Some countries in the world are close to being completely cash-free. In Europe, Sweden is the first country to operate in an almost cashless environment. Sweden is leading the pack when it comes to countries that are less reliant on cash transactions.
So does this mean that every country in the world will be cash-free in the future? How will the world be affected by digital payment systems?
What Are the Different Kinds of Cashless Payments?
Store Specific Payments
Various stores in the US have developed apps so that their customers can make use of their smartphones to make payments. This makes it convenient for clients to purchase in-store, even if they don’t have cash with them.
Some stores offer additional incentives to make use of these apps. They create loyalty programs that allow customers to earn points every time they shop in-store or online. Customers can use the saved points to make additional purchases.
By doing this, intelligent brands like Starbucks can retain customers as well as increase their revenue significantly.
Other brands like McDonald’s allow customers to use their payment platforms to order online, saving the hungry client time and an extra phone call to order in.
Customers can top up their accounts at any time so that they’ll always have funds to use the app whenever they need to. Alternatively, some payment platforms allow the user to add their credit card details for immediate payment.
Mobile Device Payments
Apple Pay / Google Pay
Big companies like Apple and Google have developed smart payment systems to enhance their customer experience. These payments are processed smoothly because they are linked directly with banks and credit card companies. There are already a vast number of vendors who accept these methods of payment worldwide.
Some specialized companies believe that by providing financial and business technology solutions, it will completely transform your business. http://shinepay.co/ recommend, for example, accepting electronic payments for laundry instead of carrying around coins.
What Are the Benefits for a Small Business?
There are many benefits for business owners and customers alike. For you, as a business owner, your payments will be processed faster. This means you can offer a more efficient service, and hopefully serve more clients throughout the day.
Also, when there’s less cash, there’s less opportunity for staff members to put their hands into the cash register and help themselves.
When you let your customers know that you’re moving to a more cash-free trading environment, most clients will be impressed and acknowledge that as a business, you’re staying on top of innovation.
Is Cash Still King?
Some might argue this point. It’s still a sensitive statement, with some countries around the world skeptical about the effect it might have on their economy.
Cash remains the most widely used instrument when it comes to making payments. If companies and Governments can pinpoint the correct strategies and implement the right regulation, noncash systems will rise, and confidence in these systems will increase.
Change takes time. People in general, though, are not always open to change. Some take more time than others to accept structural upgrades or amendments. Companies should try to remain flexible and ensure that they meet the needs of their entire customer base.
After all, without your customers, businesses won’t survive.