- SMEs DEALING IN CASH COULD BE COSTING THE UK ECONOMY UP TO £39M IN LOST CHANGE PER YEAR & 7M BUSINESS HOURS A WEEK
- NEARLY HALF OF SHOPPERS WOULD RATHER PAY BY CARD, YET THREE MILLION RETAILERS STILL RELY ON CASH TRANSACTIONS
- ALMOST TWO IN THREE BUSINESSES SAY THEIR OVERALL TAKINGS HAVE GONE UP BY AROUND 25% FROM TAKING CARD PAYMENTS
There’s nothing more infuriating than getting to the front of a retail queue to be told that it’s cash-only and all you have to hand is a bit of shrapnel. Yet, cash-only businesses might be having a more detrimental effect than just frustrating customers, as research suggests it’s also affecting the UK economy.
Research released today from Square reveals human error when counting change is costing UK business owners and the economy an estimated £39 million annually. What’s more, the time spent at banks dealing with cash collectively adds up to over seven million business hours each week.
The research suggests that loose change is a big contributor to the £39 million figure, as a quarter (26%) of consumers said they would never own up if they got too much change. On average, respondents admitted they would take up to £2.35 before confessing and two-fifths (38%) of business owners surveyed who do not accept card, have had a customer not pay for goods or services.
Having cashless payment options certainly seems like a good idea when around two-thirds (62%) of businesses that have adopted card payments have seen their profits increase by up to 25%. However despite this, some business owners still have reservations with some put off taking cards because of monthly fees (39%) or signing contracts (23%).
CASH IS KING NO LONGER
Yet for consumers, card payments remain a strong favourite. Nearly half (47%) of Britons say they’d prefer to use their cards over any other form of payment, compared to less than a third (30%) who prefer to pay by cash. SMEs are particularly missing out on the millennial market as the preference for paying by card rises as high as 56% amongst 25-34 year olds.
With the invention of contactless technology, almost everyone has the ability to pay for day-to-day products with just a tap. Yet millions of cash-only businesses are reluctant to change despite cash-only business fast becoming an unsustainable business model