A whopping 84% of consumers globally now consider speed and convenience as the top reasons for choosing a payment method.
The use of cash for transactions has been steadily declining worldwide. According to PwC’s report, global cashless payment volumes are projected to increase by over 80% from 2020 to 2025, reaching nearly 1.9 trillion transactions.
Nowadays, offering easy cashless payment options is no longer a perk but a necessity for startups. It allows them to cater to a tech-savvy customer base and stay competitive in the market.
Therefore, easy cashless payment options are becoming a key factor for startups to attract more customers and ensure their success in the digital age.
The Adoption of Cashless Payments
The growing popularity of cashless payments can be attributed to several key factors, and considering these factors is important for any startup that wants to focus on customer experience.
The first factor is convenience. Cashless payments offer a faster and more convenient checkout experience. With the tap of a phone or a few clicks online, customers can complete transactions without the hassle of carrying cash or fumbling with change.
The second one is security. Many cashless payment methods, like digital wallets, come with proper security features like encryption and two-factor authentication, which can be more secure than carrying physical cash.
The third factor is all about speed. Cashless transactions are significantly faster than cash transactions, particularly for small purchases. This means shorter queues and a more efficient shopping experience for both customers and businesses.
The fourth one is to promote digitalization. The increasing popularity of online shopping and e-commerce platforms has significantly contributed to the shift towards cashless payments. Cashless options are the natural payment method for these digital transactions.
The Market Size And Growth Of Cashless Payments
The global cashless payment market is experiencing phenomenal growth. According to a report by Mordor Intelligence, the market was valued at USD 6.68 trillion in 2022 and is expected to reach a staggering USD 23.39 trillion by 2027, growing at a CAGR (Compound Annual Growth Rate) of 23.4%.
The Impact of Covid-19
The COVID-19 pandemic acted as a major catalyst for the adoption of cashless payments. Concerns about physical contact and the spread of germs through cash handling led to a surge in the use of contactless payment methods like mobile wallets and digital payments. This shift in consumer behavior is expected to have a long-lasting impact on the future of payments.
Why Easy Cashless Payments Matter for Startups?
Today’s startups know that offering easy cashless payment options is no longer a luxury for startups; it’s imperative for businesses.
Millennials and Gen Z, the largest and most tech-savvy consumer demographics, overwhelmingly prefer cashless transactions. Studies show that 67% of Millennials and 44% of Gen Z prefer to use mobile wallets for in-store payments. By offering easy cashless options like Apple Pay, Google Pay, and other digital wallets, startups can tap into this vast and growing market segment.
Cashless payments simplify the checkout process, leading to a faster and more convenient customer experience. Customers can complete transactions in seconds, eliminating long lines and the hassle of carrying cash. This translates to increased customer satisfaction and loyalty, which are crucial for any startup’s success.
Studies by Baymard Institute show that a staggering 70.19%% of online shopping carts are abandoned before checkout. One of the main reasons for cart abandonment is a cumbersome or confusing checkout process. By offering easy cashless options, startups can reduce cart abandonment rates and ensure a smoother checkout experience, which ultimately leads to increased sales and revenue.
Cashless payments allow for automated and streamlined financial processes. Startups can say goodbye to manual cash handling and reconciliation, reducing errors and saving valuable time and resources.
Additionally, cashless transactions provide real-time data and insights into customer spending habits, allowing startups to make data-driven decisions and optimize their business strategies.
How Startups Can Use Easy Cashless Payment Options?
In the competitive world of startups, offering a seamless and convenient payment experience is crucial to attracting and retaining customers.
Popular Digital Wallets
Millennials and Gen Z are driving the mobile wallet revolution. Integrating popular digital wallets like Apple Pay, Google Pay, and Samsung Pay into your payment system is essential. These solutions offer a fast, secure, and contactless way for customers to pay, significantly enhancing their checkout experience.
Diverse Payment Preferences
While digital wallets are gaining traction, it’s important to offer a variety of cashless payment methods to cater to a wider customer base. This may include traditional options like credit cards, debit cards, and net banking.
Additionally, consider offering regional payment solutions that are popular in your target market to ensure maximum customer convenience.
Secure Payment Gateways
Security is paramount when dealing with financial transactions. Partnering with a reliable and secure payment gateway is essential for protecting customer data and ensuring smooth transaction processing. Look for a gateway that offers features like fraud detection, encryption, and compliance with industry security standards like PCI DSS.
Transparency is Key
Customers appreciate clarity and ease when making purchases. Make sure your website or app clearly displays all accepted payment methods with logos and any associated fees.
Additionally, provides a secure and transparent checkout process that guides customers through each step without confusion.
By implementing these strategies, startups can leverage the power of easy cashless payments to attract new customers, boost sales, and gain a competitive edge in the market.
Summing Up
As contactless payments and even cryptocurrency gain traction, staying ahead of the curve in cashless solutions is crucial. If you are interested in crypto payment then you need to stay in touch with the market using tools like everix Peak. By embracing these trends and prioritizing a seamless customer experience, startups can unlock a world of opportunity, attracting new customers, boosting sales, and establishing a strong competitive advantage in the ever-evolving marketplace.
Modupe Gbadeyanka