“To go cashless or to keep cash as a payment option” is a question many businesses are asking today. In some countries such as Sweden, plastic cards and mobile payments have practically already taken over everything. There are even certain hotels and businesses in the US that are already doing away with cash payment options. There have been benefits to this, but also some challenges that make it difficult for every business to consider going cashless at the moment.
The Main Reasons Businesses Go Cashless
The primary reason for having cashless transactions that are usually conducted via mobile payments is to save time. Instead of waiting in line when visiting a fast-food restaurant or supermarket, customers can order ahead of time and grab and go when they arrive. But even more so than having to enter cash amounts and have enough change in the register for customers, businesses are less likely to commit accounting errors or have tax issues when trying to reconcile balance sheets. Even with computer and cloud-based point-of-sale systems, handling cash can still come with human error.
Some businesses have even chosen to go cashless to prevent or minimize the risk of theft. If in-store robberies have been a problem, or if the threat of robbery is high when going to the bank to deposit cash, going cashless may not be a bad idea. Although keeping your POS system secure from cyber-attacks could be a new priority if you go cashless.
Reasons Not To Go Cashless Yet
One of the problems with going cashless is that many people still rely on cash and paper checks for their personal finances. Senior citizens, lower-income families, homeless individuals, or others who choose not to have bank accounts may have problems paying for even basic services. Because of this problem, some local US jurisdictions have made laws requiring businesses to allow cash as a payment option. But even more so, some banks have even started charging businesses or their customer’s fees for certain cashless transactions. So while cashless payment systems can save some money, there are drawbacks that may make you want to reconsider.
The bottom line is before you go cashless, you may want to do some market research on the strategy. Would your customers benefit from the move, or would you risk alienating some of your most loyal ones? What do your local laws say about such a move? Ultimately, there may come a day where nearly everyone, regardless of their status in society, will be able to use a digital wallet. But until then, you may want to keep cash as a way to pay.