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For any small business, offering a convenient mode of payment to customers is of utmost importance.The trend of cashless transactions is catching on as more people are drawn to the convenience of not having to carry cash around. The idea that cash as a mode of payment has become obsolete is not absolutely right but the constant innovation in fintech is changing the way we handle money at a very fast pace. The number of card payments in the UK has increased from 46% of total transactions made in the year 2005 to about 61% in 2015. Businesses have been reluctant about opting into card payments in the past and still, the conundrum of whether or not to adopt cashless transactions haunts small businesses.
One of the biggest benefits of cashless transactions is that businesses would no longer not have to worry about stocking adequate change to return to the customer, which is an unavoidable requirement for almost every cash transaction.Offering cashless payment option in addition to the conventional cash payment adds credibility to your business and can potentially attract more profits.
If you are an online business, you can accept payments from all over the world and offer your products or services globally. If your business accepts a monthly or weekly subscription based payment, setting up recurring billing can facilitate the periodic subscription amount to be automatically be charged to the consumer. Some of the most innovative payment solutions like PayStand, Take-a-Payment, Merchant Warehouse, Flint, and Payline Data can be used for both online and walk-in customers.
Before you decide to opt-in, here are a few important considerations. First off, determine if it would be feasible for your business to accept cashless payment considering the set-up fee and transaction fee involved. Secondly, you should analyse the impact this can have on your bookkeeping. Another important thing to consider is the protection against fraudulent transactions offered by your bank or payment solution provider.Payment process itself might pose several challenges for the staff and appropriate measures need to be taken to have them trained for the same. Also, keep in mind the preferences of your customers and if the change is actually needed or not.
Check out this animated infographic from Total Processing that provides an overview of all you need to know about cashless transactions. While adopting cashless ecosystem might be beneficial but you should beware of the complexities and your industry specific obstacles that it might attract.