Although the society is yet to become completely cashless, it is undoubtedly an inch closer. However, despite the increasing popularity of cashless payments, a majority of small and medium-sized businesses are still reluctant about making the transition.
You might be one among them and miss out on the countless benefits. Are you still not convinced enough? Here are five reasons why you should use a fully-integrated payment processing solution to accept credit and debit card payments:
1. Expands Your Customer Base
Whether it’s buying groceries, buying a cup of coffee, or paying for flights, more consumers are now using cards instead of cash to pay for their everyday transactions. Most millennials are using cards to pay for things worth $5 or less.
This simply means that for every 100 customers you receive in a day, about 40% of them will prefer to pay for your product and services using a credit or debit card. If you accept card payments, you’ll serve all these clients. This, in turn, enables you to expand your customer base, and consequently, grow your business.
2. Gives You a Competitive Edge
As more consumers adopt cashless payments, so do businesses. By setting up a payment processing system for credit cards, you’ll put yourself one step ahead of your competitors who are yet to do so. This means you’ll be getting the percentage of clients who other businesses will be unable to serve because they don’t accept cashless payments.
3. Reduce Security Risks
Keeping large amounts of cash within your business premise makes your business the ideal target for burglary. The chances of being mugged or kidnapped while you are on your way to the bank to cash a check are also pretty high. When you start accepting cashless payments, on the other hand, you eliminate this risk. This is because the money is deposited directly into your bank account.
4. Improved Cash Flow
Depending on the payment processing solution you opt for, card and other cashless payment deposits usually take place within two to three business days. Therefore unlike check payments, which may take up to a week to be processed, card payments drastically improve cash flow and, consequently, your business operation. Also, fast processing allows you to enjoy early payment discounts.
5. Increased Customer Spending
When purchasing anything with cash or a cheque, clients will often take time to think about their decision. They are, therefore, likely to spend less because they’ll have given much thought to the matter.
When shopping using a credit or debit card, on the other hand, they are less likely to think about their decision. Also, the fact that their credit card statement takes time to be delivered gives them enough time to recover what they wasted.
The delay, as well as the fact that it only takes a single swipe to pay for products with credit or debit cards, encourages overspending. This is an advantage on your part because the more the client spends, the better it is for you.
Accepting cards and other cashless payments will benefit your business greatly. However, for you to reap all the above benefits, you need to ensure you use the best payment processing solution. Be sure to do your research so you can find the right solution for your business.