With the rapid rise of digital payment methods, businesses and consumers are left pondering the future of cash in our society. The cash vs. card debate rages on, with proponents of both sides adding their perspectives to the discussion.
When we emerged from the 2020 pandemic, a resurgence of cash occurred as public health fears were allayed.
However, more recent data suggests the cash comeback has waned, especially as more Gen Zers open their first bank accounts and ditch their physical wallets for the mobile equivalent.
Is providing more payment options the key to success for businesses?
Yes. Our research with Retail Economics found people aged between 25 and 35 are spending six hours per week searching for the best deals, amid continued pressures on personal finances.
As customer loyalty across all age groups becomes harder to acquire, businesses need to get on top of increasing card usage to get ahead.
It’s imperative that businesses provide a diverse range of payment options. It’s no secret that customers nowadays expect the very best, which means catering to a varying range of wants and needs.
From BNPL to QR codes, as well as Apple Pay, Google Pay and prepaid cards, offering customers the choice in a sea of seemingly endless options can give your business a competitive edge.
By upgrading PMS and POS systems capabilities to offer more choices, business intelligence can be enhanced.
These new data systems securely aggregate transactions and consumer insights, and, in turn, facilitate effective personalisation of the customer journey.
Customers are thus offered deals, discounts and replacements for products that are aligned with their preferences, and companies are rewarded with customers’ loyalty.
The demand for card payments highlights the need for merchants to invest in new and improved tech capabilities.
Embracing payment optionality will only lead to good things: a personalised customer experience, a seamless purchasing journey, and greater success for you as a business in the long run.
Can you see digital payments continue its exponential rise?
Digital payments offer a new way to pay, and the UK is on board—in recent years, reports have predicted that just 7% of purchases will be made with cash by 2024.
And contactless is fast becoming the preferred method for a whole new generation of customers, with Gen Z proving to be the biggest users of these payments, especially when it comes to digital wallets.
While cash still has its place for some customers and smaller retailers in particular, in today’s fast-paced world, offering a plurality of payment options and getting to grips with digital is essential; if you don’t, you’ll be left behind.
How can FreedomPay help businesses expand their payments options?
Finding success in a new era of payments can only be achieved by partnering with a platform that can help businesses unleash the power of pay and provide the kind of hyper-personalised purchasing experience that customers need – one that utilises the latest technologies such as tokenisation and biometric authentication, as well as adapting existing payment infrastructure, both in-store and online.
Payment trends are turning firmly towards digital, and so should you if you want to stay on top and drive loyalty among the UK’s youngest spenders.
The very speed at which the payments landscape is evolving makes this all the more important.
A single ‘open’, fully agnostic, and flexible payment platform will enable you to go above and beyond in delivering a top-tier payments experience and ensure your customers keep coming back.
With the UK on the brink of a cashless society, businesses should be ready to embrace the card revolution—or prepare to lose out.
Please also take a look at our upcoming virtual event, FinTech LIVE London, coming on 8-9 November 2023.
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