Yes, a cashless-first business model is typically more sustainable than a cash-based system. By prioritizing digital payments, businesses can avoid the exorbitant costs of handling and transporting physical cash, greatly reducing their carbon footprint. They can also meet their ESG and other sustainability goals, joining global and community-based efforts to operate in an environmentally friendly way.
Benefits of a Cashless Economy for Sustainability
1. Reduced Resource Consumption
Operating as a cashless-first business, you can avoid the resource drain that goes hand in hand with producing, disseminating, and handling physical currency. Such resources include water, paper, ink, and other printing costs, as well as time-consuming manual labor involving till reconciliation and transport.
2. Greater Transaction Efficiency
Digital payment systems allow faster transactions and automated back-of-house processes, such as automated payment reconciliation. With hand-to-hand cash transactions and employee cash handling out of the picture, businesses can streamline operations and essentially eliminate manual accounting errors, saving time and other resources.
3. Infrastructure Energy Considerations
While the World Bank acknowledges that cashless payments are greener and more eco-friendly than traditional cash payments, digital payments still require their fair share of resources. No matter what, operating and maintaining a secure digital payment infrastructure requires a reliable power supply, Internet connectivity, and more.
However, resource-efficient payment technologies and renewable energy sources can limit the environmental impact. For instance, offering customers digital wallet/mobile payment options and QR-code payment capabilities means customers can easily pay with their existing devices.
4. Path to a Greener Financial Future
A cashless-first future is a greener future. Businesses can shrink their carbon footprint and ultimately meet their short and long-term ESG goals by offering their customers inclusive and sustainable payment options.
Transitioning to an inclusive, cashless-first payment system can help businesses lower their environmental impact while improving operational efficiency and customer convenience. Ready Credit’s inclusive digital payment solutions are lighting the way for businesses to achieve a greener and more sustainable present and future.