How to Increase Your Profit by Going Cashless
Our society has been moving closer and closer to being completely cashless over the past few years, especially since the COVID-19 pandemic encouraged everyone to ditch their cash and start using contactless and online payments for their transactions.
While this is something that many feared would open us up to an increase in fraudulent activity and theft, card and online payments are now one of the safest ways to pay.
There is evidence to suggest that businesses that offer card-only payment options can actually increase their profitability and provide a simpler, more manageable internal payment function.
With this in mind, is it worth it for business owners to ditch the cash option altogether?
How do cashless payments increase profitability?
- Save your business time
One of the best things about going cashless is the time you can save, both for your customers and your staff. Modern card payment technology can complete a transaction in seconds, with no time wasted on counting out change, meaning queues move quicker and your customers get a much better overall service.
- Increase customer spending
Strange as it may seem, there is a difference in perception when people choose to pay by card, meaning they’re likely to spend more than if they were using cash.
- Staff accountability
Due to the automated nature of card payments and the fact each transaction is digitally recorded, there are far less revenue leaks and discrepancies than when using cash. This puts an increased amount of accountability with your staff and leads to less incidents of customers being over or under charged.
- Data insights
As each transaction is automatically recorded, it’s much easier for you to reconcile your sales and get better insights into what you’re selling. This can be used to predict seasonality and trends and help you purchase more appropriately for upcoming stock.
- Minimise the risk of theft
Theft remains a huge issue in many sectors, with the retail sector alone reporting a loss of £2.2 billion in 2020. When you don’t keep cash onsite, this decreases the risk of theft within your store, particularly if you display card-only signage.
- Easier to manage third-party vendors
If there are any third-party vendors involved in your business sales, cashless payment devices can be used to charge them a percentage fee and get insight into their sales volume, allowing you to further understand which vendors are selling well.
Although card payments were seen as a risky option in the past, we’re now seeing an increased amount of people of all ages choosing this as their preferred payment option, with ATM withdrawals down 60% in 2020.
While there are some downsides to being card only, such as a lack of choice for your customers, there is no denying that this is the future when it comes to transactions.
How to Get Started
If you’re not currently offering card payments to your customers, what are you waiting for? At FFP, we offer simple solutions with no setup fees that can be personalised to suit your business.
For more information, get in touch with us today.