Although cashless payments generate a lot of buzz and are becoming more widespread, cash handling technology makes paying with cash just as easy.
Whether or not you agree, cash is here for the long haul. So, if you accept cash for payment, your processes must be as smooth for your employees to handle as cashless; and equally as easy for customers to use.
The 2016 U.S. Health of Cash Study by Cardtronics cites that cash is still the most frequently used form of payment in brick-and-mortar stores at 89 percent. The same study further states that 72 percent of people use cash for purchases less than $10 and 54 percent use cash for purchases under $20.
I could name one report after another – from various countries – claiming cash is still king when it comes to payments.
It’s no secret that some businesses worldwide are dabbling in cashless-only payments. Which makes me wonder how consumers will react when the option to pay with cash at a particular store or restaurant is eliminated.
Earlier this month, a cashless-only, 40-seat restaurant opened in Tokyo. Posted on the door of Gathering Table Pantry is a “No Cash” sign. Patrons can only pay with credit cards or electronic money using a device on each table, which will also be used for customers to place orders. The chain restaurant’s parent company is testing the waters at this outlet because of a labor shortage – and will only have three employees working there at once. And depending on the outcome, it could go cashless in locations elsewhere.
Proponents of cashless claim, among other things, that cashless payment options, such as online banking, credit cards and digital wallets, are convenient, fast, and much more efficient than cash. But not every merchant accepts credit cards. And even fewer accept digital wallet payment.
This article from The Guardian says, “Digital wallets have the chicken-and-egg problem: they’re useless to customers without shops which take them, and no shop will accept payment in them if their customers don’t use them.”
In contrast, most brick-and-mortar businesses still accept cash as a form of payment. And if your business is one of them, your cash-management processes need to be efficient, accurate and seamless – just like cashless options. Are you automating your cash management processes so they are as smooth as they can be – for your employees and customers alike?
Before digging deeper into cash handling solutions, here’s a brief run-down of some of the top cashless contenders vying to knock cash of its throne.
Digital wallet ‒ a virtual repository for credit card numbers, receipts, coupons and passwords for various payment methods and websites. It resides on the user’s cellphone or personal computer. The most-popular ones include PayPal, MasterCard’s Master Pass and Visa Checkout. A digital wallet eliminates the need to carry cash, credit cards, checks and an actual wallet. But it’s tough to use if you misplace your smartphone or if your battery runs out when you need to pay.
Mobile wallet ‒ payment apps are housed on mobile devices, such as wearables and smartphones. Better-known ones include Apple Pay, Android Pay and Samsung Pay. Like its digital wallet cousin, a mobile wallet eliminates the need to carry cash, credit cards, checks. Unless you lose or break your mobile device.
Mature cashless payment methods ‒ No explanation needed for these tried-and-true cashless payment methods…
So, back to how cash processing solutions help make your job – and that of your employees – much easier. When customers pay in cash, cash management technology decreases or eliminates the need for manually handling cash. And it’s so incredibly easy for your employees to use. When they are able to efficiently and accurately perform cash handling processes, such as counting or skimming drawers, they are just as smooth and easy to use as their cashless counterparts.
Take an intelligent cash drawer, for instance. Place a bill or coin in the drawer, and it’s recorded automatically. When cash is removed, that is counted and recorded in live time as well.
This allows customers to move through your lines more efficiently and cashier mistakes are all but eliminated – particularly when an intelligent cash drawer is combined with a smart safe, which detects and rejects counterfeit bills, among other things. This dynamic duo makes handling cash easy for your employees and paying with cash easy for customers.
So, when I read that cash is dead, cash is clunky, a cashless society is imminent, I beg to differ. Because consumers love choices when it comes to paying. And with cash management technology, using and processing cash can be just as efficient as cashless methods, too.
To find out how various cash management solutions can benefit your business, download the Cash Handling Procedures Ebook.