CynergyData Texas has been a merchant service provider for over 20 years and in that time, we’ve seen incredible technological progress in the industry. With payment options such as credit cards, debit cards, and contactless payments now widely available — cash has taken a backseat. So much so that some businesses have decided to stop accepting paper money! We explore the benefits and whether your business should consider going cashless.
Assess Your Industry
The first thing to assess is how the majority of shoppers in your industry choose to pay for goods or services. According to CardFellow, consumers are least likely to use cash at a department store, supermarket or gas station whereas cash is most likely to be used at a fast-food restaurant or a coffee shop. However — no matter the business, the majority of payments are by a debit or credit card!
The Benefits of Going Cashless
Sweetgreen, a fast-casual restaurant in Manhattan was among the first establishments to go entirely cashless. Their reasoning? It’s faster. These days, the checkout process when swiping or dipping a credit or debit card takes mere seconds, and then you’re on your way. In a cashless world, the sales associate doesn’t need to count change and you don’t need to worry about stuffing it back into your wallet.
Aside from a quicker experience for the customer, businesses find it to be easier to track revenue this way. They rely entirely on their POS system to track revenue and no longer spend time sorting or counting the cash drawer — which means more time to train employees or be out on the floor.
And last but not least on the list of benefits, “Visa will be awarding up to $500,000 to 50 eligible US-based small business food service owners who commit to joining the 100% cashless quest.” This may be the cherry on top for the businesses that we’re already considering making the switch.
The Risks of Going Cashless
With such an innovative idea, there are bound to be pitfalls. In this case, some are wondering if going cashless alienates those who are not financially stable enough to have bank accounts. On the other hand, there is also a percentage of the population that associates credit cards with debt and make a point to pay for goods and services in cash. Although this is a small percentage, it’s something to consider before outlawing cash.
To add to the argument — some customers have access to credit and debit cards, but simply prefer having the option to pay as they choose. Employees of cashless businesses have had to deal with their fair share of complaints during this transition, as customers never expected to hear that their cash would not be accepted.
At CynergyData Texas, we consider ourselves to be your financial partner and will recommend the payment solutions that will best serve your business. To us, it’s important that consumers are able to pay quickly and securely — whether it’s with a credit card, Apple Pay, or cash. Give us a call at 512-250-2380 to discuss your options.