Today’s internet-driven, the fast-paced world demands instant gratification and greater convenience when it comes to many things in life—from the ease of online shopping, cloud solutions for enhanced productivity, and other digitally-oriented services.

Part of the transformation includes the rapid evolution of online and instant payment methods, which has been growing in popularity in recent years but ushered in more users since the pandemic in 2020.

As the COVID-19 outbreak shifted the economic norms, it paved the way for the accelerated boom of switching from cash to card payments to support contactless transactions. Now, we’re here to look back and explore how cashless payments now jumped from being a novelty to a necessity in 2021 and beyond.

Cashless Transactions as the New Normal in 2021

Before COVID hit the world and turned it upside down, cashless payments were already on the horizon. Worldpay global payments found that early 2020 saw a projection of in-store payments dropping from 30 per cent in 2019 to a mere 19 per cent in 2023, but in light of the pandemic, the report shows cash payments now fell at 20 per cent in late 2020.

The dramatic change in payment methods proves that cashless transactions are quickly becoming the standard globally, so consumers are now expecting to pay for goods and services as easily as a tap of a button on their mobile phones. It’s a fitting change since eCommerce stores are booming more than ever as it dominates all sectors of the economy, especially during lockdown restrictions in 2020.

What are the Challenges Businesses Face with Cashless Transactions?

Digital payments indeed offer greater convenience for businesses and consumers alike, but there are some additional difficulties your venture has to iron out moving forward in today’s cashless world. Some of these challenges include the following:

● Companies now need to put their cash management strategy back to the drawing board to make way for credit invoices. This includes streamlining cash flow and cash positions to cater to instant payments.

● Companies need to improve the interoperability of their payment schemes, especially since not all banks cover instant payments, so you may need to explore other options to fully incorporate cashless transactions.

● The risk of getting fraudulent payments is higher than ever with cashless transactions.

The Bottom Line: The Importance of Keeping Up with the Times

Now that cashless payments have become the new normal, businesses like yours need to keep up with the shifting consumer demands and meet their expectations. While going from cash to card transactions feels like a leap, it’s a necessary change that ensures you’re delivering quality services to your customers in a time that embraces digital transformation.

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Written by Daniele Paoletti