Over the past few months, businesses have seen a huge surge in digital payments over cash use—and some places are no longer accepting cash at all. We know that consumer behavior has been trending more towards digital payments in recent years, but there's also a case to be made for switching to digital payments when you pay your staff, too.
Here are some unexpected reasons to switch to digital payments that not only benefit your business and your customers, but your hardworking employees, too.
Cash isn't COVID-friendly
While we’ve always known handling money isn’t necessarily clean, COVID-19 has only heightened that awareness. When everyone is wearing masks and using hand sanitizer, dealing with cash doesn’t make much sense. The lifespan of paper bills can range from 4-15 years according to Federal Reserve meaning the cash you're handling has quite a bit of time to pick up germs or bacteria. If you do use cash, remember to wash your hands after handling.
Digital payments boost sales
The convenience of paying for things digitally naturally makes the transaction process easier for your customers—meaning they're more likely to spend. According to restaurant analyst Peter Saleh, people who order digitally tend to spend about 20 to 30 percent more than those who don’t. Plus, being able to digitally add on gratuity makes it easier for people to tip—they don’t have to have the right amount of change, but instead can add on a percentage right at the point of sale.
Mobile ordering wins over customers
Another reason digital payments win out over cash is that they're simply faster—especially if you implement mobile ordering. Quick serve restaurants and coffee shops, for example, can have customers order and pay for their takeout items before they even reach your store. This helps move the line faster and makes it as easy and simple as possible for customers to spend money. It also allows you to serve more customers.
Employees can get paid faster
If you tip your employees in cash, you might spend a lot of time getting them the right change or making trips to the bank. Employees often have to wait until there’s the right amount of cash in the till to receive their tips. And for mileage reimbursements or other one-off payments, employees sometimes have to wait for these payments to make it onto their next paycheck, which can take two weeks.
Before the current pandemic roughly 78% of workers were living paycheck to paycheck, and we know COVID-19 has only exacerbated this problem. Even if employees are having their wages direct-deposited every two weeks, adding a way for them to be digitally tipped out after each shift can help them better manage their cashflow. Finding a solution that lets you digitally pay your employees their tips or reimbursements after each shift can drastically improve their day-to-day lives.
Safer. Faster. Better for hourly workers.
Aside from being safer in the era of COVID-19, digital payments win out over cash for many reasons. And when you can help your employees get paid faster, you make a real difference in helping them gain short-term financial stability—which is the first step in making long-lasting change.