It’s official – cards have overtaken cash. In fact, 77% of total retail sales are now paid for by card and it’s estimated that by 2024, 16 billion card transactions will be taken a year.
This was happening before Covid-19 hit us. One of the impacts of this terrible virus has been an even more dramatic shift towards a cashless society.
When the World Health Organization released a statement on March 9th recommending that people turn to cashless transactions to fight the spread of Covid-19, a number of governments and retailers across the world took action.
‘In China, thousands of banknotes were destroyed or disinfected to eliminate the spread of the virus. South Korea followed suit, and in the US, the Federal Reserve has started storing banknotes that have come in from Asia before recirculating them back into the economy’.
The number of digital transactions relative to physical cash transactions has soared as more and more countries go into lockdown. It really is the beginning of the end for cash. A cashless society may just be around the corner.
No business nowadays can now survive without taking card payment. How can they when most people no longer carry cash on them, and more and more cash dispensers are being removed off our high streets.
During the Covid-19 crisis some retailers have banned the use of cash in their stores to keep employees and customers safe, opting for contactless payments instead.
Trading during Covid-19 has been helped dramatically by the increase in the contactless maximum spend amount to £45 from £30, as well as shoppers’ preferences to pay without touching card terminals or handling cash.
It is better all round. It is safer as stops customers from having to touch a pin pad, and contactless transactions are, on average, seven seconds faster than Chip and PIN, and 15 seconds faster than cash. Queues are far less likely when people pay contactless.
Coronavirus marks the real beginning of the end of cash. In today’s climate, where the global health crisis of COVID-19 means we are now in lockdowns and varying levels of social distancing, the need to improve and use digital payments is more important than ever. After all almost everyone, young and old has a credit or debit card.
The coronavirus pandemic has placed front and centre before us the question of whether societies need to use physical money. In fact, it reignites the rolling debate of whether hanging onto the use of physical cash is a wasted endeavour. I don’t believe there’s any going back from here.
Anyway, is there any point clinging onto notes and coins? Even from a health point of view, it has been pointed out yearly in benchmark reports how riddled physical cash is with bacteria.
As UK Finance, the trade association for the UK banking and financial services sector, has pointed out, almost the entire adult UK population (98%) now owns a debit card and by 2024 debit cards are forecast to account for half of all payments in the country.
If you are a business owner who currently is not accepting card payments, you’re missing out on sales. We know that. Accepting card payments is an easy and quick way to boost your business. It makes impulse buying easier, increases your customer base (especially if you’re creating an online shop) and means you won’t have to turn any cash-carrying customers away. Plus, it’ll mean you have less cash and cheques to deposit, so fewer bank fees. It’s win-win-win situation for you.
Whether your business is looking to start credit and debit card payments or you are looking to switch to a new provider – talk to me, let me help you find hassle-free card payment solutions saving you money whilst maximising your sales!
Thank you for reading this or listening to my podcast.
Stay safe and happy trading.
This is Larry Lewis
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