What are the advantages of cashless payments for businesses?

Cashless transactions offer numerous benefits to businesses. Initially, a large percentage of consumers in Europe use cards and have stated that they have not made a purchase because the business store did not accept cards. Thus, companies have access to a larger audience, while maintaining their reputation. In addition, the payment is faster since contactless card transactions take an average of only 3-5 seconds. In this case, the receipt can be sent by e-mail, which saves time but is an excellent environmental solution, considering the the number of receipts printed by a business. Finally, they provide security for transactions both for the costumer and for the business and each transaction is monitored and registered automatically. Of course, with the increase in the number of cashless transactions, challenges and issues of fraud, privacy and the digital divide have emerged such as the risk of cyber attacks

However, the EU has recently adopted a Payment Services Directive 2 (PSD2) on strict controls to make e-commerce more secure and reduce the risk of fraud for both customers and businesses. Moreover, to reduce the fraud rate, many companies use two-steps security.

Every successful business knows the importance of providing a good customer experience. Contactless payments can help by reducing waiting times and reducing paperwork. This makes contactless payments ideal for restaurants and shops, which tend to have longer customer waiting times. In addition, companies that accept contactless payments are proving to keep up with the latest technology and are sensitive to the changing needs of their customers. For cashless transactions, the business can have Contactless Card Reader or Payment Terminal and Online Store.

The new digital age and the role of e-commerce have led to the need for cashless means of payment worldwide. During the pandemic and health crisis due to the outbreak of COVID -19, the use of e-commerce transactions and cashless payments increased as part of the digital transformation. At the same time, businesses faced the need to develop websites and e-shops, and digital wallets (e-wallets) appeared to facilitate online transactions.

The European Union even passed a new law to greatly facilitate cross-border e-commerce to avoid or eliminate geographical exclusion, but also to provide better access for consumers. It has also adopted laws to improve consumer protection and the protection of personal data (GDPR) and has developed security guidelines for products sold online and to improve cybersecurity

In 2018, the use of contactless transactions within the Eurozone increased by 8%. Next year, in 2019, according to data from Statista, Iceland, Sweden, Norway, Denmark and the United States will be the countries using less cash, while the countries of Southern Europe, as well as Germany, Austria and Slovakia, will be the main users of cash

Cashless payments have increased sharply in many areas of commerce worldwide. Digital payments via cards or apps are now so widespread that some retailers no longer accept cash. The use of electronic wallets has also increased sharply, especially among young people. At the same time, many banks offer the option of contactless payment via a mobile device or smartwatch

In these apps, users can shop their cards, make quick transactions and keep a record of previous transactions. Payments are usually made using NFC or QR codes

Cashless payments not only reduce payment time, but also provide a solution to fraud and undeclared purchases that lead to tax loopholes. This payment method will also empower small businesses by allowing them to buy and sell more easily and quickly. At the same time, when e-shopping is supported, even people from remote areas have access to a company’s products and services, and online shops are open for business 24 hours a day

According to a survey, two out of three European consumers say they are now more likely to use contactless payments than before the outbreak of the Covid 19 pandemic and now prefer this method. The survey results show that all contactless card payments accounted for a quarter of all transactions in shops across Europe in the last 12 months (25%) and that “Europeans are increasingly switching to digital payment methods, with eight in 10 paying in e-commerce shops in 2021

It is very important for a business to know and adapt to the needs of the market. Especially with the outbreak of the pandemic, companies were asked to adapt to the new situation and go online.