Just a few years ago, the idea of banning cash from public events would have seemed like a risky move that would likely negatively impact sales. But with our increasingly cashless culture, contactless payments have become the norm at most festivals, concerts, and sports events. With a quick swipe of a payment card or smartphone app, event-goers can pay for their ticket and anything else they need without worrying about carrying cash with them. Cashless payments already account for 72% of all transactions and are expected to rise. But where does this leave cash, and do coins and bills still have a place in our future?
Cash Is No Longer King
Cash may have once been considered King, but the rise in cashless payment systems has made it more of a footsoldier. For the global event industry, cashless payments provide a wealth of opportunities. Event organizers can generate revenue before the event, reduce queuing times, create new sponsorship opportunities, improve hygiene, and help with social distancing. In fact, event-goers are likely to spend 22% more on impulse purchases when using a cashless payment system as they feel more secure about their money. It also enables event organizers to better understand the buying behavior of attendees and see what they are spending their money on, when, and where. They can then use this data to provide rewards and incentives.
Drawbacks Of A Cashless Society
Cashless transactions in Asia-Pacific could grow by 109% until 2025 and 43% in the US. But while there are undoubtedly benefits to becoming a cashless society, there are also drawbacks. Cashless payments require people to have bank accounts or use mobile banking apps like Apple Wallet. But this means giving that business access to your personal information, which for some people is a huge invasion of privacy. This is just one of the reasons why it’s so important to find a reliable and trustworthy bank or lender.
Types Of Cashless Payments
Credit and debit cards are still the most popular cashless payment methods, with many using contactless technology. But you can also now pay for items with payment apps on your smartphone and even your smartwatch. There are also digital services that store your payment details, such as Apple Pay and PayPal, that allow for contactless payments made using your smartphone or PC. Other services available link your mobile number to your bank account so you can pay someone just by sending a text.
There are huge benefits to going cashless for both consumers and businesses. But that doesn’t mean that cash is on its way out anytime soon. Cash still has its benefits, especially as it doesn’t have quite so many barriers to entry that cashless payments do. So while it may no longer be King, you can still make room for those coins and bills in your wallet.