Is there really a cost when it comes to being a “cash-only” business? Are contactless payments the way forward? If so, what are the benefits for businesses when it comes to reducing the amount of cash they handle? According to a recent survey, if Irish businesses were to increase the number of electronic payments they process, it would save between €5,000 and €6,000 a year in cash handling costs. The survey also revealed that business owners spend on average 94 minutes a day counting cash compared to 28 minutes a day counting card transactions.
What countries are leading the way when it comes to cashless transactions? India has withdrawn 86% of its paper money from circulation, in a bid to stop tax evasion and corruption. In Iceland, the cashless capital of the world, buses don’t accept cash and most coffee shops expect you to tap your card when paying for your latte. If we are to follow the trends of the Nordic countries like Iceland and Sweden, what lies in store?
- With an increase in digital money solutions and contactless payments, cash use is continuing to diminish, particularly among young millennials and Generation Z.
- Irish charities such as Focus Ireland and The Simon Community can now take contactless donations – people no longer have the excuse of not having loose change to dodge bucket collectors.
- For transactions under €30, it’s never been easier to ‘tap’ your card — holding it against the screen of the terminal means you don’t even need to put your PIN number in.
- The big societal advantage of cashless is that It’s difficult to sustain a black market or avoid tax if every transaction leaves a trail, which is the case with all electronic transactions.
- Using a cashless system means there are fewer robberies, so if this is a recurring issue with your business, this may be something worth thinking about as a business owner.
- No more queuing at the A.T.M. to withdraw money.
- Efficiency is improved because you spend less time physically counting money.
- Full traceability for tax and fraud purposes.
- No more carrying around bulky wallets.
- Not using cash means society becomes dependent on technology.
- If there are issues with internet connectivity, it may be impossible to complete transactions.
- The elderly and people without smartphones may become more isolated as adapting is a challenge.
- Risk of hacking and cybercrime.
- Higher risk of identity theft.
- Losing your phone may mean losing all your money.
- You will also need to keep your phone charged at all times if you use it for payments.
- High chance of overspending as it’s easier to spend compared to cash.
So there you have it, the pros and cons of using cash versus cards. Over the coming years, it will be interesting to see the new developments in the payments industry. If you’re in the market for an ePOS system or credit card terminal with rock-bottom rates, talk to us on 1890 200 925 today.
*Figures taken from research conducted by Visa in 2017