Electronic payments better than cash?
Electronic payments are a seamless, fast and simple way for making and accepting payments. The ease of use and the widespread opportunities tied to electronic payments are among the most appreciated features. In this article, we are focusing on the three main advantages that electronic payments have over cash to both merchants and consumers.
As surprising as it may sound, cash payments are not free. On the contrary, they are rather expensive. In fact, the costs related to cash handling such as distribution, deposit, counting and transporting are higher than those for electronic payments. Cash payments require significantly more manual work, infrastructure and logistics to make these possible, whereas electronic payments don’t.
Let’s do a simple simulation of the transaction cost between an electronic payment with a debit card and a payment with cash. For a payment of €20 with a debit card, the transaction cost is approximately €0,13. If the customer pays the same amount with cash, the transaction cost can be up to approximately €0,30, or three times as much (source: UNIZO; April 2022).
The cost difference between both payment methods is even more stark when thinking of longer distance transactions. Sending cash even only a few miles away implies some cost and organizational hassle. This could rapidly become daunting. For electronic payments on the other hand, the same pricing applies for payments to both your neighbor and someone living on the other side of the world. It can be done quickly, inexpensively and with ease.
Also, the great variety of payment solutions helps to bring down the costs related to electronic transactions. The range of possibilities in terms of pricing model (customized Classic offer or a flexible solution), payment method (with card or mobile) or type of terminal (fixed, mobile or cash register linked) are tailored to the situation of each merchant’s business. This way, we make sure that you only pay for what you need and use.
Electronic payments are considered much safer than cash, because of the multiple layered security measures such as encryption, tokenization, etc.. Whether you are making a transaction with your bank card or with your mobile phone or smartwatch, there is nearly always a stringent verification process such as a PIN code or biometrics data request. Something that is completely missing when using cash.
Also, the risk of loss or theft is much lower compared to cash stored in a cash register or bag. Even though your electronic payment means can be stolen as well, the possible damage caused remains more limited. Cash stolen from your wallet is gone, usually forever. A lost or stolen bank card or smart device however, can be blocked quite instantly.
In addition to these security measures, the feeling of safety should also be taken into consideration. Would you feel comfortable with €100 cash in your pocket? Yet nowadays every purchase quickly reaches this amount. With an electronic payment method, consumers are less limited in their spending.
Furthermore, electronic payments have proven to be more secure than cash from a health perspective due to the lack of physical contact.
After pricing and security, comfort is also a major concern of consumers. Unlike cash money, electronic payments are more convenient for many reasons. First of all, payments can be made and accepted in no time. Your clients don’t need to find a bank office or to queue up at a cash distributor. They don’t have any constraint of time or location, which provides a very appreciated sense of freedom. This is in turn beneficial to your business.
Also, you can easily track your transactions at the end of the day through our daily report sent by email and accessible on our online platform. These transaction reports with pinpoint accuracy have proven to be very useful for accounting purposes.
Electronic payments allow for more control and peace of mind for consumers too. They can check their expenses within seconds on their payment app.
Questions about electronic payment solutions?