Since 2010, tens of thousands of shops shut their doors across america in what’s been called”The Retail Apocalypse.” Nowadays, brick and mortar shops must offer compelling offerings and outstanding service to remain successful.
SCORE found that 91 percent of Americans store at a small company at least once each week, and many Americans believe supporting local companies enables the community. Nevertheless, online retailers are expanding their market share and taking away sales from physical businesses.
While there are lots of explanations for this trend, payment processing is a substantial issue for many smaller businesses. Based on U.S. Bank, 47 percent of Americans favor digital payments over money. In addition to this, nearly half of U.S. consumers carry no more than $20 in their pockets.
The Significance of Payment Processing
A physical store that doesn’t have a suitable payment processing solution will face key challenges, and might eventually fall prey to the Retail Apocalypse. Here are a couple of reasons why retailers will need to update their system to accept different payments.
Online shopping provides quick, convenient service, and 64 percent of customers prefer buying from online stores. Considering that 26 percent of Americans are always on the web, it is logical that shoppers will turn to electronic retailers as they are just a few keystrokes away.
These statistics aren’t a death sentence for brick and mortar shops. Rather, they reveal that local retailers will need to provide exceptional advantage to draw in shoppers. After all, a client can get just what they want from a physical store without needing transport. It makes sense to shop little if it can resolve problems faster than online shops.
Payment processing plays a role in offering this advantage. A store that only accepts money can’t offer this level of service.
However, relying on money can be a safety risk. Company owners assume the risk of fraud and burglary when conducting a cash-based enterprise. Employee theft also becomes an important issue. Not only can a worker take money from the register, but they could also shortchange customers and make legal issues for your company.
Accepting digital payments provides a layer of security for your clients. Any fraud claims are managed by the card business, and getting less money on hand will lessen the chances of theft.
Bookkeeping may be troublesome task for a cash-only brick and mortar enterprise. It might take hours to track earnings and calculate earnings, profit, and other important metrics. Even more, monitoring how well certain things perform can be impossible if a company doesn’t have a contemporary reporting system.
Payment processing solutions integrate with cloud point of sales systems, providing it with strong data to refine operations. Even more, this information can be exported to accounting software like Quickbooks and shave hours of everyday bookkeeping.
Brick and mortar retailers want these features to reduce their costs and keep profitable, particularly in regards to identifying dead stock. Inventory that’s slow-selling not only takes up space, but also results in capital tie-up and can increase administrative costs. Fortunately, a contemporary POS can quickly ascertain item popularity and assist businesses order stock better.
Prepare for Future Issues
As we mentioned earlier, Americans don’t carry very much money in their wallets. This trend could continue and finally result in a largely cashless society. Staying ahead of the curve will help any company prepare for a possible shift in consumer purchasing habits.
More worrying, however, are unpredictable events that could alter the economy overnight. Two recent national disasters demonstrate dangers to brick and mortar stores that may happen again.
The COVID-19 pandemic frightened many customers, and many were exhausted to make use of money and contract the virus. Shops that can’t accept debit and credit cards may lose business as a result of this fear. And clients who journey to such shops and find out they can’t finish their transaction will probably become upset. This reduction in customer satisfaction is the last thing a company wants during a catastrophe.
Second, the U.S. is undergoing a coin shortage due to diminished economic activity. Many companies are asking shoppers to use plastic or pay in exact change. If this could happen with coins, could it possibly happen again with Dollar bills?
Implementing payment processing today can enable a business weather the fallout of a similar future occasion. The marketplace can take an unpredictable term at any time, and embracing the most recent technology puts companies in the ideal position to respond.
Which Payment Processor to Select?
Brick and mortar stores should try to find a payment processor that accepts all major credit cards also incorporates with the ConnectPOS system.
International Bancard recently partnered with ConnectPOS to provide payment solutions for our customers. They offer quick, secure payment processing and make sure companies are PCI compliant.