Wednesday, July 17, 2024
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Cashless Payments Are Set to Reach £4.75tn – How Can Businesses Get a Slice of the Action?

Mobile and digital payments have been growing in popularity for years, but 2021 is when they are expected to reach record highs. According to Statista, the figure is set to hit £4.75 trillion, making cashless transactions one of the biggest industries in the world.

For businesses, it’s essential to get a slice of the action to prevent falling behind in the market. However, offering a credit or debit card option doesn’t guarantee success. To get customers to pay remotely, you must show you are moving with the times.

Make Mobile Your Number 1 Method

The fact that trillions are spent digitally highlights the importance of moving from cash to cashless transactions. This is especially true in the UK and Europe where the numbers regarding card payments are staggering. For instance, Finextra reports that the total number of non-cash transactions in the EU increased by 8.1% in 2019. Card transactions accounted for almost 50% of these payments.

The United Kingdom, in particular, is leading the way, along with a selection of Scandinavian nations. Several industries have benefitted as a result, such as streaming services like Spotify and Netflix as an internet connection means their services are available 24-hours-a-day. Online casinos are taking advantage, too, because they are providing more choices for players. The platform Fruit Kings is a prime example as it recognises PayPal, Skrill and Paysafe, along with Visa and MasterCard. There are also pages dedicating to supporting players too.

While it appears sensible, Merchant Maverick points out that 83% of SMEs would never go entirely cashless. But as the examples above show, the sectors putting mobile payments at the forefront of their strategies are reaping the rewards.

Be Efficient

Not accepting cash has its benefits, the main one being that there should be fewer queues and shorter waiting times for customers. Therefore, shoppers won’t welcome a platform or in-store experience that doesn’t reduce the hassle associated with using physical money.

Efficiency is the king regarding cashless payments as eMarketer reports that 48% of consumers think the technology will make shopping easier. The answer you need to find is how to make the shopping experience more efficient. For high street shops, the answer is the scan-and-go software you find in supermarkets. Not only can you sell on-the-move, but you can almost guarantee no lines when they proceed to the checkout.

They are so effective that Amazon, the market leader in eCommerce, has launched Amazon Go, which is a completely cashier-less shop.

Find Suitable Replacements

Do you believe that anyone has access to a credit or debit card? Although Finder says that UK residents are more likely to have the latter as opposed to the former, there’s a chance that some of your loyal customers will miss out if they prefer cash.

You can’t suddenly start offering credit cards because you’re not a licenced lender. What you can do is use gift cards as substitutes. By uploading money onto a gift card, the people in question can happily pay for goods and services without doing anything they find uncomfortable. And, because they can do it at home with help from tech-savvy family and friends, it should be an accessible option to them.

With cashless payments hitting such a big sum, it would be wrong not to jump on the bandwagon. By providing numerous transaction methods, making them efficient and offering replacements for cash, you should see an increase in your company’s bottom line.

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