How Can Small Businesses Adapt To Changes In Credit Card Technology?

How Can Small Businesses Adapt To Changes In Credit Card Technology?

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The trend of using debit and credit cards is only getting stronger. The rise of contactless technology has furthered our journey towards a cashless consumer base, and retailers that are yet to adapt to a cash-free process are quickly getting left behind.

You’ll rarely find a high-street business these days that is cash only, however many smaller enterprises are still yet to adopt the contactless payment form. With contactless payments having overtaken traditional chip and pin transactions well over half a year ago — not to mention continued and significant investment in the development of the technology, it would seem it’s only a matter of time before everyone is on board.

With the industry constantly evolving, more small businesses are adapting to the latest in credit card technology.

The current state of affairs

At of the end of last year, there were still three million businesses in the UK supporting cash transactions alone, absent of any card technology. Many small business owners still retain the belief that remaining cash-only offers the most cost-effective solution for their business, however this is an incorrect mindset that is quickly changing.

The 81 minutes of labour lost a week spent handling cash at the bank, coupled with the 10% increase in revenue generated from card technology, means 3,000 businesses a day are signing up to mobile card readers and optimising their operations. Today’s process to switch to card payments is simple to carry out, and business owners can choose from a range of payment setups to best suit them.

Understanding the business

Despite evidence against it, some business owners will maintain the lack of need for a credit card or contactless system in their business. Most would argue a business risks disillusioning a large part of its potential customer base by staying cash-only but this will impact every business in a different way.

Each business should be considered on an individual basis. An SME owner should consider their transaction volumes, frequencies and average values. If a business enjoys periods of high demand and processes primarily low value (under £30) transactions, then it makes sense to invest in a contactless POS system to meet the changing expectations of its customer base.

If a business traditionally processes higher value, lower frequency transactions, then a contactless system is obviously not as important. Depending on the results of their analysis, business owners can decide on the extent of the payment system overhaul they require.

Key decision makers that understand their business will be able to adapt at the right pace to suit their needs.

Investing in a contactless POS system

Contactless payment systems are more accessible than ever. With prices starting from as little as £19, there’s no real excuse for any small business not to get on board. While owners may query the charge rates on the systems, the 10% average revenue increase from having contactless should more than make up for any extra arrears.

Once a business has invested in a contactless payment system, it’s important to let the customer base know. Utilising in-store adverts and visible branding around the counter should be enough to make customers aware. Although there’s not too much to learn, training staff to both advertise and understand the technology is also important.

The credit card remains both a staple of UK consumers’ spending and financial organisation. With technology centred around card transactions developing even further, it’s hard to imagine virtually any businesses remaining cash only within the next few years.

While the transition might seem daunting or unnecessary for some smaller operations, the increasing accessibility and affordability of contactless POS systems makes investment into them a whole lot easier.