Advances in modern technology have brought us closer and closer to a significant realisation.
Advances in modern technology have brought us closer and closer to a significant realisation – that a cashless society will soon become a reality. In fact, further adoption of contactless payment methods resulted in £3,370.6 million in spend just within the U.K. this past December. That’s an increase of 16.1% on the previous month and a rise of 180.7% on the previous year! From both a convenience and functionality perspective, it’s tough to deny that consumers are adopting a cashless approach with surprising rapidity.
Increased customer demand for more streamlined, secure and simple payment options has led us to this shift toward cashless; the onus is now on banks to meet that demand with flexible digital transaction alternatives.
The Two Halves of Cashless
As rapid technological changes in B2B and B2C transactions are transforming the nature of payments, new opportunities are being created for several different industries. A prime example is retail, where major changes in the space to both bank-to-consumer and bank-to-business relationships have shaken the industry to its core.
In particular, the proliferation of mobile wallets has changed the way people interact with their favourite brands. By generating brand-specific apps, companies like Starbucks create a direct revenue stream for consumers to make in-store purchases via their mobile wallet. Retailers can further entice potential customers through loyalty and rewards programs or other mobile-only goodies; this invariably generates a brand ecosystem that encourages frequent interactions. With more interactions comes higher purchase frequencies and a stable revenue stream that didn’t exist ten years ago. A boon for B2C companies, cashless presents a unique opportunity to connect with your community and encourage purchasing decisions within a controlled UX.
As for B2B payments, there is absolutely pressure for cash to flow more freely. B2B payments have been cashless for some time, but innovation has been slower than in the B2C space. Thankfully, the increased competition among banks generally has increased pressure to improve the efficiency of B2B payments. And with that increased efficiency comes a high standard for security and better potential for increased growth.