In the not-too-distant past, most consumers paid for their everyday purchases with cash or checks. However, the wider adoption of credit cards, advances in point-of-sale technology, and heightened security concerns prompted a rapid shift toward even smaller purchases via credit cards and other types of digital payments. In light of this sea change in purchasing behaviors, it’s time to learn more about credit cards so you can harness their power for your own business.
The numbers tell the story
Hard facts help quantify what you’ve probably already come to suspect: cash is plummeting in popularity. Just take a look at these trends identified by Fundera:
76% of consumers have at least one credit card.
Of that group, 80% prefer to pay with credit cards rather than cash.
The average cash payment is $22, while the average non-cash transaction is $112.
Each month, the average shopper uses 3.6 different payment methods.
These numbers help identify some interesting phenomena. For starters, consumers use less cash and when they do use it, they don’t spend as much. In addition, they don’t just rely on a single non-cash payment option. Many now prefer to use digital payments such as e-wallets and mobile apps, in addition to paying with Visa, Discover, Mastercard, and American Express.
Boost your profitability by upgrading your payment systems
You may be one of those rare stores that only accept cash and checks, or you may have a simple stationary credit card terminal that is tied to a merchant services account. Either way, it’s time for you to join the 21st century by implementing the hardware and software that will help you accept all types of digital payments.
Doing so is not as difficult or as expensive as you think. Once you talk to your merchant account or payment processing provider, they can equip you with the low-cost hardware and software you need. Before you know it, you’ll wonder how you survived without the business optimization tools and capabilities built into your upgraded POS system.
Accept digital payments and increase your profits
With your state-of-the-art POS system in place, you’re sure to quickly discover all it can do for your store.
- Integration with barcode scanners and receipt printers for accurate inventory management and tracking for both you and your customers.
- Employee management, including productivity, onboarding, and time scheduling features.
- Customer relationship tools that allow you to reward frequent shoppers and gain insight into individual buying behaviors and product preferences.
- Reporting tools that provide insight into employee productivity, sales trends, and online behaviors.
With a modern POS system as your partner, you can increase your operational efficiency while creating an environment that will leave customers not only happy but motivated to recommend your store to friends and family.
In particular, moving towards accepting digital payments can revolutionize your retail store. For one thing, doing so will allow you to offer your customers a wide range of options for purchasing your goods and services. These can include cash, checks, credit and debit cards, digital wallet options such as Apple Pay and Android Pay, and even making purchases through a mobile app. In addition, contactless readers allow you to securely access consumer payment details without the need for any physical contact between you, your POS terminal, or the customer’s smartphone or handheld device.
In addition to providing additional options for your loyal guests, accepting digital payments gives you a way to prioritize data security. The various electronic methods are equipped with mechanisms to help ensure that sensitive information remains safe from hackers and as protected as possible from fraud and other types of data breaches. With robust techniques such as end-to-end encryption and tokenization, as well as strict adherence to the Payment Card Industry Data Security Standard (PCI DSS), your digital payment options provide far greater security than cash.
By their very nature, digital payments are electronic, traceable, and accurate. Instituting them in your business reduces the likelihood of data entry errors, improves security, reduces the potential for fraud, and adds a level of convenience that both staff and customers appreciate and value. While cash remains a viable way for some customers to make purchases at certain times, it seems clear that digital payments have taken precedence. Incorporate them into your business and you too can take advantage of their many benefits.