What would a cashless society mean for UK businesses?
With the rise of contactless payments more and more UK consumers are paying for items by card, what does this mean for UK businesses?
- In 2014 48% of payments made by British consumers and businesses were made in cash, down from 52% in 2013 (Payments Council)
- Following the introduction of contactless cards, consumers collectively saved over 90 years of waiting time at checkout (British Bankers Association)
- Consumers are likely to spend more money when spending on cards due to an emotional attachment to cash
- Counting notes and depositing cash at the bank costs Britain’s small businesses around two weeks and 2.5 billion pounds per year.
Looking at these facts it’s easy to spot the benefits of a cashless society for UK businesses; increased spending and less waiting for consumers, and less time and money wasted for businesses. But what would the impact of a cashless society be and will we ever get there?
Alongside the benefits outlined above, card payments also allow retailers to measure the effectiveness of promotions and monitor customer loyalty, with each card holding valuable information on the consumer. This information not only helps businesses but benefits the customer too, allowing them to receive targeted and personalised information about the businesses they regularly frequent.
With approximately 75% of British retailers yet to swap out their payment terminals for contactless devices it’s clear the change isn’t going to take place overnight. But as more and more businesses embrace contactless systems the greater the pressure on those who have yet to make the change.
It might be a large change for UK businesses, in terms of mindset of employees and implementing a new system but research suggests it is one that’s well worth it. And it’s not just businesses that accept these payments that have to think about implementing the change.
The UK’s Managed Service Providers (MSPs) have a huge task ahead of them, and one that will eat away at their resource, time and cash. By working with a technology company like ByBox to manage the swap out of devices, MSPs can save on each of these elements whilst also removing layers from their supply chain and ensuring UK businesses are equipped to manage the influx in cashless and contactless payments.
It is by working with companies who are well equipped and qualified to manage these technical swap outs that will ensure MSPs can provide their service, retailers are equipped to cope with the change in society and most importantly, consumers receive the service they have come to expect and demand.