It’s hard to believe, but about a half century ago, most consumer transactions were completed with cash. Since the introduction of checks, credit cards, and debit cards, however, the majority of modern retail business transactions don’t involve the exchange of hard currency. And now that mobile payments have emerged as an alternative method of buying goods or services, some experts are saying that the world will become “a completely cashless society” in less than a decade.
But will that prediction come to pass? More importantly, should your business make an effort to go completely cashless today?
Advantages of Cashless Transactions
Going without cash is a no-brainer for most businesses. Productivity and efficiency would increase, as clerks wouldn’t waste time counting out change or verifying checks. Business owners wouldn’t have to worry about being stung by counterfeit bills or forged checks. And the risk of loss due to monetary theft would be virtually eliminated. In addition, most consumers find credit cards to be more convenient than cash, which you never seem to have on hand when you need it.
Drawbacks of Cashless Transactions
On the other hand, there are inherent disadvantages to going cashless. A certain subset of customers may resist credit cards — and if your clientele is very young they may not even have one. And for merchants, cash comes with no added fees in the form of credit card processing charges.
What About Your Business?
Do you have to go completely cashless? Not really. While mobile payments systems can offer several benefits to almost any business, smart customer service means giving buyers a choice of payment methods.
Mobile payments are most effective as a complement to your existing business — not necessarily as a replacement. Remember, if you have a GoPayment account, you can use it to track cash payments from customers, so you can keep records of hard currency transactions and even send an electronic receipt documenting a cash purchase to the customer.