Higher shopping baskets and lower costs: Companies benefit from the trend towards more and more card payments by increasing turnover and efficiency.

For the first time since last year, card payments are ahead of cash. Last year, the German retail trade collected more than 209 billion euros, an increase of 12.4 billion euros compared to 2017, via electronic payments. What this means for customers and companies has been investigated by the ECC Cologne research institute in cooperation with Concardis. In a double survey, retailers, restaurateurs and hoteliers from the SME segment as well as customers were asked for their assessment. The results provide an all-round view of consumer preferences in payment and business potential for small and medium-sized enterprises (SMEs) in Germany. According to the survey, more than half of all customers (52 percent) prefer to pay only cashless. This trend towards digital payment offers significant potential for sales increases, efficiency gains and cost reductions.

45 percent time savings through cashless payment procedures

According to the study, customers buy more when card payment is possible. 43 percent of the companies surveyed reported an increase in receipt and shopping basket amounts due to cashless payments. The survey shows how cashless payments affect other key company figures. More than half of the companies surveyed stated that card payments and co-payments had a positive effect on turnover (53 percent) and the share of new customers (51 percent). In addition, the increase in card payments is accompanied by significant efficiency gains. The settlement of cash payments in the back office takes about 45 percent more time than the handling of cashless payments. The time savings in downstream processes result in further savings potential for retailers, restaurateurs and hoteliers. Contactless payment in particular also offers fast processing during the checkout process. More than half of the SMEs surveyed (52 percent) stated that contactless payments take less time than cash payments.

How will the future of card payment develop?

Robert Hoffmann, CEO of Concardis, predicts that card payment will continue to have strong potential: “With simple, innovative payment solutions and without large investments, merchants and service providers can leverage business potential and make their companies fit for the future. Card payment acceptance with contactless capability is a minimum requirement. In particular, the potential of mobile payment will only be unfolded in the coming years. Companies should prepare themselves at an early stage in order to profit from these developments”. Almost one third of the customers surveyed already regularly pay contactless with their card. Among smart consumers – users with a particular affinity for technology and smartphones – the proportion is even higher at 41 percent. Cash is still popular for amounts under 50 euros. But the willingness to pay contactlessly is high – and independent of the receipt amount. In comparison, mobile payment is catching up more slowly. Only five percent of customers regularly use smartphone-based payments at the point of sale.

 

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Link: The ECC Cologne has investigated the advantages of card payment for companies.

Pictures: pixabay, ECC Cologne/ Concardis

//KH