Cash use has been trending more and more over the past two years, but 2020 was the year that changed—drastically. So, for businesses to stay current, they need to go mobile.
Multichannel POS systems—including mobile payments—is where the market is headed as consumers spend more time on their phones and less time handling cash. According to the FinancesOnline report, “73 percent of consumers use less cash than in the past,” and that number will only grow along with digital payment innovation.
According to a recent study by Merchant Machine, 64 percent of smartphone owners use mobile payment options like Apple Pay and Alipay. China leads the way in mobile wallet usage, with 47 percent of smartphone owners capitalizing on the next-gen technology.
But don’t trash your cash register just yet. In some cities, like New York City, it’s actually illegal not to accept cash. A bill was passed earlier this year that prevents NYC businesses from rejecting cash.
In an interview with the New York Times, New York Councilman Ritchie Torres, the bill’s lead sponsor, said, “Consumers should have the right to choose if they want to pay in cash or not.” Although going cashless could have some positive consequences, like cutting down on minting costs and increasing transactions per hour for merchants, the bill can be discriminatory against those who largely rely on cash to make everyday purchases. “We are reining in the excesses of the digital economy,” said Torres.
A digital-first approach serves businesses across all industries and sectors well in the coming increasingly more cashless era. Businesses can bridge the gap between physical cash and digital payments by switching to hardware that speaks to both. Installing an mPOS system might be easier than you think, and a simple cash drawer can complement a POS system.
We might never go completely cashless, but the trends are clear: Digital payments are the new cash. And POS systems are the new cash register.