SMEs need to be prepared for a society where consumers use much less cash.

While we may not be ‘hurtling towards a cashless society’, we are certainly moving quickly towards a society where less cash will be used.

Remember cheques, those sheets of paper that came in a little book that you had to write on and date and sign? Well, cash is going the way of the cheque.

There will be a lot less cash floating around in the next few years as more people adopt ‘tap & go’ and mobile payments.

Cash is not ‘free’

There are now many ways for customers to pay retailers and suppliers and it is vital, as a small business owner, that you are ready for the less cash world.

Many smaller retailers and business owners don’t want to pay the charges that are incurred to accept card payments – and they wrongly assume that cash is ‘free’.

For every small business the costs of accepting, processing and banking cash are high. Handling cash is not ‘free of charge’. The security costs associated with handling cash are also very real.

Card and mobile payment solutions are safe and cost effective.

Don’t lose your customers

However, for the small business owner, it’s the loss of customers that should concern them most.

The ‘customer is always right’ and small businesses need to give their customers flexible payment options.

The limit for ‘tap & go’ payments in Ireland now stands at €30. Two contactless, ‘tap & go’ transactions are made every second in Ireland and retailers are beginning to see strong results. Not to offer your customers non-cash payment options is simply bad for business.

According to the Central Bank of Ireland, in May 2016, total transactions on debit cards hit €4.2 billion, the highest recorded figure since December 2015. Just over €2.6 billion of this was at the point of sale (POS), while the remaining €1.6 billion was at ATMs.

Welcome to the less cash society. Be prepared.

READ MORE: Debit & credit card terminals for businesses of all sizes.

Did you know?

In 1661 Sweden became the first European nation to issue banknotes, but today cash is disappearing from the country.

It is forecast Sweden could become a cashless society by 2030.

Out of the 1,600 commercial bank branches in Sweden, over 900 no longer offer cash-handling services. Many banks have discarded cash services in their branches completely.

This post was originally published here - https://www.thinkbusiness.ie/articles/debit-credit-card-payments-small-business/ on