Cash versus credit: What's the difference?
March 20, 2013

Consumers have long had a variety of payment types at their disposal, including cash, checks, credit, debit and now even mobile wallets. From the outside, it may appear these are all different means to the same end - paying the bill - but in reality, the preferred payment methods of consumers can actually have a huge impact on purchase attempts.

For instance, a study conducted by the Journal of Experimental Psychology found that McDonald's saw the value of average orders jump from $4.50 to $7.00 after beginning to accept credit card payments and debit card payments. Cash can sometimes be a limiting factor - customers can't spend more dollars than they have in their wallets. By offering credit card processing, business can sometimes make more money per customer.

A recent infographic from Merchant Warehouse and Column Five reinforces this notion, adding that order size increases up to 40 percent when merchants begin accepting credit cards for the first time. Additionally, shoppers spend between 12 and 18 percent more when they opt to pay by card instead of cash. While 12 percent more might sound miniscule in the perspective of a single order (particularly when entrepreneurs are making an investment in new hardware), those figures can add up quickly over the course of weeks, months and especially years.

As credit card ownership grows, so too will the importance of accepting plastic
There is a definable, noticeable difference in consumers' buying habits when they choose their preferred payment methods. Today's customers want to pay with credit, and retailers that offer this option can benefit by generating more revenue and boosting order value per sale.

Mobile payment solutions, such as Sage Mobile Payments, empower businesses of any size to accept debit card payments and credit card payments with little hassle. These hardware attachments can be implemented with any smartphone or tablet device and provide companies with a breadth of options in terms of compiling financial reports and managing transaction history.

Nexus: G-WEBCD3