With the digital push of 2020, cash usage declined. The surge in contactless payments and the fact that it’s still at an all-time high left many questioning: Will digital payments replace cash?
Benefits of Digital Payments
There’s a reason more than half of American consumers are already using some form of contactless payments.
- Checkout efficiency means your customers and your staff can save on some time
- Less risk of money going unaccounted for
- A detailed look into spending habits and trends
- Competitive advantage against big-box businesses
- Reduced germs transferred by avoiding cash
59% of consumers use more contactless payments since COVID.
What Would a Cashless Future Look Like?
The idea of a cashless society isn’t impossible to picture. In fact, that was the driving force that created checks. And with digital wallets in such high use, it’s becoming easier to picture. But what would a cashless future look like?
For small businesses just starting up, strictly cashless could be a total nightmare. However, those who can’t afford fees associated with payment processing would be forced to make it work. Higher start-up costs could put them at an immediate disadvantage.
Luckily, it’s unlikely that we will completely do away with cash — at least not any time soon. This means more time for small businesses to get comfortable before they take the mandatory leap into digital payments.
71% of consumers intend to continue using cashless payments in the future.
Because they’ve grown accustomed to the ease, convenience and safety that comes with digital payments, more and more shoppers expect it.
However, by using a platform that provides digital payments, your customers can pay in a way that’s convenient to them. Plus, you’ll gain the ability to give the customer a polished invoice at the end.
Countries Working Toward Cashless Payments
Because cryptocurrencies are pitched as decentralized alternatives to paper money, some central banks have decided to create crypto competitors that they control.
While the US is still working on developing a central bank digital currency, nine countries already have taken the dive.
- The Bahamas: The Sand Dollar
- Nigeria: e-Naira
- Antigua and Barbuda, Grenada, Saint Kitts and Nevis, Saint Lucia, Dominica, and Montserrat: DCash
- China: Digital yuan
The Future of Digital Payments
It’s clear that digital payments are becoming more and more prevalent as time goes on. That trend is likely to continue as the coming generations are more digitally native.
Lucky there is software out there to get small businesses on the right track. The key is to do the research and ensure you’re getting the best option for your business.
Curious about the many ways you can give your customers the experience they expect? Download the Thryv, Payments Dive 2022 Consumer Payments Survey to learn what customers actually plan to spend their money and how your business can make the digital with your customers.