Cash or Card, how to win as a small business
Card payments are already dominant in some European countries, and it’s no surprise that they are beginning to take over cash payments across the world.
With Convenience as the main driving force, people’s spending habits are changing.
Changing payment infrastructure:
In the past, cards were only used for the bigger payments, of above 50 euros. But now, the majority of card payments are actually under 35 euros. People want to use their cards more because it’s easier, and as a result, the payment infrastructure on offer has had to step up. More and more shops and services are offering card payments, and people are continuing to use them for lower value transactions like groceries or a takeaway coffee.
The payment landscape is even changing in the remaining cash-friendly countries too, like Italy and Germany. Italians love their cash, but they love their smartphones more, and it’s driving the cashless revolution. In 2017 mobile payments grew by 65%, and contactless payments grew even more with a 150% increase. And cash may still be dominant in Germany, but probably not for long. Apple Pay was finally introduced at the end of 2018, and will certainly speed up the transition from cash to card and mobile payments.
Consumers love convenience, and they will pick the payment method that is easiest for them. But they’re not the only sector who can reap the benefits of alternative payments.
Small businesses have it better than ever.
Accept card payments:
Gone are the days when business owners have to make long and costly trips to the bank to deposit their earnings. On average, small businesses in the UK save over an hour a day when it comes to completing accounting and administrative tasks. Accepting card payments decreases the time taken to complete the tasks from 94 minutes, to just 28 minutes.
Accepting card payments does more than save you time too. Improve your security as you have less cash on hand. Better accuracy as everything can be handled online, allowing you to keep track of all income and spending, as well as generating insights and trends for your individual business.
Goodbye cash flow problems:
And let’s talk about cash flow problems–the small business killer. Some stats say that 60% of small businesses fail due to cash flow problems, and some say that it’s as high as 82% of businesses. But whatever number you believe, we all know that cash flow problems do cause real damage.
When almost half of all the people in the UK (47%) are carrying less than a 5 pound note on them, there are still too many businesses who are losing customers and the potential revenue they bring by not keeping up with the times and accepting the preferred methods of payment.
So if you're not already, #saybyetocash and take a look into accepting card payments today www.sumup.co.uk
Sources: Italian stats - https://www.economyup.it/fintech/pagamenti-digitali-mercato-italiano-pronto-decollare-ora-vale-46-miliardi-euro/ Cash in Britain - https://newsroom.mastercard.com/eu/press-releases/britons-now-carry-less-than-5-in-cash-in-their-wallets/