Any reasonable person would agree that cashless transactions have completely transformed the financial landscape of India. Using phones for payments instead of using cash has increased immensely since demonetization, and now, due to the COVID 19 pandemic.
Whenever the business of most SMEs came to a halt during the lockdown, the businesses that had moved to cashless payments always managed to make profits.
Cashless business, as the name suggests, is a new form of system in which businesses use mobile applications, SMS messages, MasterCards, credit cards, UPI, or even cryptocurrency to accept payments.
The following are some of the incredible advantages of going cashless for your business.
The simplicity and practicality of making and receiving payments are some of the significant reasons why you should focus on digital payments. Online payments eliminate the need to carry money, and they likewise save time, as businesses and clients never again have to line up in long ATM queues.
Cashless modes of payment are made secure using several layers of encryption and information verification protocols. Most payment portals have two-factor authentication to add an additional layer of safety.
Likewise, it's simpler and more secure to carry a smartphone as opposed to carrying stacks of money.
Having a cashless system can also assist you with bringing down the amount of internal processing that occurs in your business. Your financial frameworks are undeniably safer when they are not accessible to small amounts of robbery over the long run, for example, a dishonest individual minding the cash counter.
It is more challenging to subvert the security frameworks for cashless transactions, particularly for individuals without the knowledge to do so. Moreover, assuming somebody figured out how to do it, it would be easier to track them when compared to the traditional payment methods.
To accelerate the transition toward a cashless economy, the government has chosen to provide discounts and offers for people who regularly use online payment methods.
The government is providing plenty of waivers on cashless transactions used for tax payments, the purchase of petrol, train tickets, government bonds and insurance plans.
Going cashless makes it effortless for you to automate your bookkeeping and accounting undertakings. This automation can be particularly useful while recording taxes since all the transaction information, including tax data, is readily available at your fingertips.
You can likewise transfer your transaction information to different tools or data sets to further improve your customer service, product listings, and advertising.
Automation assists with reducing human errors, which is generally probable with customary bookkeeping.
In addition to this, it also saves your time and even avoids the need to hire a professional bookkeeper as all the information that you require is easily accessible and appropriately organised.
Counting cash is a tedious process that takes up a lot of time. By making the switch to cashless payments, transactions become quicker as well as more effective.
If you're in the retail business, it can also allow you to manage more transactions each hour. This can help you boost consumer loyalty, as client stand by time for paying decreases by a huge margin.
You can also use cashless payments with other payment modes such as SMS messages to enable effortless text to pay transactions.
If your business conducts business on a global scale or operates on a border, then the constant need for converting cash can be an issue. The transition to a cashless business makes purchasing foreign cash more seamless.
Your foreign clients can pay through their payment applications - which directly consider the current exchange rate.
Burglary can often leave a major hole in your business. The risk of burglary will carry on until individuals carry cash, and by transitioning to cashless payments, it can be effectively reduced.
This also reduces government costs of catching these offenders. In the USA, thefts and assaults have significantly reduced once the government transitioned to electronic transfers for payment.
Each electronic transaction provides you with specific data about your clients. Cashless payments can thus assist you in conducting in-depth market research and understanding your customer base in more detail.
These benefits lead to a great advantage of using cashless payments: a better bottom line for your business. Using cashless payments, you can decrease the expenses associated with human errors, manpower, and time.
Cashless technology helps you to accomplish more with your business every day and generates higher revenue— both right away and over the long run.
If you are considering making a transition, ensure that you communicate it clearly to your customers. Place simple-to-read banners in your store and post standard updates using your social media platforms.