Is a cashless society just around the corner? There is certainly some evidence to suggest that this may be the case. In 2020, the number of people withdrawing cash from ATMs has decreased by a whopping 11.6 percent. The problem is, though, that 2.2 million people said they still solely use cash, and 1.3 million people don’t have a bank account. There is certainly a worry that people and businesses in the rural areas of Wales could be at risk of failing to move with the times when it comes to payment methods.
Varied Payment Methods Boosted by Online Industries
Perhaps the only reason why the need to prepare for a cashless future is because of the rise of ecommerce and online services. Cash payments are impossible for internet transactions, so businesses that exist in the ether have had to offer remote options.
Online payment platforms have come about because of this, with the range of options posing different advantages. This has led to payment systems becoming somewhat a matter of preference, so businesses have had to accept a multitude of systems in order to appeal to the highest number of people.
At Mr Green, for example, players can choose between MasterCard, VISA, Skrill, paysafecard, and Neteller. This covers a lot of bases, and caters for a vast number of users. It has also helped the site gain a solid reputation as a trusted site, as these systems are well-known and recognisable.
Other online industries that want to appeal to global audiences also accept a wide range of payment methods. Amazon allows users to purchase items through around eight payment channels, while Netflix and many other entertainment services are known for helping boost the rise of PayPal as an alternative payment platform.
What Can Small Business Owners do?
The influence of varied payment methods on the internet has had a knock-on effect on the offline world as well. Many businesses in Wales have already started the shift to more digital payments in preparation for a potentially cashless future. For example, Holywell in Flintshire opened up to diverse payment systems in 2018 when the technology firm, Square, introduced a number of card readers.
Other small business owners in the quieter towns of the country may want to follow the lead of Holywell. This is because research has found that shoppers are 55 percent more likely to buy from somewhere that they know can take cashless payments. Even the least technologically savvy people will need to either install card readers in store, or opt for online methods via mobile.
The option to scan a QR code on banking apps to transfer money from bank to bank could prove handy in rural locations. Otherwise, it is fairly easy for anyone with an internet-ready device to set up a PayPal account.
Some people may not like it, but it appears that cash could be on the way out in the near future. Getting to grips with cashless payment options now could help small businesses in Wales prepare for this inevitable scenario.
