As the world we live in begins to modernize exponentially, cash transactions are becoming less of a necessity as the consumer base shifts towards digital and even mobile methods of payments. In many developed countries, forms of cash payments are almost completely gone as they have found other alternatives to pay for products and services. By no means is cash going extinct anytime soon, but the recent shift away from it is a prominent trend to take notice. Here are a few key points to stay ahead of the times.
The Transition to a Cashless Society
In the past four years, society’s use of cash has significantly dwindled. In a recent study conducted by the Harvard Business Review, the use of cash for transactions under $20 has dropped rom 46% to 37%. There are several reasons for this transition from cash to digital forms of payment.
For starters there is a rising hate among consumers in regards to carrying cash and coins around. Not only does the consumer have to worry if they have enough cash on them at the time of purchase, but they then must pocket the change and coins that come after the purchase. In a society that is beginning to value minimalistic approaches, having to carry around spare change and cash is a looked down upon burden. As a result, people are switching to digital forms of payments where no forms of change is required, lessening the burden of having to carry around stuffed wallets.
Another reason consumer usage of cash has declined in recent years is that it lacks efficiency. It is much quicker sliding or entering a card versus paying with cash and waiting to receive the exact change back. In a society that lacks patience, using digital forms of payments has become an essential part of many people’s daily lives. As smartphone usage and digital payments expand, so will cashless capabilities.
Cash Register to POS System
POS systems have been around for quite sometime. They began replacing the old fashioned cash registers in the 1970s and have been aggressively progressing ever since. The introduction of new levels of customization has allowed POS systems to adapt efficiently and effectively in recent years. In the modern world, it helps to have the latest technology and when it comes to POS systems, this is no different. Incorporating the latest updates and technology can give your business (retail, hospitality, big box, boutique, mom and pop) the competitive advantage it needs to succeed.
In a world where cash is becoming less and less dependent, having a cash register sets yourself behind the competition. While other businesses are streamlining everything through one processor, a cash register is far less efficient and inaccurate, possibly hindering your business’ growth. They were machines perfected over a century ago to manage cash, so in a time period where cash transactions are drastically declining and other forms of payments are on the rise, it is time to manage your business accordingly. As limitations of cash registers continue to increase, its relevance in the modern day of business continues to decrease.
POS Systems in a Cashless Society
Although a 100% cashless society won’t be coming anytime in the near future, it is certainly reasonable to see 50%, 60%, 70% cashless as conceivable marks down the road. In fact, many markets in more developed metropolitan areas are already at these numbers. A key tipping point to keep in mind is when the younger, tech-savy generation begins dominating the consumer base. This generation will integrate their own digital payment habits, forcing businesses in the future to adapt accordingly.
For now, one of the best ways to adapt to a cashless society is to integrate a POS System. POS Systems have routine software updates that allows them to stay ahead or with the times. As new methods of payments are being introduced, having a POS System will help you make every sale possible. Not only do they provide an advanced data tracking system, improve overall restaurant efficiency, but they also have the potential to allow your business to adapt on the fly as a cashless society becomes significant. With so much competition within the ever-changing restaurant and retail landscape, brick and mortar businesses must ensure one simple thing: never miss a sale.