With the rise of modern technological advancements and consumer demand for convenience, digital payment methods are popular and easy to use. To put this in perspective, according to research cited by PaymentsJournal, $2 trillion in digital payments are projected to occur between 2025 and 2026, with further growth expected.
However, not all customers can or want to forego using cash. Businesses like yours are going cashless in a way that works for all customers, regardless of their payment preference. They’re meeting that demand and cashing in on the benefits of doing so, too, especially for their operations and bottom line.
But what does it mean to go fully digital, that’s fair for all customers? And what is the best way to do it? Keep reading because we’ll explain everything you need to know, including the benefits and challenges. We’ll also provide practical steps about how your business can embrace this digital transformation with Ready Credit’s flexible and inclusive payment solutions, ready to support your transition.
What Does It Mean to Be a Cashless Business?
A cashless business drastically minimizes or eliminates accepting physical currency as a direct payment method. Instead, a cashless business will accept digital payment methods and conduct transactions through any of the following:
- Cash-to-Card® Kiosks
- Debit cards
- Credit cards
- Prepaid debit cards
- Prepaid credit cards
- Digital wallets
- Cryptocurrencies
It’s important to note that going cashless doesn’t necessarily mean “less” or “no money” accepted on your premises. Instead, it means you’re adopting either a cashless-first or fully cashless model. The cashless-first model is the superior option for businesses and customers alike.
Here’s why: While going fully cashless is self-explanatory, most businesses are, instead, accommodating their cash-only customers and/or complying with applicable state or local laws by adopting a cashless-first model. This hybrid approach allows businesses to accommodate cash-only or otherwise unbanked/underbanked customers via cash-to-card® kiosks and other inclusive digital payment options.
Businesses in many customer-facing industries, such as hospitality, amusement parks, and retail establishments, are leading the charge in embracing an equitable cashless transformation — a convenient and inclusive transition that works for all consumers.
Why More Businesses Are Going Cashless?
Research shows that the digital payments market is projected to scale 15.90% annually from 2025 until 2029. But what’s driving this growth? For one, today’s consumers, especially Millennials and Gen Z, want quick and convenient payment options like contactless cards, mobile wallets, and embedded in-app payment experiences. Such digital convenience is easy to use and trackable, giving consumers greater control over their spending.
Not only are businesses giving their customers the payment methods they demand, but from an operational standpoint, going cashless is fiscally responsible. Case in point: Manual cash handling is time-consuming and poses a security threat. By transitioning to a cashless-first model, businesses can still accommodate customers with physical cash, while foregoing manual reconciliation, armored-transport logistics and costs, human–led accounting errors, and even theft.
Running a cashless-first establishment means transactions will be faster, with drastically fewer accounting errors occurring. Plus, it’s a feather in the cap of any business’s ethos in the eyes of consumers (and the public) who value spending either at a tech-forward and eco-conscious establishment.
5 Key Steps on How to Transition to a Cashless Business
Step 1: Evaluate Your Customers, Business Type, and Risk Tolerance
Transitioning to a cashless-first business isn’t a one-size-fits-all process. Instead, you’ll want to consider whether it’s viable for your business and if you’ll likely experience a sufficient ROI by going cashless. Take the following factors into consideration:
- Your business type (e.g., hospitality, retail, QSR, or venue-based, etc.)
- Location (i.e., urban vs. rural area and risk of theft)
- Customer demographics (i.e., younger or older, level of tech-savviness, etc.)
- Number of hours daily spent on cash handling
- Percentage of cash transactions annually
- Annual customer traffic
Step 2: Choose the Right Cashless Payment Systems
Once you’ve determined that going cashless-first is the best move for your business, it’s time to choose the right cashless digital payment systems. Consider opting for any combination of the following:
- Cash-to-Card® Kiosks for cash-only/cash-preferred customers
- POS terminals that accommodate contactless/tap-and-go payments.
- Digital Wallet Solutions
- Wearable payment technologies
Of course, not all cashless payment systems (or a combination of many) will work well for every business. So, factor in the following criteria to determine the best cashless payment system for your company:
- PCI compliance
- Easy integration with little to no downtime
- Comprehensive customer support
- Uptime reliability (in the face of network disruptions, etc.).
Step 3: Train Your Team and Update Internal Workflows
Any time your business makes a major or minor operational change, employee training becomes par for the course. Hopefully, you’ve chosen a digital payment provider with a strong and reliable implementation and onboarding process to make staff training as easy as possible.
Once your digital payment system is in place, bring your team together for comprehensive training that entails:
- Hands-on training to familiarize staff with your new digital payment system.
- Ensure staff can seamlessly and efficiently operate the system.
- Train staff on all possible troubleshooting issues (e.g., failed payments, etc.) to better prepare them for the front of house.
- Create a detailed checklist of what staff should know before you launch your digital payment system.
Step 4: Communicate the Transition to Your Customers
With your staff trained and ready to navigate your new digital payment system, it’s time to announce the transition to your customers.
- Ensure you inform your customers clearly and efficiently by using an omnichannel approach (e.g., using visible signage, emails, website banners, and social posts).
- Tailor your message(s) by focusing on how a cashless premise will mean a more convenient, faster, and safer customer experience for those who prefer to pay with cash.
- Pushback from cash-preferred customers may occur, so be proactive by offering them a list of FAQs that anticipate their concerns.
Step 5: Launch and Monitor
With your staff trained and customers in the know, it’s Launch time – an opportunity to see your new cashless-first digital payment system in action. Keep the following strategies in mind once you hit the ground running:
- Turn Launch Day into a customer appreciation celebration—brand it as “Digital Access Day” or “Smart Payment Week,” decorate with balloons, and engage customers with giveaways, demos, and messaging that highlights your commitment to serving every guest with faster, easier, and more flexible payment options, including cash.
- Monitor your digital payment system throughout the launch (and beyond). For instance, Ready Credit’s digital payment system has built-in reporting/analytical tools, such as transaction volume and processing time, from which you can leverage data.
- Use your data and metrics to measure the impact of your new system and to make data-informed adjustments down the road.
- Disseminate customer surveys to collect feedback about your new payment system.
- Review all feedback and make adjustments as necessary.
Benefits of Going Cashless for Businesses
When companies transition to cash-to-card business transactions and other cashless payment options, they reap a range of benefits. Not only do cashless payment systems eliminate manual cash handling duties and streamline day-to-day operations, but they also drastically reduce accounting errors, and instances of internal and external theft.
A digital payment system in place also means faster and more efficient transactions at the till with low-to-no wait times. As for behind-the-scenes operations, businesses will have access to real-time payment tracking, sales volumes, and other metrics for greater transparency and improved business forecasting.
Challenges of Going Cashless-First—and How to Address Them
Businesses that go fully cashless take a significant risk by excluding cash-only (underbanked or unbanked) or cash-preferred (often elderly or non-tech savvy) customers. All consumers deserve to purchase what they need, no matter their payment preference. That’s where the cashless-first model comes into play. It allows businesses to offer inclusive cashless payment solutions like hybrid payment models and cash-to-card kiosks to fill the gap and serve all customers!
Any time a business adopts a new technology or implements a new strategy, it can come with upfront costs. Depending on the digital payment system you opt for, you may need to plan for:
- Hardware costs
- Software installation or integration
- Staff training expenses
As with any technology, there can sometimes be hardware or software challenges that affect operations, including:
- Power or system outages
- Weather-related issues
- Loss of connectivity
- A rare system failure
If any of the above or other disruptions were to happen, it’s always best to have backup strategies in place, such as offline payment modes or contingency workflows. Ensure all staff are well-trained to step in, in the event of a disruption.
Inclusive Cashless Solutions with Ready Credit
Ready Credit’s inclusive digital payment solutions are scalable, hybrid systems, empowering businesses to embrace the cashless-first revolution and accommodate all customers with:
- ADA-compliant Cash-to-Card® Kiosks that allow cash-only or preferred customers to pay their way.
- ReadyCARD® technology that empowers every customer, including those who can only (or want to only) pay in cash.
- Wearable digital payment solutions and other venue-friendly digital wallet systems for large events, transportation hubs, amusement parks, and more.
Final Thoughts: Is Going Cashless the Right Move for Your Business?
The global economy is embracing the cashless revolution, and today’s businesses don’t want to be left behind. As with any transition, it’s a process — you don’t have to go all in overnight.
Instead, adopt a cashless-first strategy, allowing you to pace your transition and accommodate unbanked or cash-preferred customers with inclusive digital payment solutions, such as, Ready Credit’s Cash-to-Card® Kiosks, ReadyFLEX®, customizable ReadyCARD® prepaid debit cards, and ReadyPAYOUTS® — a payment reimbursement solution.
Transform your business with Ready Credit’s hybrid digital payment solutions designed to serve every customer.
