Back in 2017, there were more than 14 billion cashless transactions in the United States. The numbers are higher in countries like China and India where people have started moving towards cashless payments.
Why is that the case? What makes cashless payments so appealing? Let’s take an in depth look at this phenomena:
Cashless Payments for Businesses
Since 2007, there have been several cashless payment solutions available in the market and they all share a common goal: to offer faster, safer and convenient payment solutions for businesses.
Several new companies like HKT Payments have also entered this market in the last few years and are looking for ways to play a disruptive role in this sector.
This is beneficial for retailers since they have multiple options to choose from. They can communicate with their customers and use the information acquired to offer them a better customer experience.
The biggest advantage of digital wallets is that all you need is a smartphone in order to make payments. They allow transparency in transactions and using them, you can offer services to a wider segment like young adults.
Businesses also do not have to worry about storing money since there’s no physical cash. However, in order to develop into a cashless society, it’s essential that businesses work together and develop an ecosystem.
Right now people in United States are reluctant to go for cashless payments because they are used to cash and credit card based transactions and do not feel that mobile payments are safe.
Retailers Point of View
Just a simple question; would you prefer to drive all the way to a shopping center when you have the option of purchasing products online? Of course not!
E-commerce industry has grown rapidly in the last few years and with cashless payments, it’s likely that this industry will grow in the upcoming years.
It’s not just about providing customers with a better shopping experience. Through cashless payments, businesses are able to acquire customer data, which they can use to understand consumer behavior and market their products accordingly.
However, business owners need to practice caution. They need to ensure that they do not violate the privacy of their customers.
There are many companies, which still rely on conventional methods of payment even though they are aware of the benefits of cashless and contactless payment systems. Experts suggest that it’ll take some time before businesses incorporate cashless technology.
Thinking of switching to cashless payments? Get in touch with us. We offer contactless readers for banks and retail stores. We also offer near field communication products. Contact us now at +1-510-438-6799 or visit our website for further information.