Less Cash but More Cash Flow: How Consumer Buying Behaviours have Affected Businesses
The way that we make payments in the UK has changed drastically over the past few years, with cashless payments becoming more and more prevalent. With a country that doesn’t rely on cash as much as it used to, businesses are having to make changes to their payment options in line with these new buying behaviours.
How has Consumer Buying Behaviour Changed?
In 2015, cashless payments overtook cash for the first time in history as the most popular way to pay for goods and services. It’s also been estimated that cash will make up only 25% of payments by 2025, a huge change from what we saw even just a decade ago.
This has been largely driven by the rise of the internet and the large number of options that consumers now have when it comes to paying for their goods. These include:
- Credit and debit cards, with contactless or Chip and PIN payment options
- Online banking with traditional and new banks
- PayPal and Bitcoin
- Mobile-based payment such as Apply Pay and Android Pay
Previous low transaction limits for contactless and card payments have also become less frequent, with people now happy to pay for something as cheap as a chocolate bar on their card, rather than having to carry cash around with them.
What Effect has this had on Businesses?
The changes above have had a largely positive effect on businesses.
- Saving time and money
A reduction in cash management and admin means that businesses spend a lot more time and money on this aspect of their business. - Reducing risk of crime
Digital transactions are much easier to keep track of as they’re all recorded, meaning it’s much harder for criminals to carry out money laundering or other illicit transactions. Tax avoidance is also much harder due to the online paper trail from digital payments. - Easier transactions internationally
If you’re a business that transacts with those abroad, card and online payments have made this process far easier – and cheaper – than they were in the past. - Increased efficiency
Cashless payments are far more efficient for businesses, as the technology allows for tracking and monitoring and requires less admin time from staff members. - Easier to monitor cash flow
All transactions go directly into your business bank account, allowing you to have visibility over your cash flow at all times.
In 2021, it was reported that 86% of businesses prefer card and contactless payments to cash, with another 52% wanting to scrap cash as a payment option entirely.
Make the Move to Cashless
At FFP, we’re dedicated to helping businesses make the move to cashless quickly and easily, allowing you to grow and thrive with reliable, secure payment and financial services solutions.
We offer a range of solutions including card terminals, virtual terminals and online payments and can offer tailored products to suit your business needs.
To find out more or for a free quote, please get in touch with us today.
