As a business, you want to be able to cater to as many potential customers as possible. One way to do this is by expanding your payment options beyond just cash. In this beginner’s guide, we’ll discuss the reasons why your business should start accepting more than just cash payments.
Payment Preferences are Changing
There are multiple factors that influence a consumer’s purchasing decision, including the quality of the product or service, value for money, and urgency. However, payment preference is also an important factor to consider. According to numerous studies, shoppers prefer using credit cards over cash. In fact, 83% of consumers aged 25-34 years old use credit cards on a regular basis, and 77% of them are likely to continue using credit cards in the next five years.
Accommodating Customer Preferences
By accepting credit and debit cards, your business can cater to the preference of a majority of shoppers. Most credit cards offer cash back or flight miles, so it’s not surprising that people want to take advantage of these rewards. With the credit card processing software available these days, it’s actually easy to provide consumers with the option to use their credit or debit cards. You’ll have a card reader in the palm of your hand for a quick swipe after a purchase. Your customers will be in and out in no time, and with no hassle at all. Some credit card processing software even have inventory tracking built in — which means your customers will never come in wanting something, only to for you to find that it’s out of stock.
Ease the Burden of Ballooning ATM Fees
The recent rise in ATM fees may be enough to discourage some customers from using cash for their purchases. According to a recent BankRate survey, out-of-network ATM withdrawals hit a record high of $4.69 on average per transaction. That’s almost $15 dollars a week if you make three separate withdrawals. Having alternative payment options will cater to your customers who don’t feel comfortable carrying large sums of cash in their wallets. Put their minds at ease by showing them that you’re open to whatever mode of payment they prefer.
Consumers Like Options
Though cash is still widely used, it is no longer the primary mode of payment across the United States. In fact, the percentage of Americans who use cash to make most of their purchases dropped by almost 10% last year compared to five years ago, and 12% of Americans stated that they don’t use cash at all for any of their purchases. Being able to accommodate those who still use cash, as well as those who are moving away from it, will help both the consumers and your business. Have the means to let your customers use their cards if cash isn’t readily available, and vice versa.
The Luxury of Convenience
Not only can you increase the number of people who buy at your store by not being cash only, but you can also consider opening an online store to reach an even wider audience. According to EuroITGroup, online shopping went up by 45% last year. Statistics from BigCommerce also reveal that 51% of Americans prefer shopping online, which makes online shopping just as popular now as purchasing from a physical store. Providing your customers with an easy way to acquire your products, proper security, and a good return policy, will make them feel safe and welcome.
The Benefits of an Online Store
An online store allows your business to reach customers who may not be able to visit your physical location. Additionally, customers appreciate the convenience of being able to purchase products from your online store at any time.
Some benefits of an online store for your business include:
– Increased sales and revenue
– Ability to reach broader audiences
– Reduced overhead costs
– Increased brand awareness
Don’t Isolate Your Customers
By offering alternative payment options, your business can avoid isolating any potential customers. You want to give your customers as many options as possible, and payment preferences are an important factor to consider. By expanding your payment options beyond just cash, your business can cater to consumer preferences and increase the likelihood of a successful sale.
In conclusion, there are many reasons why your business should start accepting more than just cash payments. By doing so, you can better cater to the preferences of your customers and potentially increase sales and revenue. Don’t isolate any potential customers – instead, broaden your business horizons and keep them coming back!
