The old saying goes “Cash is king,” but is it? In 2018 more and more customer facing businesses are saying no to cash and only accepting electronic payments! Are they crazy or are they jumping head first into the future? According to a CNBC article from November 2017 physical currency is losing its appeal. A U.S. Bank survey found that only, “50% of respondents (Americans) said they carry cash with them less than half the time they are out.” With the convenience of credit cards, e-commerce, and payment apps like Venmo people just don’t feel the need to carry cash anymore and businesses are taking notice. Is going cashless right for your business? Keep reading to learn about the pros and cons of saying goodbye to cash!
Cashless Pros:
A faster experience for customers and businesses!
Many businesses believe that the time it takes to count cash/change on both sides of the counter (customer and cashier) adds up and that eliminating this process can save everyone time and provide a speedier and more pleasant experience.
Saving time and money all around!
When businesses accept cash, they have to have employees take time to count that cash and either hire employees to make frequent trips to the bank or engage cash transportation companies. Whether you have employees handle the cash or hire a third party, these things cost both time and money. Many business owners say that by going cashless they can actually pass on this savings to customers, making everyone happy.
It’s safer!
Many have argued that the move to electronic payments and away from cash will actually encourage less robberies of brick and mortar businesses. If there is no cash in the till, it makes robbing the store a lot less appealing. For thieves, moving stolen product is a lot more work than just going for the cash.
Cashless Cons:
It might be discrimination
While many in the business community tout the pros of going cashless, there has been some backlash and it is not entirely unfounded. Some lawmakers and civil rights groups feel that going cashless disenfranchises the poor, elderly, and immigrant groups and they may not be wrong. According to an article on Business Insider , as of 2015 7% of Americans, or 22 million people, were “unbanked” or didn’t have bank accounts. For many poorer members of society and some immigrant groups, having a bank account is a luxury they cannot afford as banking comes with fees and other issues they find unsustainable. Moreover, the elderly overwhelmingly favors using cash as opposed to electronic payments due to a technology divide between generations.
You might be alienating some of your customers
As stated above, in the United Sates alone there are 22 million Americans which are unbanked, by eliminating cash payments you are effectively turning away this customer base.
It may be illegal
Depending on what country or state your business is in there may be laws governing whether or not you are required to accept cash, in this case the choice of going cashless or not has been made for you.
Whether or not going cashless is right for your business, the future is coming and various electronic payments are here to stay. Let BeeKash help you navigate the ever changing payment landscape.