High Streets Initiative · 14 July 2017

Would you take your business cashless for $10, 000?

Woman paying with her mobile phone for her breakfast in a coffee Shop.
British consumers are now more likely to favourcashless payments
With UK high street shoppers now more likely to pay with a card or smart phone than in cash, could a lump sum payment convince you to give up coins and notes for good?

A new Visa initiative is tempting small business owners in the United States to do just that.

In a push to encourage cashless transactions, the global payment company’s Cashless Challenge? will award a select 50 US-based small food businesses between $10, 000 and $500, 000 who commit to exclusively accepting card and digital payments.

at Visa, we believe you can be everywhere you want to be, and that it should be easy to pay and be paid in more ways than ever whether it’s a phone, card, wearable or other device, saidjack Forestell, head of global merchant solutions atvisa Inc.

We want to hear your views on the challenges facing UK high street retailers, so please take two minutes to complete our High Streets Initiative survey and make a difference.

with 70 per cent of the world or more than five billion people connected via mobile device by 2020, we have an incredible opportunity to educate merchants and consumers alike on the effectiveness of going cashless.

Visa claimed its research demonstrated in New York City alone, business owners could generate an additional $6.8bn in revenue by going cashless, and save over 186m hours in labour. The annual cost saving from digital payments was suggested to be worth $5bn for New York founders.

to Visa, a cashless culture means convenience, security and ease of use. That translates to freedom for consumers and merchants alike, Forestell added.

The shift to a cashless high street in Britain already looks to be underway. This week, the British Retail Consortium (BRC) announced that debit card payments accounted for over 50 per cent of all transactions in 2016, overtaking cash for the first time.

Greater use of contactless played a significant part. An increased transaction ceiling of 30, up from 20 since late 2015, played into the hands of shoppers, who also opted for contactless on low value payments.

Between 2013 and 2016, the average transaction value made by card fell from 30.53 to 25.40, with customers clearly responding to the convenience of one-touch payments.


 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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