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Home / Accounting  / Going Cashless: What it means for your businesses

Going Cashless: What it means for your businesses

Cash usage across the globe is decreasing as digital payments are becoming a more popular choice for both consumers and businesses. Let’s take a look at why the world is moving towards a cashless society and how this could benefit your business. 

Physical cash currently accounts for roughly 30% of all transactions in the region and this number is predicted to decrease over the next 15 years to as low as 10%. As technology continues to advance at a rapid pace, consumers are constantly looking for easier, quicker ways to complete common tasks — including making payments. That’s why simply tapping your card or smartphone to pay for everyday items, instead of paying cash, has become a preferred choice for consumers. 

This shift in consumer mindset gives businesses the opportunity to focus on how to make digital and online payments for their consumers as easy as possible; while also exploring how online payments can be collected and analysed in an efficient manner for their business.

How to benefit from electronic payments

There are already various reasons why a shift to electronic payments could be beneficial for businesses. For example: by not holding cash, it lowers the risk of fraud or robbery and ultimately creates a safer working environment for your employees. Additionally, by moving to digital payments, you are provided with new opportunities to improve the customer experience and analyse business performance. 

Electronic Point of Sale (EPoS) systems are incredibly beneficial tools for your hospitality business. These systems provide a number of benefits to your business such as improved management reporting, quicker payments and increased customer loyalty. Also, by connecting your EPoS system to a cloud accounting system, this allows your business to manage finances easily and saves you time counting cash and reconciling books as it is all done in real-time. 

Additionally, according to a recent study by Visa, those customers who pay by card at places such as restaurants are likely to spend 25-40% more than if they were paying by cash. Meaning your business is likely to be generating more income in a cashless society.

How will a cashless society impact your business?

As society moves towards a more technologically reliant future, it’s important to explore ways for your business to adapt to these changes. Take the time to assess how your business can use these changes in consumer behaviour to develop and improve your business’ future. 

*Please note that this blog is for reference purposes and not issued as tax advice.

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