How Going Cashless Will Help Your Home Improvement Business

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Americans still use cash sometimes for in-person transactions. But the number of people with paper money in their wallets is dropping.

Almost 50% of Americans do not make cash purchases in a typical week. Also, 63.9% expect a cashless economy in the future.

Starting a cashless business model now might help you prepare for the future. But the benefits of this switch go beyond embracing the trend of debit cards and digital wallets.

For instance, a cashless business can enhance security and enable automation. These benefits can be useful for small service businesses like home improvement companies.

In this article, we will look closer at the switch to cashless transactions. You’ll learn about the advantages of making your home improvement company cashless.

We’ll explore digital payment options and how they can improve your customers’ experience.

Finally, you’ll get tips to start your transition to a cashless business today.

The Shift Toward Cashless Transactions in the Business World

A cashless business does not take physical currency as payment. You can still accept checks, credit or debit cards, and other forms of digital payment.

You might wonder why more and more are opting for a cashless model. There are several reasons for this trend. Here is what’s driving the shift to cashless transactions in the business world:

New technology: New payment methods make it easier to go cashless. For instance, contactless payments and mobile wallets make transactions more secure and convenient. These tools also make payment processing much faster.
Customer preferences: A majority of consumers do not use cash or only use it sometimes. They prefer the convenience of cards or mobile wallets. Businesses respond to this preference by offering more cashless payment options.
Security: Cash transactions bring a risk of theft, fraud, and counting mistakes. Companies can limit their cash risks by switching to digital payment options.
Hygiene: The COVID-19 pandemic brought hygiene to the forefront. Customers and staff need to physically exchange cash. Contactless payments with cards or mobile wallets do not require physical exchanges. They are a much more hygienic option.
Unified payment solutions: Cashless payments allow businesses to unify online and in-person payments. They can process all transactions digitally. Then, they can send payment information from each source to a central database.

The cashless revolution is impacting the retail and food service industries. It is also popular in service industries as companies seek simpler payment options.

FROM ONE OF OUR PARTNERS: The Future of Online Payments: What You Need to Know

Benefits of Going Cashless for Home Improvement Businesses

Can going cashless positively impact your home improvement business?

Yes! The same benefits that retailers enjoy also apply to home improvement businesses. The security and automation of digital payments are especially attractive to small businesses.

Here are six benefits that your home improvement business can enjoy by opting to go cashless:

Streamlined Payment Processing

Card or app payments get processed quickly. It may take several days before the money goes into your bank account. However, the authorization process only takes a few seconds. Once authorized, you do not have to take any more steps. The process happens automatically with no additional input from you.

Yes, you can count cash instantly, but it takes time to deposit it. You have to put it in the bank manually, spending time and fuel on the trip. Meanwhile, you have to keep the money secure and organized until you can deposit it.

Better Risk Management

Cash is untraceable. If it’s stolen, you won’t be able to see where the money went. Thieves often target businesses that accept cash for this reason. Employees may also sometimes skim small amounts from the cash payment.

Even if you trust your employees or contractors, it is risky to manage cash until it gets deposited.

Cashless payments limit this risk. There is a record of exactly how much was paid. Plus, the money gets deposited automatically without you having to secure the cash.

Your employees and contractors will appreciate this as well. They won’t have the stress of managing cash, and they won’t have to worry about being targeted by thieves.

Reduced Wait Times for You and Your Customers

As we already pointed out, cashless payments happen quickly. This is not only beneficial for you but for your customers too. They don’t have to wait for their check to clear or for you to deposit their cash. The transaction happens in seconds. Once it’s done, they don’t have to think about it anymore.

Modernized Business Operations to Remain Competitive

Modernize your business operations by offering a range of digital payment options. Your cashless business can accept credit, debit, and mobile wallets. You might also take digital wallets, contactless cards, and in-person payments.

These options can help you stand out from competitors. This is especially true if they haven’t embraced the full range of digital payments yet. Customers may want to work with you because you accept a certain payment method.

Automated Record-Keeping

Cashless transactions leave a digital paper trail. You can check your transaction records at any time to confirm payment or assess daily totals.

With the right choice of software, you can integrate payment and bookkeeping platforms. You can send transaction data directly to your accounting tools. This will save a lot of time on bookkeeping, tax preparation, and report generation. You will save hours each week by not having to manually record transactions.

Cost Reduction and Time Saving

Payment processing does incur fees. However, these may be less than the costs of managing cash. You need to account for the employee or contractor hours counting and managing cash. Also, consider the time and fuel to physically take the money to the bank. Finally, count the long-term cost of counting errors, theft, or misplaced bills.

Cashless payments do not come with these unseen expenses. And you don’t have to spend time or pay employees extra to manage the cash.

FROM ONE OF OUR PARTNERS: The Most Popular Mobile Payment Methods for Business Owners

Enhancing Customer Experience with Cashless Payments

Digital payment options can reduce wait times for customers. The full benefits go well beyond faster processing times. There are many other ways that cashless payments improve the customer experience. Here are six steps you can take to ensure your customers appreciate your cashless model:

Provide Multiple Payment Options

A cashless business model can be effective if you offer multiple payment options. For instance, you can have a payment terminal for credit and debit cards. And you can offer contactless payments for near-field communication (NFC) cards and mobile wallets. Digital wallets, ACH transfers, and online payment options can be on your list of options too.

Customers can choose the payment method they are most comfortable with.

Ensure Fraud Protection

Online and in-person payment systems offer extra protection. They encrypt payment information and often have fraud protection features. This gives customers peace of mind when making payments. Also, since there is a digital record of the payment, they can see payment details.

Send User-Friendly Invoices

As a home improvement contractor, you likely use invoices to bill customers. With a good payment system, you can send electronic invoices for customers to pay online. They can use digital wallets like PayPal or a debit card to fill the invoice.

The merging of billing and payment processing brings an extra level of convenience. They do not have to look for paper invoices to figure out the amount and then decide how to make the payment. Receiving the digital invoice and making the payment can be a single interaction.

Allow Scheduled Payments

An online payment platform may also allow them to schedule a payment at any time before the due date. This is a level of convenience they won’t get with paper checks or cash. They can arrange the payment as soon as they get the invoice, but the money won’t be drawn from their account until the date they specify.

Give Customers Payment Flexibility

Cashless options allow for flexible payment. For instance, you can let customers pay online in installments. Or you can permit them to make partial payments with a debit card and cover the balance with credit. Good invoicing software can help you automatically update the balance with each payment. This means offering partial payments won’t add more administrative work for you.

FROM ONE OF OUR PARTNERS: Why Your Small Business Should Accept Mobile Payments

Top Takeaway Tips for Going Cashless as a Home Improvement Business

You do not have to go cashless all at once. You can begin with some simple steps to set the stage for a complete cashless transformation. Here are four things you can do today to start the process:

Look at your payment records. Find out how many customers use cash. This information will help you plan the next steps in phasing out cash.
Talk to customers. Ask your customers what payment methods they prefer. Find out what alternatives those who use paper money would consider. This step ensures you consider clients who still want to use cash.
Research fees. One of the biggest drawbacks of cashless payments is processing fees. Find out how much these fees are for your chosen payment methods. This step will help you plan for the cost of going cashless.
Consider integrations. Cashless payments can automate accounting and reporting. Find out which payment platforms can connect to your current accounting software. Or seek demos of platforms that offer built-in record-keeping features.

These tips can help you prepare for the next steps toward a cashless business.