When it comes to cash transactions, merchants tend to encounter several bottlenecks, some of which is in-evident to them most times. These challenges include:
- Accounting: Transaction with cash often makes accounting a nightmare, with lots of difficulty around tracking payment made and more often than none, it’s always difficult to separate the business money from personal money, making things extremely difficult especially when it comes to paying tax.
- Risk Association: Transacting with cash on a daily basis is always open to risk such as theft, difficulty in logistics and even fire outbreaks. A thief can walk off with your hard-earned cash unlike digital transactions that would make this a hard nut to crack.
- It necessitates frequent visit to the bank to make deposit (task that can all together be avoided), where as, with digital payment, your payment is made directly into your accounts and allowing your team more time to focus on other aspects of the business that really matters.
- When it comes to cash payment, you’d have to manually track every payment made and debt incurred, unlike digital payment where you can quickly pull up the information to see who still owes you money and you can determine who will be more likely pay you again based on past behavior.
- Finally, it might be argued that the processing fee on payment might discourage merchants from engaging in digital payment, this loss still can not be compared to losing a customer/client because they do not have the cash to process payment, thereby losing the opportunity to initiate another distinct relationship.
When you allow for more options, your potential customer base broadens and expecting customers to pay only with cash translates to bad business as customers are unconsciously willing to buy more when they pay via digital methods.
Let’s say cash at hand might be king, but what purpose does it serve when it is faced with these limitations and even more?
Don’t be one of those merchants that makes the life of the customers more difficult by not accepting multiple forms of payment.