James, August 4, 2017
There are many businesses who believe that by being ‘cash only’, they’re saving themselves money. But in reality, their stance against credit and debit cards could be hurting their business. By not embracing the rise of mobile payments and card payment apps, they’re losing out on a lot of potential revenue.
These businesses may argue that the cost of a card payment machine and the transaction fees on top of that make it unattractive for small to medium enterprises, but there are factors they may not be taking into account.
Cash may seem like it’s a cost-free system, but there are elements you need to factor in, like taking your cash to the bank. This costs you time, time which could be spent finding new business. It costs you time to count your money, too. It can be easily removed from your premise, and can go missing.
According to some experts, the ‘costs’ of cash can be as pricey as the most expensive card payment services.
There was a time when card payment machines were expensive, but the rise of technology has seen these costs dwindle significantly. Smartphones, and the wealth of capabilities that they have, means they can act as a mobile payment device. This reduces the amount of equipment you need to take card payments, and therefore reduces your costs.
Credit and debit card payments are the consumers’ payment method of choice. Cash still has its place but is declining in fashion. A consumer may or may not have cash on them, but they will almost always have their card with them. Their card allows them to access their money at all times.
It’s therefore imperative that businesses allow consumers to spend that money on goods and services. If not, those SME’s will lose out on business.