The cost of running a non-mobile business is rising and cash is to blame.
That’s one conclusion that some are drawing today after a 2009 report from Visa has resurfaced and proven to be prescient in its outline of the rising cost of running a cash-only business.
Steve Perry, executive vice president of Visa Europe, says: “Cash is expensive… We need to be using it less.”
Just weeks earlier, the Payments Council announced that by 2018 the check would also be dead.
So what’s the big problem with paper?
“There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement,” Paul Smee, chief executive of the Payments Council, said.
The solution to this problem? Plastic and the mobile payment processors that readily and securely accept their swipe.
“Faster payment cycles are just one of the ways credit/debit card acceptance can help you maximize your profitability,” the team at North American Bancard said in response to the chatter about cash and checks becoming too expensive. “The fact is: customers who pay with a credit or debit card spend as much as 20 percent more than customers who pay with cash or checks.”
To learn more, check out “The Costs of Traditional (cash and check) Transactions vs. Credit Card Transactions.”