A cashless society: what does this mean for the retail sector?

 

With the increase in usage of digital services, we might soon live in a cashless society. Indeed, more and more people are ditching notes and coins to use credit cards and contactless payment solutions. What does this mean for the retail sector?

Whether consumers are shopping in-store or online, the preference for cashless methods to checkout is becoming more evident. This is because they are easier and faster than traditional options. For instance, you just have to tap your card on the card reader to complete a payment, which makes the shopping process quite straightforward. This is because you do not have to make sure that you have the correct amount or to count the change to ensure that the transaction is alright. Just wave your card or smartphone in front of the machine and in about 30 seconds, the process is over! Moreover, the safety aspect is another feature motivating shoppers to use these digital services. Thanks to anti-fraud technology, they are considered to be more secure.

Studies have shown that contactless payment methods are becoming increasingly popular. For instance, in the UK up to 34% of debit card transactions and 43% of credit card settlements are cashless. This shows a clear change occurring in the finance and retail sector.

Photo credit: geralt from Pixabay

Cashless payments are on the rise in shops as well