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Think your small business does not need cashless payments? Think again.

 

Making payments with something other than cash is nothing new. What is different, however, is the variety of methods that can be used instead of physical money to make purchases, settle debts and more. These contactless and cashless payment solutions have been on the rise for some time.

 

However, not all businesses are ready to say goodbye to cash due to these common misconceptions about cashless payments:

 

  • Cashless payments are not secured:

From QR Pay to Card transactions, cashless payments go through several layers of protection and security measures. For the assurance of customers, businesses that accept cashless payments must also adhere to a set of security measures to protect their customers' private information.

 

  • Face-to-face businesses don’t need cashless payments:

If you don’t have an online business, do you still need to provide cashless payments for your customers? The answer is a resounding yes! According to BNM, consumers made an average of 221 e-payment transactions each, while the number of active e-wallet users increased to 13.5 million in 2021.

 

  • Late fund settlement:

This is a common misconception that we’re happy to debunk. For example, payments via DuitNow QR takes a maximum of only 2 days to be debited into your business account.

 

Still not convinced? Here are 3 reasons how accepting cashless payments can boost your business even more: 

 

Improve Your Business' Cash Flow

Cash flow is the lifeblood of businesses. Your business will struggle if your revenue arrives too late and you are unable to pay for business-related costs.

 

The good news is cashless payments make it easier for you to monitor your cash flow and your business bank account without delay.

 

Another way cashless payments optimise your business cash flow is with automatic monthly charges—your business can receive its payments on time and quickly. Moreover, your payments are stored and submitted automatically, which prevents employee errors and missing change.

 

It is also more convenient for consumers and businesses to use electronic payments over cash. Cashless transactions are faster, which means that customers will not have to wait too long to be served, and business owners can easily manage their funds and accounting.

 

Increase Your Sales and Encourage Higher Spending

 

Cash transactions often result in slower checkout times and longer customer lines, leaving you with a lower business sales volume and unhappy customers. By adopting a cashless payment system, moving customers through checkout becomes much faster.

 

Customers also enjoy greater comfort and convenience when paying with credit cards and cashless payments. This is because card companies make cashless payments more attractive by offering rewards such as cashback, discounts and more.

 

Moreover, cashless transactions are highly secure, with varying levels of encryption and data authentication. Cashless payments also attract a broader customer base. They encourage big-ticket purchases as customers no longer need to carry wads of cash or queue up for ATM withdrawals.

 

Some credit cards also offer easy payment plans (EPP) with low or 0% interest. With more purchasing power, consumers will increase their average order value, translating to more sales for businesses.

 

A Competitive Advantage For Your Business To Succeed

 

Visa's Consumer Payment Attitudes 2021 study found that there has been a growth in cashless payment adoption, primarily via QR payments, e-wallets, and contactless cards. This is especially seen in bill payments, supermarkets, and retail shopping.

 

Stay competitive and adopt cashless payments to avoid lagging behind in your industry. Few things can feel more frustrating to a potential customer (and employee) than a growing queue of people due to slow service. 

 

Businesses need to offer cashless payment options to support their customers' buying journey. With a convenient and quick payment at the counter, your customers are more likely to tell others about your business and return themselves.

 

Moreover, customer satisfaction increases with more payment options. There is a wide range of cashless payment apps and services to choose from, and they facilitate international transactions with automatic currency conversions.

 

In the past, cash was king. These days, it is more worth it for small businesses and retailers to accept cashless payments.

 

The advantages of going cashless, such as fast approval and setting up a payment gateway or terminal, usually outweigh the cons. This is because it increases convenience for customers and saves business owners time and money.

 

You can gain many benefits from cashless payments, so it is worth starting your cashless journey today. Get more business insights and other helpful financial guides and advice here

 

This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.