What is a cashless society and what does it mean for your small business?

With technology advancing at what seems like a record clip, conventional currency appears outdated. These days, almost any form of transaction or even administrative process can be performed online, so why do we still use cash? 

The financial sector is now answering that question. 

Like many individuals, it no longer sees the point of carrying cash and is keen on the idea of a cashless society. It wants to make transacting more secure and transparent for everyone. 

What is a cashless society? 

A cashless society is any country or economy that substitutes digital methods of conducting transactions for bills and coins. For example, a cashless society would remove all physical tender from circulation and instead use cards, cell phones, digital wallets, and online transfers.

The concept of a cashless society has been around for a while. But with accelerating progress in the financial industry toward this goal, it is time to prepare your business now. 

Companies that prepare early are the ones most likely to succeed. 

Why your business needs to prepare.

Preparing your business for a cashless world helps you get ahead of the competition. It lets you jump on this emerging trend and align your operations before others in your industry.

To prepare your business for a cashless future, examine how you take payments today. Check that you have the proper tools in place, like mobile credit card readers, to provide customers with more cashless options. 

Also, consider whether you need integrated solutions that connect to your accounting software. These streamline digital payments further, reducing cash counting and manual reconciliations. 

What a cashless society means for your small business.

The impact of a cashless society on your small business would be significant across the board, from the small to the large. 

Faster transactions.

One benefit would be faster transactions. With digital payments, you could speed up the checkout process and prevent lines at the register.

Naturally, all online payments happen in seconds. But these benefits would extend to brick-and-mortar operations. By allowing customers to pay with a single tap of their card or phone, you could whittle down lines and process shoppers faster, reducing the risk of cart abandonment or frustration. 

Enhanced record-keeping.

Enhanced record-keeping is another benefit of a cashless society. When your contactless card reader takes a payment, it sends that data to your accounting software, updating it automatically in real-time without any reconciliation process. 

You could also generate reports quickly. Most payment platform solutions offer reporting capabilities that are easy to use. 

Reduced physical cash reliance.

Moving to a cashless society would reduce your reliance on physical cash, something that is a liability today for many small businesses. Instead of keeping money at your brick-and-mortar store, you could eliminate that risk by sending and receiving it by secure digital means. 

This approach would slash the risk of theft and prevent employees from stealing. 

More payment options.

Taking digital money in a cashless society would let you connect to numerous payment and e-wallet providers, making life even more convenient for your customers. 

You could accept direct payments for goods sold in-store or online. You could also benefit from advances in software to set up subscriptions and other recurring payment features. 

Expanded customer base.

A cashless society could also increase the size of your customer base. You might find your brand attracting customers who prefer to use digital payments exclusively. 

These individuals often want convenience more than the lowest price, shifting them toward conversion. 

Market competitiveness.

Finally, the shift to a cashless society would potentially improve your company’s market competitiveness. 

You could shift away from payment methods customers don’t like and move toward those that they do and are simple and easy to use - like credit cards and mobile payments. These could help you build a reputation as being more of a customer-centric business.