Given recent events such as the Covid-19 pandemic, it's only natural that businesses are eager to move away from cash transactions and go completely digital. A third of SMEs are now in a better position than they were before the lockdown, with many businesses keeping the fluidity of cashless transactions post-restriction going forward.

As more companies offer incentives to customers for paying via card or mobile, the number of brick-and-mortar stores that maintain cash as a payment option is getting smaller and smaller. As this trend towards cashless payment solutions grows, we think it's important that businesses are aware of the options available to them. If you're yet to make the jump to cashless payments, read on to find out how you can start.

What is a cashless payment?

What is a cashless payment system, and how does it work? A cashless payment is a digital transaction that doesn’t involve the use of physical cash. There are several different types of cashless payments, including:

• Credit and debit cards
• Mobile payments
• Digital currencies

The convenience of cashless payments has revolutionised the way we shop. It is now easier than ever before to make purchases, both online and in person.

What are the advantages of cashless payments?

There are several reasons why you might want to consider moving to cashless payment solutions, including:

• Cashless payments go directly to your business bank account. This makes cashflow much easier.
• Cash cannot be stolen from your premises, as it is not in physical form.
• Doing business digitally lessens financial crime. Offences such as fraud are difficult due to the paper trail that electronic transactions can leave.
• Moving money between countries is quick and easy. Exchanging currency isn't necessary either, as cashless payments let you spend regardless of your location.
• You can save money on storing and depositing physical cash.

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What are the disadvantages of cashless payments?

Although there are definite benefits to cashless payment, there are a few things you might want to consider before you commit to a cashless system:

• When managing your funds, it's important that security is tight. Without proper protection, hackers can gain access to bank accounts or sensitive information.
• Variables such as power outages can bring down your system, which can bring business to a halt.
• Processing payments can come with a variety of fees to deal with. You may end up paying a lot of money if you go with the wrong provider.
• Because transactions are electronic, there is less privacy. For some types of clients, this can be an issue.

How can you optimise cash flow with cashless payments?

There are plenty of ways to maximise the cash flow in your business. Things such as working out better deals with suppliers and improving accounting systems can all help.

You can also optimise your cash flow for both B2C and B2B in different ways. With regular customers, you can offer discounts or loyalty rewards to customers who pay with cashless methods. Encourage business customers by offering payment terms that are more favourable i.e. a 2% discount for payments made within 10 days of receipt of invoice.

When picking a cashless system, it's important that you check for a few things before making your choice:

• Great customer reviews - you can find out about any hidden fees or problems that you might not have otherwise considered.
• Simple pricing - if possible, opt for a simple, flat-rate fee.
• Being able to track sales easily in real-time - this makes it much easier to keep on top of your finances.
• Having a robust dashboard to send transfers from - a good interface can save a surprising amount of time and energy.
• Easy-to-use, on-the-fly bookkeeping - avoid any nasty surprises come tax season.
• Being able to accept a range of different payments from customers - customers love having the flexibility to choose how they pay.
• Payment automation - set and forget payments ensure you never miss a payment date.
• Quick clearing times - BACS payments usually take a few days to clear.

Looking for a comprehensive cashless payment solution? iwocaPay does all of the above - and more.

iwocaPay can help

With iwocaPay, taking cashless payments is a simple and rewarding experience. Receive instant payments for free, with no charges to either you or your customers. If they need a little more time to get funds together, you can provide flexible payment terms that work for both of you.

You don't have to worry about chasing up customers either - we'll pay you in full as soon as your customer has checked out. Our Pay Now feature even makes it easy for your customers to make payments without their card, which is perfect for the odd occasion they might leave it at home.

iwocaPay makes doing business cashlessly fast and effective. Get paid on your terms, every time.

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