I have recently returned from a trip to the United Kingdom, and it was very interesting to note that most businesses we had transactions with were cashless.
It was very hard to spend actual cash.
From the convenience drinks stand at the train station to a high-end Regent Street retail outlet.
Cashless all the way.
What does cashless mean?
No cash accepted at the point of sale, no exceptions.
If you don’t have an electronic method of payment, you will be unable to buy anything, regardless of whether it is considered legal tender or not.
Business to business have been predominantly cashless for several years – when is the last time you wrote or accepted a cheque?
Pro’s for cashless transactions are things like business security.
No cash on the premises means less chance of robbery, less chance of theft and miscounted takings.
No cash on premises mean less customer to service staff physical contact (reducing opportunities for illness to be spread).
No cash taken means that a business owner is not having to make a trip to a bank or employ security to transport cash.
Transactions are credited to the business overnight or next day.
Cons for cashless are things like bank fees, on charging of fees, and very importantly, the actual connection infrastructure (internet, Wi-Fi, landlines).
Does Australia have sufficient technological infrastructure to support totally cashless transactions, particularly in our regional and remote areas?
Is there sufficient security on for a completely cashless transactional society?
Retail and hospitality businesses are the forefront of bricks and mortar businesses making decisions about being completely cashless or not.
Many have opted to pass on most of the bank transaction fees rather than put their prices up (which just creates higher bank fees).
Customers can still pay with cash in most businesses.
Are business owners prepared to go completely cashless or prefer to provide payment options to their customers?
If Australia follows the overseas trend in the coming years, what will this mean for your business, or for your transactions with businesses?
