Cashless payment systems have the ability to electronically store, transfer and track money. As more and more consumers and businesses rely on mobile apps and credit cards, cashless payment systems are becoming more popular and widely used.
Faster transactions saves consumers time and increases employee productivity. It is a well-known fact that during rush times and holidays, a long queue at the point of sale (POS) terminals will turn customers away. Some say that two to three times more people can be served using a cashless payment system. Improving the speed of service will be a strain on employees, but it will reduce the required number of staff during peak times. Bear in mind that certain industries experiences more intense periods of peak customer demand. For example, purchases for food products, such as through restaurants and on-site food trucks, are driven by cash and the amount of loose change available. In the end, faster transactions means more revenue.
Efficient Financial Management
Cash and check payments force accounting staff to spend time processing and handling these payments. In contrast, companies that use cashless payment systems drastically reduce the amount of accounting labor that is spent on counting cash and reconciling transactions. Accounting processes for cash and checks are something that must be manually done every day. Instead, accountants have less manual work and more electronic work because they simply use accounting information systems to process transactions and funds. A company that is able to quickly organize revenue and automatically settle accounts will enjoy real-time reporting. Having access to cash and accurate financial information will empower business leaders to make better decisions while also saving money.
The Trouble with Cash and Checks
Cash and check transactions slow down the purchase line and create bottlenecks at the checkout counter. This creates staffing problems because supervisors must staff a sufficient number of employees to deal with customers one-on-one. If the company staffs too many employees, their business will waste money, but if they staff too few, customers will have to wait a long time and may take their purchases elsewhere. When it comes to checking payments, employees must take steps to ensure that the check is good. This often requires employees to manually verify checks through their POS computer. In small businesses, employees must manually compare the name of the customer presenting the check against a list of people who have previously passed bad checks. Unfortunately, when a company accepts a check that is connected to an account with insufficient funds, the company must pursue collection through a third-party or the courts.
As a final note, handling coins and cash is unhygienic because these items are crawling with bacteria. Studies show that up to 90 percent of cash has bacteria that can cause potential health problems.