Running a small business comes with many benefits – from flexible schedules, choosing locations, independence in the decision-making process, and being able to express your creativity to the fullest. However, it also requires a lot of time, effort, and responsibility to ensure that your business thrives.
Apart from creating a well-thought-out business plan and choosing between VoIP vs. PBX for better business communication, you will also have to develop marketing strategies, establish customer relationships, and build an online presence. Another crucial step on that list is deciding if you want to introduce cashless transactions into your business model.
Even in 2021, when the popularity of online shopping is skyrocketing, some small business owners still stick to cash, mainly because of the fees cashless transactions usually entail. However, the number of positive changes these transactions can bring into your business and the potential growth makes it worth paying that fee. Here are some of the most valuable benefits you need to consider before making an informed decision:
Better Customer Experience
Today, delivering an outstanding customer experience and ensuring the satisfaction of clients is a top priority for any business, regardless of the industry. It is especially important for small businesses, considering the highly competitive markets they operate in. Implementing cashless transactions is one of the most beneficial solutions small companies can implement to improve customer satisfaction.
First of all, providing your customers with different payment methods allows you to make it easier and more convenient for them to order anything from your brand. In addition, it is possible to accept online and phone payments outside regular business hours, as well as enable recurring payments – of which the latter is incredibly useful for subscription-based businesses. This, in turn, may result in expanding your target audience and tapping into new sections of the market, leading to increased sales.
Secondly, card payments are much faster than paying with cash, which is very helpful during peak hours. Increased checkout efficiency means reduced checkout lines, which can prevent your business from losing impatient clients while also improving your overall customer service.
Moreover, accepting card payments will make your small business appear more professional, build credibility, and make prospective customers more confident when buying from you.
Another advantage of introducing cashless transactions is the complete transparency they provide to both businesses and their customers. It becomes easy to prove not only the fact of the purchase but also, for example, the payment dates, according to bank documents.
Moreover, this type of information will allow you to determine peak transaction times and your customer’s spending habits, as well as track trends in purchases and products. You can develop more efficient marketing strategies and create personalized offers for your regular customers with this knowledge.
This one is quite obvious, but it does not make it any less valuable. Implementing electronic payments into your business model will allow you to gain a significant advantage over competitors that stick to cash. Equally important, this will enable you to establish your business status in the market and level up your chances within the competition.
With the increased popularity of online shopping today, it is almost impossible to imagine a successful business that is not represented online and cannot offer several payment options. On the contrary, more and more card-only businesses are popping up, especially when it comes to retail stores. Depending on the niche, electronic payments may turn out to be the only way to stay afloat.
Working with cash is always a risk. The number of fake currencies is constantly growing, and to identify them and prevent losses, you will need technical means as well as the time to check each bill. In addition, cash turnover inevitably entails dealing with physical banknotes in-house and moving them around, which increases the risk of on-premises thefts.
Forgeries, deception, burglaries – all these are quite likely to happen when carrying out commercial activities. Cashless transactions take cash out of the scope of operational activities, reducing risks associated with its turnover.
Besides, the number of banks offering terminal installation and maintenance services to small businesses is constantly growing. Requirements and offers will vary, each with their own advantages and drawbacks, so it is necessary to decide which one will be more profitable and convenient to cooperate with while keeping your specific business needs in mind.
In addition, the risk of theft by staff, which also significantly increases the number of expenses, is excluded with cashless transactions. This is an especially valuable solution for small businesses like coffee shops, hairdressers, and other local shops. Cashless transactions go directly to the company’s account, eliminating the need to deposit large amounts at the bank, keeping your earnings safe.
Reduced Operating Costs
While cashless transactions always come with fees, which vary from one bank or online payment service to another, they can still help small businesses reduce operating costs. Electronic payments allow you to save money – and time – on cash management. For example, they eliminate the need to count cash at the end of the day or go to the bank frequently.
These tasks might seem minor, but they are time-consuming and even overwhelming in practice. You will need to either take care of them yourself or pay an employee for the additional time it takes to deal with cash. In such a case, introducing cashless transactions is a win-win solution.
The Bottom Line of Cashless Transactions
More and more people opt to pay for things, even those of a small transactional value such as a bus ticket or a cup of coffee, by using their debit or credit cards – especially after the global pandemic. With such an increased customer demand, refraining from introducing cashless transactions into your small business will be more likely to harm and suppress its growth than bring any positive effects.
Besides for saving your current customers and gaining new ones, electronic payments will ensure that your small business remains a worthy competitor on the market. At the same time, they will allow you to reduce operating expenses and completely exclude the risks associated with on-site cash flow.