These days, it is not uncommon to see signs that depict the Visa, MasterCard and Interac logos displayed in stores and restaurants all across Canada. Accepting credit cards and debit cards is common practice. Therefore, it’s not surprising that, each day, it seems there are less and less stores and restaurants that display “cash only” signs. As we pointed out on our blog last week, there are many reasons that Canadian business owners are dropping the “cash only” way of doing things.
Here are four reasons “cash only” businesses are on the decline:
1. Technology is taking over. People aren’t relegated to having to buy items from stores anymore. They are able to purchase them on the internet and over the phone just as easy. So since the ways in which customers shop has changed, it stands to reason that the way they pay for their items has changed too. As John Heggestuen, points out on BusinessInsider.com, the use of cash and cheques are on the decline, thanks to advents in technology.
“The old paper-based tools for making and accepting payments are being swept away by the rise of e-commerce, mobile commerce, smartphone apps, and mobile payment registers,” writes Heggestuen. He also reveals a graphic that shows that cash-based transactions in the United States have experienced a significant decline over the past couple of years. This constantly decreasing use of cash is expected to continue for years to come.
2. Stats show that credit cards and debit cards are used more than cash. As mentioned, advents in technology are not only changing the ways that people shop. They’re changing the way that people pay for their purchases. Clearly, cash cannot be transferred through a computer. As a result, credit cards and debit cards are only growing in popularity. Heggestuen reveals that, in 2014, credit and debit cards accounted for 42% of transactions in the U.S. compared to 40% for cash.
3. E-commerce is on the rise. One of the major reasons that the “cash only” way of doing things is being abandoned is because online shopping continues to rise in popularity. Due to the convenience of being able to make purchases without leaving the comfort of their own homes, people are taking to using their credit cards to pay for purchases through company websites. Heggestuen sees online shopping as a major factor in the decline of cash and cheques.
“Why is everything shifting away from cash and cheques?” he asks, “E-commerce is on the rise, as well as online bill pay. On the whole, transactions in which the credit card is not physically present – i.e., e-commerce – are a growing share of all payments.” He goes on to note that many people enjoying making payments with their phones in stores, through mobile payment apps such as Google Wallet.
4. Small businesses are becoming more plastic-friendly. The “cash only” stigma seems to be most prevalent among small businesses. However, a growing number of small business owners are refusing to uphold the stereotype that they aren’t keeping up with the times. Heggestuen acknowledges smaller merchants as being tech-savvy enough to know that cash isn’t the end-all-be-all in the payment option world.
At Canadian POS Corporation, we offer Canadian business owners the ability to do away with the “cash only” way of doing things. Through our top-of-the-line Countertop and Wireless terminals, our clients can accept Visa, MasterCard, Discover, American Express and Interac cards with ease. They can also take advantage of our E-commerce solution! For more information, call us at 1-877-748-2884 or email us at info@localhost.