Card vs Cash - The Future of Payments

It's 2021, and the battle of card vs cash continues.

In today's fast-paced world, it's so easy for a customer to just pull out the good 'ole debit or credit card to pay for their purchases. After all, who has the time to get cash, count it, hand it over, AND wait for change anymore? We know that's a bit of exaggeration, but you get the message.

Let's face it; card payments are in. With increased sales and the ability to encourage impulse purchases, the benefits of card payments can be seductive. However, cash payments also boast their own world of gains. 

Here, we're going to discuss the advantages of each within the card vs cash battle to help you decide what's best for your business, and walk you through what the future of payments looks like.

Card vs Cash - The Benefits

The Benefits of Going Cashless

Cards have their heroes, and for good reason. Let's check out the benefits of card payments in the business world:

• Credibility - Businesses who have opened themselves up to reap the rewards of the benefits of card payments are often viewed as more legitimate. Displaying card symbols not only creates a positive image, but also builds a trustworthy relationship with customers.

•  Increased sales - Those who accept card payments often see a rise in sales as consumers are more likely to purchase products. As a matter of fact, the convenience and security can also encourage higher-value purchases.

•  Competition - As a business, you're always competing. If your competitor happens to accept card payments and you don't, you're putting yourself at an undesirable limitation. This also works vice versa; if you accept cards and your business rivals don't, you put yourself at a powerful advantage.

• Growth - The more payment options you offer, the more customers you attract, and the more income you generate. All of the brand awareness you gain from the benefits of card payments leads to one thing - growth.

The Benefits of Cash Payments

Paper has been around since the year 1690, centuries before its contender. While it's becoming more and more apparent that cash is on its way out, for now, it's still clinging on - here's why:

• No fees -  This is especially important for smaller businesses that sell products at a low price. A cash-only business means that you won't need to set up any merchant accounts, or buy or rent processing equipment. When you only accept cash, it simplifies your responsibilities. 

• Instant payment - No waiting for your money to clear. There's a certain beauty in getting paid instantly, and it sits in cash payments. With an only cash system, you don't need to worry about business credit, or if you'll even get paid.

• No chargebacks - Credit card fraud is a persistent concern for companies that accept card payments. However, when you only accept cash, you can save time and money on hefty chargebacks. Chargebacks can sometimes be legitimate, but often, they're dishonest. By limiting your payment options to cash, you'll never need to worry about chargeback fraud.

The Future of Payments

The future of payment systems, and the industry as a whole is dynamic, and constantly stands subject to change.

According to a study carried out by the Business Research Company, the global cards and payments market was valued at $721.9 billion in 2019, growing at a CAGR of 7% since 2015. Many experts state that the market is further expected to grow at 8.5% CAGR, to reach almost $999.3 billion by 2023.

It's true; consumers now leverage digital options rather than cash. With this, card payments will continue to rise. Debit cards are forecast to account for 50% of transactions by 2024, with payment volumes hitting 22.3 billion in 2028.