less frequent over the years. The reason why is because using cash not only is a hassle for customers, but also for businesses as well. As a result, retailers are now switching to a cashless purchasing system.
Integrating point-of-sale systems definitely has its advantages and disadvantages. In this article, we will give you a better understanding of why business owners prefer to either use cash or card. So the next time you are told that “this is a cash-only business” this article can help you understand the reasons why that business owner prefers cash or card transactions.
However, before we break down these advantages and disadvantages, here is a brief history of cashless businesses.
The History of Cashless Business
Credit cards were implemented in 1950, so for those that are younger than 70 years old, it’s likely that you don’t know a world without credit cards.
Ever since the implementation of credit cards, they have become a vital part of our society. Believe it or not, there are 123.5 billion non-cash transactions made every year and only one in four people carry cash on them. These are only some indicators that the use of cash is becoming more obsolete every day. As a result, businesses are taking note and are beginning to switch to a cashless business model that will alleviate some of their stressors. In the meantime, it will also incentivize customers to spend more as well.
At the end of the day, switching to a cashless system will make the purchasing process more convenient. So instead of digging through a bulky wallet, customers can purchase their goods with a simple swipe of a credit card, bump from an Apple watch, or push of a button when using mobile applications such as Venmo. Streamlining the purchasing process seems simplistic, however, businesses will experience benefits as well as some setbacks.
Should you Go Cashless?
Deciding whether or not you should go cashless will vary largely on your industry, customers purchasing habits, and various other factors. As a result, you will have to weigh all the benefits and setbacks of eliminating cash transactions to determine if it is right for your business.
Below you can find a more detailed list that Fundera created that consists of everything you should consider before you eliminate cash sales altogether.
Infographic by Fundera
