According to a recent survey conducted by Software Advice, nearly one-third of small business owners say they are not equipped to accept digital payments from their customers.1 Unfortunately, resisting this trend may end up hurting your business more than you think.
Digital payment methods have been on the rise over the last decade. Crossing the threshold of $3 trillion in digital global spending in 2015, they’re projected to cross $3.6 trillion by the start of 2017.2 More importantly than how much is spent digitally, though, is who is making those payments. It was projected that $37.5 million would be spent digitally in the U.S. in 2016. Of that amount, nearly a third of those consumers were between the ages of 25 – 34.3 By steering away from digital payments, you may isolate yourself from 29%+ of projected sales.
If you’re still wary about the idea of offering digital payment options, consider these potential consequences of cash-only payments.
People are carrying less cash — When banks provide free or low-cost fraud protection, there is less motivation to carry cash (a potentially risky endeavor). That being the case, some customers may walk away from a purchase because they do not have enough cash on hand. If you are a restaurant owner, there is potential that your waitstaff could get shorted on tips, creating a negative work environment.
Customer expectations have changed — We know that a large section of the market prefers using a card over cash, but have you ever stopped to consider why? Beyond the safety benefit listed above, customers are used to the convenience of a card. It’s quick and easier to carry. Refusing to cater to that convenience can turn a customer away from your establishment. The more effort it takes for a consumer to make a purchase, the more likely they are to abandon it before they complete their purchase.
Time is money — As a small business owner, you know how valuable your time is. You have to wear many hats and perform many jobs, including cashier and accountant. Digital transactions can be much easier to manage, especially in a high-volume store. Most digital systems have a way of automating your daily sales and can save you minutes, even hours, of your day that you used to spend counting cash and balancing accounting books.
Not sure how to make the transition to mobile credit card payments? Here are a few options available to you now. If you’re not sure which one is right for you, reach out to the company and get your questions answered before you make your final choice.
This card reader fits easily into your cell phone or tablet, making it easy to accept credit card payments no matter where you are. Rates per transaction are on par with the rest of the industry, and the interface is very user-friendly, ensuring your transactions go smoothly. Best of all, you can see deposits in your account quickly — as soon as the next business day. Square is a great choice for small business owners with a brick and mortar location, those who are always on the go or those who struggle with new technology.
Internet-based businesses will find a lot to love with Stripe, an online payment platform (and more!). Stripe is a great choice for you if you want to integrate with other platforms like Postmates or Door Dash. It also has additional payment structures that can be used for things like subscription services.
Similar to Square, PayPal Here processes payments from a keyed-in or swiped card. In addition, PayPal Here users can use an image capture feature to electronically deposit checks. Many online customers have a PayPal account set up, so they can even use that to process a payment. Personal PayPal accounts can be linked to checking accounts or a credit card, so the customer is able to select their preferred method of payment.
1NFIB. (April 28, 2016). What you need to know about mobile payments. Retrieved January 09, 2017, from http://www.nfib.com/content/resources/technology/what-you-need-to-know-about-mobile-payments-73615/
2Smith, S. (March 21, 2016). Global digital payments to reach $3.6 trillion this year, Juniper Research finds. Retrieved January 09, 2017, from https://www.juniperresearch.com/press/press-releases/global-digital-payments-to-reach-$3-6-trillion
3EMarketer. (October 26, 2015). Mobile payments will triple in the US in 2016. Retrieved January 09, 2017, from https://www.emarketer.com/Article/Mobile-Payments-Will-Triple-US-2016/1013147