In this article we look at why we are moving towards a cashless society and how this could benefit UK retailers and hospitality businesses.
With physical cash currently accounting for around 30% of transactions in the UK, this number is predicted to continually decrease within the next 15 years to as low as 10%.
As technological advancements keep coming at a rapid pace, consumers are constantly looking for easier and quicker ways to complete daily tasks, including making payments. Therefore, the appeal of simply tapping your card or smartphone to pay for everyday items has become a preferred choice for consumers as opposed to carrying cash.
As online shopping rises in popularity, so will the use of online payments. Therefore, this gives businesses the opportunity to focus on how to make online payment for their customers as easy as possible; while also exploring how online payments can be collected and analysed in an efficient manner for their business.
Businesses can benefit from electronic payments
There are already various reasons why the changes could be beneficial for businesses.
One such example, is that by not holding cash it provides less risk of fraud or robbery, and ultimately creates a safer working environment.
Additionally, the move to digital payment brings new opportunities to improve the customer experience and analyse business performance. For example, Electronic Point of Sale (EPoS) systems are hugely beneficial tools for businesses in the hospitality and retail sectors. EPoS systems provide a number of benefits to your business including improved management reporting, quicker payments and the potential to retain loyal customers.
Connecting your EPoS system to cloud accounting systems such as Xero or QuickBooks allows your business to manage finances easily and saves you time counting cash and reconciling the books as it is all done in real-time. If you would like to know more about EPoS systems and cloud accounting and how we can help, read our article – Connecting an EPoS to your accounting system: It pays to be connected.
Another benefit to hospitality businesses in particular is that those paying by card at places such as restaurants are likely to spend 25-40% more than if they were paying by cash, according to a recent study conducted by Visa. Meaning your business is likely to be generating more income in a cashless society.
How will a cashless society impact your business?
In summary, as society moves towards a more technologically reliant future, it is important for businesses to consider how they can adapt. Assessing how your business can use this change in consumer behaviour to your advantage is important in developing your business’ future.
If you are considering choosing, or integrating an EPoS system or cloud accounting software for your business, please contact our team to discuss our experience in this area and how we can assist.