13 May 2019
The reality is that the UK is becoming cashless more quickly than most other countries in the world. As a small business, it is most definitely in your interests to keep up with the trend as more than half of all purchases are now made by card instead of cash. Surprisingly, millions of small businesses still do not accept any form of card payment. As a result, they are missing out on custom from people who simply don't carry cash anymore. 27% of shoppers admit that they have walked out of a shop without buying something because they only accept cash and 19% actively avoid businesses which only accept cash. They could also be missing out on the potential to upsell. If someone has a limited amount of cash in their pocket, they are unable to spend more even if they want to.
The majority of consumers prefer cards because they are a quicker and more hassle-free way of paying. British consumers rely on their payment cards and there is no going back so it is up to small businesses to move with the times, especially as 60% of consumers say that they would be more likely to buy from a local business that accepted cash free payments.
As a small local business, although it may seem daunting if you currently only accept cash, there are some big advantages to offering a cash free option or even going completely cashless. The speed of transactions increases, and you no longer need to cash up at the end of the day or deposit takings at the bank. Your potential for upselling increases and your admin gets easier.
As a local business with a relatively small turnover, you may fear the cost of fees that are associated with card transactions. Some businesses choose to build these fees into the cost of products or shop around for a system that is compatible with the size of the business and charges lower fees that won't make a dent in your takings. You should also bear in mind that offering a cash solution is likely to increase your custom and your customers average spend, improving profit overall.
The good news is that going cashless or offering a cash free alternative is now easier for small business thanks to the variety of cashless apps for small businesses. As a rule, these payment processing apps charge a flat fee for each transaction, making it easier for businesses to plan their outgoings. Many are also contract free, making it a more flexible option. Some you simply pay for the card reader and enjoy fee free transaction after that. Whatever your budget and needs there is now an option out there for you.