Perks of going cashless: Why every entrepreneur should take digital payments

When it comes to spending, cash might not always be king – and many South Africans agree digital payments is the way to go.

There’s been a growing preference for cashless payment in recent years, which has been further accelerated by the Covid-19 pandemic when cash was considered a health hazard.

Furthermore, the rise in cash-in-transit heists in the past year has caused most entrepreneurs to go cashless, while many continue to ponder on the idea.

ALSO READ: CIT heists: Is going cashless a viable solution?

‘Cashless lifestyle’

Despite the convenience and reduced security risks of cashless transactions, some still prefer cold hard cash – so is fostering digital payments really worth it?

Nedbank Executive of Emerging Innovation and Payments, Chipo Mushwana agreed absolutely.

Speaking to The Citizen, Mushwana said going cashless had worthwhile benefits for consumers and entrepreneurs alike.

“QR code payments and other digital payment options not only provide convenience and safety for customers but also open up opportunities for increased sales, cost savings, better data insights,” he said.

Mushwana said consumers were increasingly turning to digital payment options, adding the emergence of digital payment methods such as contactless bank cards and mobile wallets had made it easier to embrace a “cashless lifestyle”.

“As a result , business that offer cashless payment options are more likely to attract and satisfy a large customer base,” he said.

Reduced risk

Keeping large sums of cash on business premises makes entrepreneurs vulnerable to robberies – having less cash transactions can help mitigate the security risk.

“Digital payments eliminate expenses such as additional costs of handling cash, banking fees, and the risk of theft or loss by streamlining the payment process, saving time and reducing operational complexities,” Mushwana explained.

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Data insights and analytics

As an entrepreneur, it’s important to know your customers’ needs and preferences to provide tailored offerings.

Using digital payment platforms makes it easier to keep track of customer preferences by providing valuable data insights and analytics on customer behavior and purchasing patterns.

“Entrepreneurs can leverage this data to gain a deeper understanding of their customers, optimise inventory management, and tailor sales and marketing strategies for better business decision-making,” he said.

ALSO READ: Why cashless is ‘the way to go’

The future of digital payments

Mushwana gave The Citizen a glimpse into the future of digital payments, sharing insights on trends to watch out for.

• Mobile Payments: The use of mobile devices for payments will continue to gain popularity. “With the proliferation of smartphones and wearable devices, consumers will rely more on mobile payment apps and services.”

• Contactless Payments: Contactless payment methods, like NFC-enabled cards and mobile wallets, will become more prevalent.
• Biometric Authentication: Identity verification measures like fingerprint and facial recognition will become increasingly used to safeguard transactions. “This technology offers convenience and enhanced security, reducing the reliance on passwords or PINs.”
• Internet of Things (IoT) Payments: The interconnection of devices through the IoT presents opportunities for seamless and automated payments. Smart devices, such as connected cars, smart appliances, and wearables will be capable of making payments on behalf of consumers.

“These trends reflect the continued push towards convenience, security, and efficiency in consumer transactions,” Mushwana said.

READ MORE: Payment trends to watch in 2024 and beyond