Advances in technology mean that it's now possible to run a cashless business, but almost half of small businesses say that going cashless isn't feasible.
An HMRC survey at the end of last year found that most small businesses still take cash. Only 29 per cent said they were cashless, and most of those were businesses offering only high-value services like building work.
We decided to take a deeper look, asking small businesses about their attitudes towards a cashless system.
Of everyone polled, 70 per cent said that they did not use an entirely cashless system, although 21 per cent do use chip and pin machines to take payments.
However, the reluctance of small business owners to switch to a cashless payment system isn’t just stubbornness - 46 per cent of small businesses say that a cashless system simply wouldn’t work. This may be due to the costs associated with cashless payment systems, and also customer reluctance to abandon cash payments.
On the other hand, not so long ago it would have seemed impossible to pay for a taxi or handyman without cash, but innovators like Uber and TaskRabbit have started to shake things up. We may find that concepts that couldn’t work right now are far less out of the question in a few years time.
Despite over two thirds of business still receiving cash payments, and nearly half both unwilling and unable to switch to a cashless system, 30 per cent do not use cash at all.
Of those polled, six per cent only accept chip and pin or contactless payments, while nearly a quarter say they only accept payments online or via an app.
Of course, the way you receive payment will vary from business to business. If you run an online shop you’re more likely to take payment via services like PayPal than if your shop doesn’t have an online presence, or if you run a restaurant or takeaway.
Methods of payment are constantly changing, but it’s clear that for the moment, cash is still king for small businesses.
Are you looking to go cashless? Let us know in the comments
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
14 March 2017 • 3-minute read
With warm temperatures and lots of rain predicted for this spring, how can you give your gardening business a boost? A small business guide…
1 March 2017 • 3-minute read
If you’re a small business owner, self-employed or considering becoming one of the two, you’ve probably heard the term 'liquidity' bandied…
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2021 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.