Welcome to the first official work week of 2020. We are not just experiencing a new year, but it’s an entirely new decade. It sounds a bit strange to say, but we are, indeed, living in the 20s! We can only imagine what technological advances await us. One thing is for sure – the world is getting closer and closer to going cashless.
We’re not necessarily saying that the cash is bound to become obsolete this decade. However, based on recent trends, cash is steadily growing less necessary. The ability to pay someone – anyone, not just a merchant – is as easy a few clicks on a smartphone app. People can easily transfer funds from their bank accounts to those of their friends by using Interac e-transfer. Handing over cash simply isn’t a requirement anymore.
Sweden is poised to lead the cashless world.
Apparently, the European nation is leading the rest of the world in establishing a cashless society. As reported by the Wharton School of the University of Pennsylvania, Sweden is expected to become the world’s first cashless society by 2023. Jonas Hedman is the associate professor at the department of digitalization at the Copenhagen Business School. He has actually predicted March 24, 2023 as the date when Sweden will become a cashless society.
“We arrived at this date through our research in which we surveyed 750 Swedish retailers,” he details in an interview with Wharton, “We studied their cash management costs and the decline of cash in circulation in Sweden. We found that when cash transactions fall below 7% of the total payment transactions, it becomes more costly to manage cash than the marginal profit on cash sales. When this happens, an economically rational retail management should stop accepting cash.”
What are the benefits of having a cashless society?
Convenience is a top draw for those who prefer to make payments with credit cards and debit cards. For the majority of cardholders, it’s the love of not ever having carry exact change, not having to adhere to spending limits and not worrying about losing their money that makes plastic preferable over paper.
Matthew Cochrane of The Motley Fool also highlights the security benefits of going cashless. “Unlike most other methods of payment, once cash is taken and the bad guy gets away, there is no institutional recourse for the victim,” he writes, “The money is gone, unlikely to ever come back. With credit cards, American consumers are given much greater legal protection and can only be held liable for $50 if they have been victims of fraud or theft.”
How can your business thrive in a cashless world?
At Canadian POS, we have many years of experience that prove that when merchants accept all forms of payment, they significantly grow their customer bases, boost their sales and increase the sizes of their average transactions. It has also been proven that newer technologies, like the revolutionary Poynt Smart Terminal, are vastly improving the credit card and debit card transaction experience.
It’s a new decade! It’s the perfect time to upgrade your POS system! For more information about the Poynt Smart Terminal, please don’t hesitate to call Canadian POS at 1-877-748-2884 or email us at info@localhost.