Cash transactions in Australia decreased by 46% between 2010 and 2016, according to Australian FinTech. Experts speculate that Australia will become a cashless society by 2022. Given this move away from cash transactions, it is important to consider how your business stands to benefit by implementing cashless transactions.
Cash transactions only comprise about 10% of all purchases in Australia, according to FinTech. Most transactions use credit and debit cards and from smartphone use. 79% of Australians believe that electronic payments via smartphones will become the norm. Many Australians have moved away from using cash, so offering cashless transactions is the more convenient option for consumers. Consumers may not have cash and may not be able to complete a purchase if the business is only cash-based. Additionally, customers are more likely to have their phones with them to purchase from that medium or to carry an electronic form of payment, such as a debit or credit card.
Reduced Overhead Costs
Visa commissioned an independent study that was conducted by Roubini Thoughtlab to determine the economic impact of increasing digital payment use in major cities across the globe. The study found that accepting cash and checks costs businesses 7.1 percent of every dollar earned, compared to 5 cents of every dollar that is incurred due to digital payment. Much of this cost comes from the additional fees associated with handling physical cash. By transitioning to a cashless system, businesses are able to take payment without worrying about safe storage and transportation costs. They also do not have to invest in security cameras and security guards to protect against theft of money. Governments The Visa study found that governments of the 100 cities that were part of the study could save approximately $130 billion per year. This was partially due to a lower criminal justice cost caused by reduced cash-related crime.
Improved Cashflow and Sales
Cashless transactions are also much more efficient than cash transactions. In-store waiting time can be reduced when customers are not waiting on others to dig through their wallet for money. They can simply swipe or tap and go. Additionally, cash management systems can be avoided in exchange for a simple commercially available device.