Cashless payments—are they a concept that fits perfectly into our modern lives, or are they a completely unnecessary form of payment? We did some research and came across some interesting facts regarding both shoppers’ opinions and sellers’ perspectives.
Let’s be honest: What woman hasn’t been in this situation? You pop over to the shopping district to run a quick errand and, as a result, only have a relatively small amount of cash in your purse. As luck would have it, though, it’s precisely in this situation that you happen to walk past your favorite store, which has finally started that long-awaited sale or suddenly marked down that sweater you’ve often admired—the one that’s actually way too expensive—to a sensationally low price. You really want to snap it up right away, before someone else can snag the bargain. Unfortunately, right at that moment, you only have that small, already earmarked amount in your wallet, and in your mind you can already say goodbye to the great sale discounts or that stylish sweater. That’s why the concept of cashless payments is enjoying steadily growing popularity these days! After all, the various payment options give people the chance to buy the product they want at any time, even if they happen to have little cash on hand.
The Benefits of Cashless Payments for Shoppers
One of the most widely used methods of cashless payment is the so-called “EC card.” The abbreviation “EC” stands for “electronic cash,” which describes the card’s function quite accurately: Once you’ve had an EC card issued by your bank, you can use it to make cashless payments. To do so, the card is scanned at a terminal designed for this purpose, which automatically triggers a debit from the account linked to the card. To ensure security against unauthorized access, the EC cardholder must verify the transaction by entering their PIN—a four-digit secret number—or by signing. Receipts for the payment are then printed, serving as written proof of payment for both the customer and the merchant.
This way, even impulse purchases that weren't originally planned can be handled quickly and easily.
Cashless payments are also beneficial for sellers
As can already be seen from the preceding discussion, store owners who want to offer their customers cashless payment options will need to make a small investment—that is, they should purchase an EFT-POS terminal. While this involves additional costs for merchants, it can prove to be a huge advantage for the store and its sales.
Sellers can enjoy the following benefits by integrating cashless payments into their business operations:
- Customers who might otherwise have just browsed are more likely to overcome their hesitation and purchase the item they want
- Spontaneous impulse purchases—ones that weren't actually planned—are on the rise
- Payment processing is faster ( = more customers can be served in the same amount of time)
- There is less cash in the register ( = in the event of a robbery, electronically transferred amounts cannot be stolen)
- There is no longer any need to worry about receiving counterfeit money
- Employees can complete the nightly closing process more quickly
However, in order for merchants to take advantage of the many benefits of EC-Cash payments, they must first purchase a compatible merchant terminal. Unfortunately, many merchants—especially those who have just started a business or launched a new venture—choose not to invest in such a device out of fear of the associated costs. When making this decision, however, merchants should keep in mind that they are also missing out on substantial sales—from impulse purchases.
Merchants who are still on the fence and weighing the pros and cons of this purchase should take a closer look at what the SimplyCash team has to offer. Here, they can rent modern terminals for cashless payments at low prices. For example, renting a stationary terminal costs just €8.88 per month—with a short minimum contract term of only 6 months. This price is perfect even for new business owners and those just starting out, allowing them to offer cashless payments to their customers in-store. Of course, there are additional costs associated with using the rented terminals; specifically, each transaction processed at the terminals costs €0.49. This price is truly affordable, especially in the beginning when few such transactions are expected! However, if business takes off and the number of “electronic cash” payments steadily increases, it’s worth considering switching to an affordable transaction package. This costs an additional €4.00 per month but includes 10 free transactions and a reduced transaction fee of just €0.29 per payment.
Merchants who make smart use of SimplyCash's offerings can give their business a significant boost without being overwhelmed by exorbitant costs.
