Aiming for a more efficient and safer world, governments and retailers are pushing back on cash money. Although this transformation can result in some temporary inconvenience, some brand-new payment methods are heralding a more transparent world in which transactions will be frictionless. What does this mean for your business?

It is a global trend: consumers are making fewer and fewer cash transactions. Progressive as our country is, the Netherlands are trailblazers in this aspect. In the past year, the Dutch have paid less with cash and more with their debit card. In 2017, the share of cash payments was 41.4%; it had been 45% the year before.

The Rise of a Cashless Society

Cash money is little by little disappearing in Western countries, but also in Russia, China, and Japan. Why is this happening? There are 3 main reasons:

  • Governments are intervening to prevent criminal money flows. For example, the European Central Bank will stop issuing €500 bills. Apparently, it is mostly criminals who use these large denominations.
  • Another factor is the entrepreneur’s fear of being robbed. Many retailers prefer debit card or credit card payments because they want to decrease the amount of money in their cash register. In big Dutch cities, there is even a trend in some museums and bars to not accept cash money at all.
  • The efficiency of new forms of payments is a final reason we are paying less in cash. Contact-free payments and the first generation of payment apps are already widely adopted, while new innovations are looming on the horizon.

New Trends to Watch Out For

What will the future have to bring? The latest developments in payment convenience and security promise a bright future:

  1. Pay with a smile

This is already happening in China. It works like this: you smile at a 3D camera in the KFC, and the amount due is debited from your account via an app.

  1. The biometric payment card

In this instance, the payment is approved by means of your fingerprint. There are pilot projects in Cyprus and in the United States.

  1. Cashless payments

At music festivals, less and less cash is changing hands. The famous festival coins are increasingly traded in for apps. This is advantageous for both consumers and organizers. In some cases, the consumers can easily trade-in their superfluous coins for money. The organizers are saved from much hassle and safety concerns.

Like everything else around us, payment methods are constantly evolving too. To keep ahead of your competition, it is imperative to offer a payment method to your customers that is as frictionless and customer-friendly as possible. You don’t have to come up with great ideas, like pay-with-a-smile, but you certainly should begin to prepare for a world without cash.