Entrepreneurs can benefit from fostering cashless payments. Image: iStock
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?
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.
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.
ALSO READ: South Africans warned against picking up money amid wave of CIT heists
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’
Mushwana gave The Citizen a glimpse into the future of digital payments, sharing insights on trends to watch out for.
“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
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