In spite of the rise and rise of non-cash payments, many SMEs have stuck with cash for their main or only method of payment. Traditionally there have been several good reasons for this, but recent developments in non-cash payments have changed the business landscape radically.

POS Terminals Can Now Be Fitted Onto Smart Phones

In many ways, the development of POS terminals can be compared to that of mobile phones. When they first came on the market, they were hugely expensive and well and truly out of the reach of SMEs and private individuals. Now there are plenty off affordable models on the market, even the most basic of which is easily as capable as the advanced models of several years ago.

Possibly the most exciting development of all, is the ability to attach card readers to smart phones. These not only eliminate the need to buy a separate POS terminal, but also have the advantage that mobile workers can use them pretty much from anywhere and can avoid carrying a dedicated POS terminal as well as everything else.

POS Terminals Improve Safety

Thieves love items they can carry and liquidate easily and their favourite target is cash. By using a POS terminal, SMEs can accept payment cards e.g. Visa and Mastercard, which eliminates the security issues surrounding cash.

While it is true to say that there are costs associated with accepting cards, these have to be set against the costs of cash. Either SMEs have to make relevant security arrangements, for which there is a cost and which in themselves carry a risk or they have to take their chances with theft.

It also has to be born in mind that as well as the financial risks of theft, which may or may not be covered by insurance, there is also the emotional upheaval and reputational risk. If thieves attack a premises for cash, it’s entirely possible that they will also take money off customers.

Mobile workers need to consider the repercussions of being physically attacked for cash.

POS Terminals Provide Credibility As Well As Convenience

These days’ consumers are turning away from cash due to a combination of security concerns and convenience.

Retailers with fixed premises can increase their turnover by making it easy for customers to spend money in their shop. For example, say a customer knows that they need to buy bread and milk and they bring along cash to cover this. They may simply ignore other items because they do not have the cash on hand to purchase them. If a retailer accepts cards, the customer can happily buy extra items.

Mobile workers with POS terminals send their customers a reassuring message that they are committed to their business for the long-term. This sets them apart from cash-only workers.

Both sets of workers can benefit from the enhanced functionality of POS software, which as a minimum makes it easier to track payments in order to manage income and organize tax reporting.

The author spent 15 years in financial services, of which 10 were spent working for Visa. After escaping she now works full-time as a freelance writer and translator, specializing in topics related to business and finance. When not working, she enjoys going for long walks with her dog and playing poker.