Mobile payments will affect cash use
July 23, 2013

Small and medium-sized enterprises with integrated payment systems that accept credit card payments at the point of sale may want to start investing in the latest purchasing platform. According to a new report, cash and coins will be replaced by mobile payments in the next five years as more consumers utilize their smartphone at the checkout. Purchases made by shoppers swiping, tapping or scanning a product from an on-the-go device are already rising across the country. The transaction platform may soon become the purchasing option of choice for consumers. 

Mobile payments will affect cash use
According to IT Business, a Canadian news source, a recent report from market analyst firm Technology Strategies International compiled findings from four surveys asking a total of 4,000 consumers about their payment preferences. The report found digital wallets and other types of on-the-go purchasing platforms will replace cash and coins in the near future.

TSI examined past and current use of paper money and coins in Canada as well as the growth of mobile payments. With the number of consumers reaching for their smartphone at the point of sale increasing, the use of cash will give way to swiping plastic and making digital payments.

Business News Daily reported mobile payments in Canada tripled between 2011 and 2013 and will only continue rising as awareness of the transaction method spreads. With previous reports from eMarketer forecasting the purchasing platform will surpass $1 billion this year, Business News Daily suggested cash and coin use will be eclipsed by mobile payments. 

TSI's report concluded that increased consumer use of plastic at the point of sale in recent years has been a preview of what is to come for businesses. While some customers may still choose to utilize traditional purchasing methods, like paper money or coins, concerns over mobile payment security are decreasing and more consumers are investing in smartphones.

SMEs should consider using in electronic purchasing platforms and a portable credit card reader to accept all payment forms. With cash use decreasing and more consumers asking to use their digital wallet or the retailer's mobile payment option, providing multiple transaction methods is a smart idea for SMEs. Most forecasts state on-the-go payments are about the explode in the U.S., and not investing in the purchasing solution can result in sales opportunity losses for smaller retailers. 

Nexus: G-WEBCD2