Wikipedia describes a cashless society as “an economic state whereby financial transactions are not conducted with money in the form of physical banknotes or coins, but rather through the transfer of digital information (usually an electronic representation of money)”.
Australia is closer than ever to becoming a predominantly cashless society.
Already more than 80% of Australian transactions are made online or through an EFTPOS, credit or debit card. Simultaneously there is a decrease in ATM withdrawals, which are now at a 15-year low.
We are carrying far less cash than ever before. The change should not come as a surprise to anyone, as the convenience of mobile devices has taken over.
But what might a cashless society mean for small businesses?
If you operate a small business that relies on passing trade such as a bakery, fast food establishment or market stall and rely on people making a spontaneous purchase, then it makes sense that you are equipped with the tools to take electronic payments.
Small businesses must benefit from the convenience offered to shoppers. How many times have you abandoned a purchase because you got to the till and there is a sign that says ‘cash only’?
One of the benefits for a small business is that studies show people actually spend more when using a credit or debit card instead of cash because it’s easier for customers to buy additional items.
Business Tip:
Make it easy for people to do business with you by offering the option to pay with EFTPOS, credit or debit card. There is now a range of different priced card facilities on offer, so choose one that suits your budget.