According to the Federal Reserve, the U.S. is projected to print between 4.5 billion and 8.6 billion notes in 2023. These figures demonstrate that there is still a massive demand for physical currency. However, while the U.S. Treasury is still printing billions of bills, consumers seem to be trending away from cash in favor of digital alternatives.
According to recent data, cash usage in the United States dropped from 31% of purchases in 2016 to just 20% in 2021. As an increasingly large percentage of consumers embrace digital payments and ditch cash, you may be wondering if it’s time for your business to go cashless.
Fortunately, you can learn how to go cashless by leveraging simple, low-cost credit card processing solutions and how to overcome the associated business challenges.
Costs: The Case for Cash
When comparing the benefits of cash vs. credit card processing options, many business owners immediately shift their focus to the perceived costs of each payment method. Processing cash is often viewed as a cost-free endeavor, whereas credit card companies require businesses to pay surcharges and other fees.
But is processing cash truly cost-free? Not by a long shot.
If your business accepts cash payments, you must invest time and resources into storing the currency, counting it, depositing it, and documenting cash intake. Depending on the size of your organization and the amount of cash you bring in, these tasks can eat up dozens of productive hours.
In contrast, credit card processing involves predictable, low-cost fees. Therefore, it is even more affordable when you partner with a low-cost credit card processing solutions provider like Simpay.
Simpay provides 360-degree total business solutions for small to medium-sized companies. If you are exploring the idea of going cashless, connect with Simpay and book a demo today.
The Benefits of Going Cashless
Accepting cash presents numerous business challenges. Cash is less secure, exposes you to the risk of employee theft, and can even lead to fewer sales or lower average ticket value. Most customers prefer credit, debit, and digital wallet payments. These options accounted for 81% of total point-of-sale transactions in 2021.
By embracing cashless solutions like technology that can accommodate digital wallet purchases, you can overcome these business challenges and better serve your customers.
Going cashless will enable your business to:
- Improve the buying experience
- Encourage consumers to buy more of what you sell
- Connect with a wider range of consumers
- Increase sales
- Boost profitability
- Streamline auditing and accounting processes
Transitioning to a cashless model will also help you capitalize on the digital wallet trend. According to Juniper Research, global digital wallet users will reach 5.2 billion by 2026.
Overall, going cashless will offer tremendous benefits to your business. But even if you choose to continue accepting cash, your business needs to provide a seamless purchasing experience by upgrading its credit card processing technology. Doing so will eliminate friction from the buyer’s journey, boost revenue, and help your business grow.