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Mobile payments are driving the cashless revolution
N ew research conducted by YouLend – an embedded finance provider – and Dojo – a payment service provider – has revealed a significant trend when it comes to the way businesses are operating ; they are ditching cash payments .
In fact , only 5 % of businesses in the UK only accept cash today , according to the data , published in a new whitepaper : Less Cash , More Possibility .
The research indicates that the primary driver is a proliferation of mobile payments . Already , almost half ( 48 %) of businesses have adopted digital payment methods – with female-owned businesses taking the lead , at a 51 % adoption rate , relative to 42 % for maleowned businesses .
This is largely driven by today ’ s digitalfirst society , where mobile devices have become a one-stop-shop for daily admin for consumers – particularly postpandemic when national lockdowns forced people to spend more time inside their homes .
But as well as tapping into digital-native target demographics , there are wider benefits for businesses to going cashless – including improving cash flow .
“ This research shows that both business owners and consumers are embracing new payment methods ,” said Jon Knott , Head of Customer Insight at Dojo . “ What we hear from our over 40,000 customers across the UK is that accepting card and digital wallet payments as part of their payment mix gives them unique benefits , including speed , security and reconciliation , giving them time back to run their business . To lean into the shift shown in this research , business owners should be thinking about providing the right mix of payments based on their customers ’ needs .”
Good cash flow is key for the health of any business , especially in today ’ s challenging economic climate . And businesses , regardless of payment method acceptance , rightly cite improving cash flow as critical . With 42 % of businesses stating that card acceptance improves their cash flow and 69 % stating that next day payments help with cash flow and business management , it is clear the move to cashless payments is enabling businesses to take back control of their cash flow .
“ SMEs today are being hit from all angles ,” added Jakob Pethick , CCO , YouLend . “ In addition to battling inflation and supply chain disruption , they also face exclusion from traditional finance providers because of outdated approaches to risk assessment . SMEs generate a crucial part of the UK ’ s GDP – but to thrive , managing their cash flow is essential .
“ As this adoption of cashless payments increases , we expect to see more trust and social proofing , leading to a compounded growth in these newer payment solutions to suit an even wider pool of businesses .” �
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