Tips to Prepare Your Business for a Cashless Society

Tips to Prepare Your Business for a Cashless Society
With more and more businesses considering a cashless operating model due to COVID-19, here are some tips for making the move.
by Square Sep 08, 2020 — 4 min read
Tips to Prepare Your Business for a Cashless Society

With Australian consumers increasingly preferring to use electronic payment methods, many businesses are considering a cashless future. As a nation, we’ve been quick to embrace mobile and contactless payments – in fact, global market research firm Research and Markets predicts that Australia could become the Asia Pacific’s first cashless society by 2022.

In 2020, COVID-19 has transformed the way we transact. With concerns over health, safety and hygiene top of mind, many brick-and-mortar businesses have transitioned to an online operating model complete with contactless payment and delivery. Those who continue to operate a physical shopfront are seeking to minimise the use of cash for face-to-face transactions.

As the world navigates an uncertain path to a ‘new normal’, what is certain is that the way we buy and sell is unlikely to return to a pre-coronavirus approach. With more and more businesses considering a cashless operating model, here are some tips for making the move.

What is a cashless society?

A cashless society is one where financial transactions happen digitally rather than via the transfer of physical currency. In a cashless society, cash is replaced by a digital equivalent such as credit and debit cards, internet banking, mobile wallets, payment apps, cashless point of sale (POS) systems and other modes of digital payment.

How does Australia compare to the rest of the world when it comes to going cashless?

The Reserve Bank’s 2019 Consumer Payments Survey reported that Australians are continuing to switch from cash to electronic payment methods. The survey found that debit cards were the most common method of payment in 2019 (44% of all transactions), with just 27% of payments made with cash.

With the coronavirus pandemic propelling a dramatic shift away from cash, Australia is closer to being cashless than ever before. A new Square report – Cashless Payments and the Pandemic in Australia – found that 36% of businesses were effectively cashless during the height of COVID-19 stay-at-home orders mandated in April, up from 7% pre-pandemic.

What are the business benefits of going cashless?

Businesses who have transitioned to a mostly cashless operating model are finding:

What are some tips for transitioning to a cashless business?

If you’re looking to go cashless, there are a few things to keep in mind.

With electronic payments on a steep upward trajectory and COVID-19 continuing to drive concerns about cash payments, it makes sense for businesses to consider a cashless future. Going cashless presents some challenges to navigate, but the upside is complete transparency of your operations, allowing business owners to leverage rich, real-time reporting and make decisions with confidence.

If you’re ready to get started accepting cashless payments for your business, Square can have you up and running in minutes. We offer a range of tools for businesses to accept electronic payments quickly, easily and securely, including hardware solutions like Square Terminal and online solutions like Square Invoices. Find out more at our website.

Square AU Pty Ltd ABN 38 167 106 176, AFSL 513929. Square’s AFSL applies to some of Square AU’s products and services but not others. Please read and consider the relevant T & C’s, Financial Services Guide and PDS before using Square’s products and services to consider if they are right for you.

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