At first, going cashless can be scary, but looking at how most markets are going digital, it can be the best solution with fewer setbacks. A cashless society is catching many people’s attention, and you wouldn’t want to be left behind, especially if you own a digital company. These digital transactions allow more flexibility in operating your business and give you the liberty to make sound judgments regarding the company you wish to use. This article considers 4 practical ways to become a cashless business, the advantages and disadvantages of going cashless, and critically defines a cashless business for your benefit.
What Is A Cashless Business?
A cashless business refers to any exchange of finances that does not involve actual physical currency. The transactions are mostly done through cards or accounts linked directly to the bank, e.g., Payoneer and digital accounts. These cashless payments include Barclaycard, debit cards, PayPal, and Venmo.
In this instance, cash payments aren’t accepted since paper check payments are minimized. This helps them attain their goal of being more secure, having fewer payments that require manual processing and physical visits, helping to streamline processes, innovate business procedures, and reduce fraud risks. Follow the following tips to help you attain this goal:
How to Become a Cashless Business
Becoming a cashless business is not all that simple, given that businesses and customers vary from one setup to another. However, these hacks should help you establish a reliable cashless business:
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Inform Your Customers and Close Partners about Going Cashless
It would be best to let your major contributors know that you will no longer be accepting cash. This is to prepare them before you lose some of your clients to a lack of communication. This could also tarnish your brand reputation. As far as it fits you, issue a month’s notice to get your clients and product suppliers ready for the new transaction method.
You can make this information known by putting posters in your business or even online in case you have an online store. You can also use your employees to help dispense the message.
Consider Your Customers’ Choices and Preferences for Payment
Ask yourself this personal question, “What mode of payment do my customers prefer to use? If I am to go cashless, what percentage of people will benefit, and how can I help those who don’t?”
As an entrepreneur, familiarize yourself with what your customers prefer more than the cash flow. When going cashless, assess the methods that would be best suited to your business and your customers.
The options of cashless methods of payment have increased with time. Currently, if your business deals with crypto enthusiasts, it is easy to receive crypto payments. Therefore, it is critical to consider your customers keenly and know which method works for them.
Organize a Reward Scheme for Those Who Use the Cashless Mode
Positive reinforcement is another way to win your customers over easily. As far as you are concerned, you can try to issue a discount to those who transact cashlessly or other reward schemes you might think of. You reinforce your customers’ transactions’ safety, usefulness, and security by providing rewards.
Formulate a More Secure Platform for Cashless Payment
Today’s world is filled with new technologies advancing daily, giving room for cybercrimes. Your business might fall victim to cybercrime when you fail to conduct proper research to help you choose the safer mode. Most cashless businesses have become targets for cybercriminals who use very subtle means as traps that could catch anyone.
Do due research to help you choose the legal one. Most likely, go for a famous brand that many people use, which will be convenient for your customers and prevent you from falling bait to cyber criminals.
Pros and Cons of Running a Cashless Business
The cashless business has benefited many digital market owners, basing most of its reports on how it has steered the growth of digital businesses. Despite all the praises, it is not all rosy. There are also downsides, though few. Consider the following pros and cons of a cashless business.
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- These transactions are undoubtedly secure since they reduce the risk of theft or loss. There are fewer chances of having your business robbed financially. It is also safe because your employees won’t see your business’s profits from the register.
- You may only spend less in terms of transfer of currencies, which reduces the expenditure which would’ve been incurred using physical currency. While other businesses pay for each credit card transaction, they also have to pay an employee for the additional time taken to accept the cash.
- There is business flexibility regarding accepting payments, e.g., using the electronic method of swiping a card, scanning a QR code, or even using mobile apps and websites.
- It saves time, unlike physical payments, which require you to count the cash at the end of the day and make frequent bank visits to make deposits and withdrawals.
- For companies that experience long lines during peak times, this method can greatly increase efficiency at checkout processes to curb the issue, allowing customers to make stopovers for purchases.
- It is the most accurate method of keeping records since it saves you the hurdle of noting down transactions made, which could be lost at any time. This improves efficiency in your accounting and bookkeeping.
- Costs might be incurred when implementing a cashless system. Other costs include getting credit cards with a fee of 3-4% on each purchase. One research found that business owners spend a significant fraction of money on credit transactions each year.
- You might likely lose customers when people feel alienated, resulting in negative publicity for your business. Some who prefer paying in cash would prefer other markets instead. Unless there’s a way out of this, consider this pitfall.
- When the system crashes, it cannot accept payments leading to delayed transactions. When this happens, you won’t be able to accept any form of payment.
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The Bottom Line
It is a very thoughtful idea to establish a cashless business. Still, like many other businesses, it requires proper preparation to help you acquaint yourself with this new trend of your business. The cashless business has nothing to do with physical transactions that happen one-on-one. This article has outlined very practical ways to help you through this process. You may want to consider these ways before choosing the cashless mode. The pros and cons will also help you understand what to expect when transitioning to a cashless business. Preparing for a cashless future will help you hit the ground for growth and promote a beneficial service for you and your customers as payment protocols evolve.
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