Going cashless – a new trend that will take off?

With technology taking over via social media and apps, it’s no wonder we are hearing of businesses deciding to go cashless in 2018.

Banking apps, apple pay and contactless account for more than 70% of transactions with a small percentage of people carrying cash on them day to day to pay for goods or services. According to a national survey in the next 10 years, cash payments will only make up a fifth of all transactions with contactless becoming the number one source of payment. Throughout 2017 £10.3billion was spent through contactless transactions a rise of 5% on the previous year.

Salons can be forgiven for thinking their must be a downside to going cashless in the salon, so here we examine the pros and cons of going cashless in hairdressing.

Pros

• Prevent the processing of cash at the end of each night – efficient
• Clients would potentially be more interested in purchasing retail, with an unlimited spend on a contactless payment
• Staff would potentially feel safer knowing cash was not held on the premises

Cons

• Would discourage clients from leaving tips
• The salon would be required to co-operate with HMRC as tips would be dealt with in a different way due to tax reasons.
• Going cashless could potentially put off clients who don’t prefer to pay this way.