For decades, small business owners have been told that “cash is king”, but that landscape is starting to change. Modern consumers are increasingly turning to cashless payments when buying everything from a cup of tea to expensive electronics. In fact, in 2019 alone, card payments accounted for almost 70 percent of payment transactions in Ireland. That means, now more than ever, your business has to be prepared to handle cashless transactions) in order to stay up to date with what your customers want and not miss out on what could potentially be a large percentage of your business.
How can you make sure you’re trending in the same direction as your customers? Ensure you’re never losing out on sales by equipping your business with a cashless payment system that benefits you and your customers in the quickest and most modern way.
What are cashless payments?
The first step of using cashless payments is understanding what they are and how they work for your business. Cashless transactions are conducted electronically and without the use of paper or coin currency, including:
Cards: When customers use credit or debit cards, whether they’re tapped or inserted using chip technology, this is a cashless payment.
Digital wallets and more: Digital or mobile wallets can include Google Pay, Apple Pay, Samsung Pay and more, and are found on phones and other devices like smart watches to be used as NFC or contactless payments.
What is contactless payment?
Contactless payments are those that require no physical contact between the customer’s card or device and the POS system during the transaction. These transactions are also a form of cashless payments. You may have heard these payments called NFC (near field communication) transactions because of the technology used within the point of sale process.
How do contactless payments work? When users hold their card or device within 10 centimetres of the POS reader, a radio frequency enables communication between the card or device and the payment reader encrypted data is sent for processing.
What are the benefits of a cashless business system?
As a small business owner, if you aren’t accepting credit cards or other forms of cashless payments, you’re missing a huge piece of the pie. Here’s why you should be using a cashless payment system and make sure you never miss a sale.
1. It’s what your customers want
A recent survey revealed that half of Irish adults now use contactless payments and digital methods more than cash. In fact, one in 10 of the respondents said they never carry cash at all.
Not offering cashless transactions affects the way shoppers view your business, too. Almost 70 percent of the surveyed 18 to 37 year olds said they would expect all of the retailers, bars and shops they visit to accept contactless or digital transactions.
2. It’s Faster
Few things can feel more frustrating to a potential customer (and employee) than a growing queue of people, with lagging service due to a slow shop till. Cashless payment system transactions are much quicker than counting out change and waiting on shoppers to fish the proper bill from their wallets. Plus, you can even turn on features like ‘skip the receipt’ to speed up your queue during busier times. You’ll have your happy customers on their way in no time in comparison.
3. It’s Easy
Cashless transactions couldn’t be simpler for your customers. All it takes is a tap of their card or mobile device on your payment terminal and processing is finished in seconds. It’s fast, efficient, and leaves no need to fish for change.
4. It’s Safe
A cashless card system is a safer alternative to keeping a till of paper currency on-hand. It reduces the risk and safety concerns to both your employees and your business. Plus, Square’s processing encrypts data in its cashless transactions to ensure your customers are protected as well.
How to make the move towards a cashless business
With two out of three Irish adults opting to use digital payments multiple times per week, it has never been more important to support cashless payments in your small business. Providing customers options when it comes to ways to pay keeps your business current, customer-minded, and efficient.
How do you take steps to a more cashless business model?
- Consider what you need. Do you have a way to process payments beyond cash? If not, you’ll need a cashless payment system.
- Think about what your customers require. Considering most shoppers are now “card-only” or “card-first” customers, meaning they prefer to only use cards as payment or will always try to use a card before cash. Cashless payment options are more and more becoming a necessary element of a business.
- Talk to your staff. A new system requires some staff training, but Square’s offerings are quick to learn and easy to use. Shortening queues during busy times and getting customers through cashless transactions faster can benefit your employees as well.
What are the components of a cashless business system?
To get properly set up to support a cashless payment system for your small business, you’ll need a few things to get started:
Virtual Terminal: In order to begin taking cashless payments, you’ll need a way to process credit cards. This can be performed manually with a virtual terminal, which turns a web browser on your computer into a credit card terminal. This is best for cashless transactions done via telephone or for remote billing.
Contactless Card Reader: Take contactless payments through Square’s contactless card readerto save time and create efficiency for your small business. Square Reader allows you to safely and quickly process chip and pin cards as well as Apple Pay and Google Pay cashless payments through smart phones and devices.
Payment Terminal: If you prefer to have an all-in-one, cordless payment terminal that can go anywhere in your business and collect cashless payments, this device is for you. From accepting PIN numbers to printing receipts, Square Terminal can do it all in one place.
It’s time to grow your business and never miss a cashless payment sale again. If you are still a cash-only business today, there’s no better time to consider a move to a cashless payment system.
Square is here to help get you prepared for the transition into your new way of doing business. Whether you’re looking to become a completely cashless business or just want to be able to accept contactless payments for health and safety, Square can get you there with more payment solutions that are right for your small business.