A couple of years ago, the phrase “going cashless” seemed like a buzzword meant to describe an economy well into the future. 

However, during the COVID-19 pandemic, our lives were turned upside down—including the way we purchased necessary goods and services. Given the advancements in technology that occurred in the last year, it makes sense that the use of cash would drastically change as well.

But what would happen if companies went cashless, and how it could benefit customers who maybe still prefer cash? Is it really what it sounds like? And what are some of the key points businesses need to consider before adjusting their operating model to lean more (if not entirely) on digital payment technology? Find out here:

What does it mean to be a cashless business?

Whether it’s paying back friends with a digital payment service such as Venmo or shopping at farmers markets or retail stores with Apple Pay, we are already familiar with the underpinnings of a cashless economy. Some businesses even have their own forms of cashless payments, such as the wristbands at Disney theme parks or the play cards at Dave & Buster’s restaurants. These payment forms offer major benefits to the bottom line and overall customer experience.

Accepting a digital or card-based payment takes less time than processing a cash transaction, increasing the number of customers that can be moved through the check-out process. Similarly, businesses can spend less time and energy counting, validating, storing, and depositing cash and reduce the risk of shrinkage or theft.

What are some considerations for going cashless?

It is important to note that, despite the “cashless” term, businesses that do not accept any cash are still rare, and for several good reasons.

Customer Preferences

Although a significant number of customers could easily adopt the technology needed to enable a cashless economy, some would choose to avoid the practice or would not even have a choice.

In fact, according to a recent Pew Research Center study, adults making less than $30,000 were four times as likely to pay for their goods and services with cash than those making at least $75,000. 

There are also certain purchases that customers prefer to use cash to complete. One estimate notes that cash is heavily preferred for transactions under $10, representing 49 percent of these small-value payments .

Additional Fees

Although the digital technologies that enable cashless payments are quickly evolving, the fees that surround them have been around for quite some time. According to one estimate, the average fee per credit card transaction in the United States is between 1.3 and 3.5 percent, adding up to more than $90 billion per year. 

Those extra costs are either passed on to the customer or paid directly by a retailer, and can quickly add up over time.

Get the support you need for your payment technology.

Regardless of the blend of payment technology that makes up your business, you need peace of mind that it will operate reliably and with the necessary uptime to serve your customers. This is especially true for businesses closer to being cashless than others, as downtime will directly result in a limited ability to accept payments.

It is also likely that your payment and transaction automation technology ecosystem contains many different types of hardware and software providers, increasing the need for an OEM-agnostic service provider that can maintain your cashless and cash-based devices, both now and in the future.

In these two areas—and many others—Burroughs can provide the seamless, comprehensive, and nationwide service and support that your business needs.  

Stay ahead of the curve with Burroughs.

Although we may not know what the next few years have in store for our economy and businesses, we do know that having agile, flexible, and reliable operations will be key to finding success. 

That’s why you need a service partner with more than 130 years of experience in the payment and transaction automation technology industry, such as Burroughs. We can deliver the service and support you need today and the cutting-edge technology you will need in the future.

Ready to learn more? You can connect with one of our experts here. While you are at it, download our latest free resource, Quick Guide to Your Payment & Transaction Technology Ecosystem.

Quick Guide Download