In recent years, there has been a significant shift towards cashless transactions in Canada. With the rise of contactless payments and online shopping, more and more consumers are opting to use credit and debit cards instead of cash. As a result, retailers that do not accept these forms of payment risk losing customers. The argument can be made that, in 2024, cash-only businesses will have hard times surviving. Let’s discuss why.
Consumers crave convenience.
Using credit or debit cards makes life super convenient. They allow consumers to make purchases quickly and easily, eliminating the need to carry cash. This is particularly important for online shopping, where credit cards are the primary payment method. Consumers can quickly enter their card details and complete their purchases without the need to enter physical stores.
“Credit cards are often more convenient and secure than carrying cash,” notes Kimberly Rotter on Investopedia.com, “As long as you can pay your bill in full each month, using a credit card is typically more advantageous than using cash for in-person purchases. You need to use a credit card for online transactions as you can’t pay in cash.”
Shoppers value security.
Carrying cash can be risky. This is especially true in crowded areas or at night. Using a credit or debit card provides an added layer of security for shoppers. These forms of payment are protected by fraud protection measures. In addition, consumers can quickly and easily cancel a lost or stolen card, providing them with further peace of mind.
“If your credit card offers purchase protection, you can receive replacement, repair or reimbursement if an eligible item you purchased using the card is stolen or damaged,” explain Stella Shon and Lauren Nicholson of LendingTree, Major credit card networks, such as Mastercard and Visa, have different policies for purchase protection…Generally, claims for purchase protection can be filed online or by phone for all major credit card networks.”
Customers enjoy getting rewards.
Who doesn’t enjoy getting something for free? There are tons of credit cards out there that enable shoppers to collect points towards such freebies as airline tickets, hotel stays and car rentals. Not all rewards are travel-based. Cash-back cards are great for those who wish to save money. With every purchase, a shopper gets a percentage or two of the spending back. The accumulating savings let cardholders get significant discounts on future credit card bills.
“Rewards credit cards are the most popular type of credit card in Canada, and for good reason: they offer tons of benefits in the way of points, cash back, travel perks, and insurance,” informs Natasha Macmillan on RateHub.ca.
Do you accept credit and debit cards at your place of business?
At Divvia, we offer a wide variety of top-of-the-line payment terminals to help your company easily process credit card and debit card transactions. They include the Poynt Smart Terminal which offers a fast and better experience for both you and your customers. This Android-based terminal has a suite of business management tools that allow you to keep track of all your orders, reports and inventory in one place.
To learn more, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!