Electronic payment systems trump cash in today's economy
September 30, 2013

Less consumers are relying on cash to pay for products and services as more businesses around the world make concerted efforts to accept credit card payments. In the past, companies in all industries depended heavily on traditional transaction methods to exchange goods with consumers. A report published by Javelin Strategy and Research, a payments technology analysis firm, said cash was until recently the primary point of sale payment option in most industries. However, as mobile technology and electronic check processing services continue to evolve and adapt to the retail environment, many industry experts anticipate integrated payment systems have already paved the way for rapid change in the way companies make POS transactions.

There are several reasons why the use of cash is no longer as prevalent as it was before these most recent advancements in credit card processing technology. Not only is it easier and safer for consumers to be able to make purchases without carrying around large amounts of money, electronic payment systems create unique benefits on the business end, as well.

Here is a closer look at some of the reasons why more companies and consumers around the world are starting to seriously consider payment integration as a better option.

Benefits to businesses
Companies everywhere are starting to invest heavily in services that allow them to process electronic transactions through a variety of channels. According to the U.S. Small Business Administration, companies that only accept cash not only spend more time managing their finances, they are often prone to additional security risks. Credit card processing technology, on the other hand, allows for more robust analytics and information regarding the amount of money received from each sale. These services also make it much harder for money to be lost or stolen.

Benefits to consumers
Perhaps an even more important reason businesses are making the switch to electronic payment systems is that a large majority of customers now prefer to use cash alternatives when interacting with brands. Houston Chronicle said many shoppers enjoy having the ability to pay electronically because it eliminates the need to make repeated trips to the bank to withdraw cash. Using an integrated payment system allows businesses to give more options to their customers. Companies that accept credit card payments in stores as well as through e-commerce portals can increase shopper satisfaction by letting people browse inventory and make purchases from the convenience of their homes.

Relying only on cash significantly limits the amount of revenue a business is able to receive. Offering a variety of alternative transaction options is an effective way to ensure profitability in the long run.

Nexus: G-WEBCD2