Cash Payments Are Holding Your Business Back
Are you missing out on customers because you still think “cash is King?”
Today’s business owners need to keep up with many changes. According to research by Colmar Brunton, the trend towards cashless payment has escalated, with 86 per cent of businesses agreeing that customers expect to pay via electronic means?
The research shows that cash is only the preferred payment method for transactions under $5, and for anything over $50, the vast majority of people want the ease and security of an electronic payment.
Payment options are constantly evolving and consumers are shifting towards an increasingly cashless society.
If you don’t already offer an electronic payment system, it may be worth checking whether you’d benefit from one.
Three out of four businesses think that accepting electronic payments can:
- Save costs
- Increase efficiency
- Improve record keeping.
Research has found that consumers view electronic payments as more convenient, affordable and secure compared to cash payments. Nearly half of those surveyed feel inconvenienced when there isn’t an electronic payment option.
Consumers are also twice as likely to associate ‘cash-only’ as negative. This may impact your reputation, and drive customers to your competitors who offer electronic options. Offering electronic payments will make it easier for your customers by giving them an extra option to pay.
The costs associated with accepting electronic payment has reduced dramatically too, with some card readers now costing under $100.
The government has also started looking into plans to introduce an economy-wide cash payment limit of $10,000 as part of a wider effort to eliminate the black economy and people dodging tax.
Take the time to think about your business needs, as well as the needs of your consumers, and consider whether offering electronic payments is the next step for you.
As always, Paris Financial is here to assist you in any way possible. If you think you need further information on anything in this article, please contact us.
Ken Burk, Partner, Paris Financial