Why online payment is better than cash?
8 minute(s) read
Published on: Dec 15, 2021
Updated on: Dec 27, 2021
Do you remember the last time you used cash to buy something? We have to say that since the advent of mobile cash payment applications and software or online payment gateways, the use of cash for daily payments has decreased significantly. In fact, the use of mobile payment applications will be increased by 2022 up to 28% and so many people may start using credit cards instead of cash. In this regard, it is better to think about the gradual removal of cash from your business now. This may seem a little difficult at first. But it has many benefits that you may not be aware of them now and will gradually realize. Let's look at the reasons why you should eliminate cash payments from your business:
The reasons of removing cash payments
- Improves payment efficiency
Consumers around the world today do not like to waste their time in long-standing store payment queues due to their busy schedules. That's why these days we are increasingly faced with ads for payment applications and mobile wallets. These applications eliminate the need for consumers to stand in long queues for store payments. According to statistics, 43% of Internet users in the United States prefer to use payments applications instead of standing in payment queues.
- It makes the accounting process easier for you
When it comes to cash in your business, you literally have to calculate every single cent, and that can be a bit frustrating, especially on days when you are facing a cash deficit and can not find the reason. But with mobile and digital payments, every transaction is automatically tracked and recorded. This means less time for error you spend and less time for manual control of payments and transactions. You also need less daily bank visits to transfer cash or other similar activities.
- Reduce the risk of theft
It is really dangerous and risk to carry cash with you when you go out. In fact, you should not only be concerned about the theft of your money by accidental thieves, but you should also be concerned about the dangers that threaten your employees, especially your cashier. In the United States, the owner of a café in Baltimore recently announced that he had been robbed five times in four months; and finally he has decided to eliminate cash payments altogether. Of course, he initially had concerns about loyal customers who did not have credit cards, but he solved this problem by assigning gift cards to such customers.
In general, by removing cash from your business, you not only help increase your financial security, but you can also ensure the safety and health of your employees. Non-cash payment may not be suitable for all businesses. But if you have loyal customers who have a good understanding of modern and digital technologies, using a non-cash payment system has many benefits for you and protects you from the risks that cash storage may make for you.
Why do we prefer to buy in installments but not in cash?
If you need a product, you do not have to wait for all the purchase amount to be collected, you can take credit or loan all or part of the total amount and repay it in installments. This is especially important for essential goods, such as a situation that the refrigerator breaks down and cannot be repaired, so you cannot wait several months to buy a new refrigerator! You have to buy a new refrigerator as soon as possible, even with installments and credit! The amount of installments is reasonable and you can choose the amount of each installment according to your financial ability.
Online payments can even be parted to some installments, but when you are paying in cash you probably have to pay all amount of the money together and it seems a bit hard to the people who need to buy many goods and products at the same time.
Advantages and disadvantages of online payments
- Multiple bank cards
Surely you have several accounts and cards in different banks, most of which you do not use at all. Sometimes we have to open an account and receive a bank card to perform simple banking services. Or companies and organizations force their employees to open a bank account to receive salaries and benefits. Having a number of bank cards sometimes makes it difficult to manage accounts and causes confusion when you are shopping.
- Security risks
Unfortunately, it has low security to enter security codes and the information of cards and accounts every time when you want to buy something online. And if you don't pay enough attention to the security of your information, bank card information may be revealed at any time.
- Unsuccessful transactions
Unsuccessful transactions are another problem of buying using bank cards. Sometimes it takes several days to get refund on failed transactions.
- cash purchases are time-consuming
When you choose to pay cash instead of other payments, it is needed to receive the goods in person and if you are not able of doing them, you may need to ask someone to do it. Also if you have not paid the whole amount of money, you will need to spend your time in order to pay people's money.
Why credit payments are the best option?
Each time you pay by card, in addition to the fact that you may face problems such as disconnection of the bank system, forgetting the bank card information, etc; it will be needed to spend a time to enter your bank account information. But after all the predictable problems that may happen to you, it is still better to pay online or using credit cards rather than cash.
Why some people still prefer to pay by cash?
Here I will tell you a story about a billionaire who prefers to use cash. His name is Warren Buffett. If Warren Buffett enters a store or restaurant, he always does his payments by cash purchases. "I have an express card that I got in 1964," says Buffett, who has a fortune of more than $ 88 billion. "But I count 98% of my purchases in cash. If I am in a restaurant, I always pay cash. " In fact, he says he always has about $ 400 with him and spends it. But why? Is it because he is afraid of credit cards? Does he have security concerns?
In fact, the reason is that, in terms of context, paying cash is "easier" to him. However most of the people are thinking in other way. Every year the number of people who carry cash with them is decreasing and according to the researches of American Banks in 2017 among every 2000 people, less than the half of them preferred to pay by cash and most of them were fans of online payments and purchases. Almost 20 years ago, cash meant everything to the people but nowadays most of the people even do not have a penny in cash and cash is slowly disappearing.
If you run small businesses in 2020, none of this matters and you will have to make money online. Why? Because you want to sell your goods and the last thing you would want, is to keep the customer away from yourself. You have to accept that the one who choose how to pay is your customer. And you need to respect them.
We may have seen some businesses that have limitations in payments; some of them cannot accept cash and other are not able to sell their products online, no matter which limitation you have, if you are among these two groups you will lose some of your customers. But note that if you have a business without online payments, it would not survived.
In this age, you cannot say who is right or what is right. You just have to be more easygoing with your customers and always helping them and preparing a good and trustable condition for them in orderto do their payments. Today's consumers all have a preference for how they want to pay for their purchase. Some, like Buffett, prefer to use cash. Others like credit cards. And note that mobile payments are also becoming more popular day by day.DotNek Android development services