While the advent of contactless payments is revolutionising the way in which we approach merchant transactions, we contemplate the not so obvious barriers to entry that many SMEs and consumers may face.

There are two essential questions to pose

1 – Can shops and other venues/facilities opt not to accept cash?

2 – What happens to the millions of people and SMEs that are financially excluded?

The traditional hardware costs (point of sale devices) required to accept digital payments are a thing of the past. Making it easy and affordable for ALL merchants – large and small to use their smartphone to accept payments. (WIZZIT Tap2Pay – secure and certified SoftPos solution)

I am constantly drawn to articles and research predicting the demise of cash. One such piece of evidence summarises the situation as follows:

 

https://financialit.net/news/payments/tap-happy-almost-half-transactions-be-contactless-end-2022

  • The use of contactless payments is set to make up 47% of all UK payments between 2021-2022, and will be the most common type of transaction.
  • Contactless payments are up by nearly a third (30%) since the start of the pandemic, when chip & pin payments were still the most popular way to pay.
  • Between 2021 and 2022, cash payments will account for just over one tenth (11%) of all purchases.
  • Forecasts show almost three quarters (72%) of payments will be made by card within the next year.

The article goes on to say;

“Shoppers swapped cash for cards for hygiene reasons, many retailers also stopped accepting cash altogether…”

I have recorded previously that there are two coffee shops that I frequent that have signs “Cash not accepted” and many entities – golf clubs , entertainments centres, Schools etc are cash free.

Mastercard recently announced that the production of magstripe cards (swipe) will cease. Contactless NFC cards will be the norm with simple smart phones becoming the acceptance device of choice of all retailers – large and small ensuring that SMEs are now longer excluded from this digital world.

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