Retailers have long accepted multiple forms of payment as a way of catering to the preferences of their customers. While many consumers prefer credit or debit cards, there are still people who pay cash. But as consumers become more digitally minded, cash payments are going away for some retailers. Some countries, such as Denmark, are becoming cashless societies. The Danish government is considering a proposal to allow some establishments, such as restaurants, clothing stores, and gas stations, to refuse cash payments, according to Pymnts.com.
One motivation for cashless transactions is economic growth. Retailers spend resources on security and surveillance, Quartz explains. Making change for customers takes time. Cashless transactions reduce both transaction costs and crime. Quartz cites a McKinsey study that says electronic systems makes banking systems more productive while also reducing black market activities that skirt taxation.
The trend toward cashless transactions is perhaps furthest along in northern Europe. The United Kingdom first introduced contactless payments, where a consumer pays with card completes a transaction with a card reader through radio frequency identification or near field communication. The next wave of these cashless transactions is the mobile phone. For example, Denmark’s Danske Bank has over 2.5 million users of its mobile payment service, according to Quartz. In Sweden, the move toward cashless transactions is being spurred by banks, which use a mobile app called Swish that allows people to digitally transfer funds across accounts, FastCoExist explains.
Netclearance is helping to pave the way for cashless, mobile payments in Nordic countries. Our mBeaconPay software and hardware enables banks and retailers to process transactions wirelessly with mobile devices as if the payment were cash. Cash-based mobile payments may still be new in some markets but a growing number of retailers are adopting the technology. We can help your transition to cashless transactions. Contact us to learn more.