SmartPreneur
Advertisement
  • Home
  • Trending News
  • Brand Insights
  • Profiles
  • Hustle Life
  • Weekend Teaser
  • Radio
  • TV
  • Games & Quizzes
No Result
View All Result
  • Home
  • Trending News
  • Brand Insights
  • Profiles
  • Hustle Life
  • Weekend Teaser
  • Radio
  • TV
  • Games & Quizzes
No Result
View All Result
SmartPreneur
No Result
View All Result
Home SME

Here’s Why Businesses Will Benefit when CBN’s Cashless Infrastructure Comes Through in 2025

Blessing Osazuwa by Blessing Osazuwa
January 5, 2023
in SME
0
Here’s Why Businesses Will Benefit when CBN’s Cashless Infrastructure Comes Through in 2025
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Whatsapp

The Central Bank of Nigeria recently disclosed in a document that cash-based transactions would reduce by 2025. According to the Payments System Vision 2025 agenda, the goal is to have a cashless and efficient electronic payment system infrastructure that would facilitate financial services in all the sectors of the economy.

“As we implement the PSV 2025 agenda, the CBN will continue to ensure that the Nigerian payments system is widely utilised domestically, supports government’s financial inclusion objectives, and meets international standards while contributing to overall national economic growth and development of Nigeria,” the bank said.

Without a doubt, the popularity of physical money is declining, and cashless forms of payment, such as credit cards, mobile wallets, direct debit bank transfers, mobile apps, cryptocurrencies, gift cards, and vouchers are becoming more popular.

While you may not be interested in going fully cashless in your business, it is important to make sure you have multiple payment options for your customers. Hence, if your business’ payment options are limited, you could be chasing away customers.

Cashless transactions are extremely beneficial to both businesses and customers and here is why:

1. Saves Time and Effort:

It could be time-consuming and expensive transporting cash to deposit at the bank frequently especially if you receive a high volume of cash. Frequent bank trips can shift your focus away from other demanding tasks, and going the cashless route means you’d be freeing up time to attend to other important tasks.

You will also be saving yourself the stress of dealing with long bank queues and generally make your days more productive.

Although going to the bank to deposit or withdraw cash might not seem necessarily daunting, implementing cashless payments would open your eyes to see the benefits that you’re missing out on.

2. Promotes Transparency and Documentation

Introducing cashless transactions sets a business up for transparency in its dealings because it is easy to prove that a purchase was made, check the amount paid at a glance, the time of payment and the parties involved.

Armed with a database of such information will allow you to keep track of peak transaction times as well as trends in the buying and spending habits of your customers. Provided that transactions are documented, analyses can be done to determine and develop more efficient business strategies.

3. Mitigates Risks

Contrary to some arguments, working with cash poses a major risk most times. From fake currencies to burglaries, the drawbacks of offline payments evidently outweigh the disadvantages of e-payments. Whether on-premises thefts or by employees, the risk associated with keeping large sums is reduced in cashless transactions as payments go directly to the company’s account.

4. Simplifies bookkeeping.

Payment methods do not only determine ease of transactions, they affect other areas of a business such as accounting and bookkeeping. Often times, accounting is a major challenge for small businesses that only accept cash or checks. Having to count cash manually while reconciling accounts at the end of every business day could be frustrating. This approach is not only prone to human errors but makes it even more difficult to record accurate information.

Once an entrepreneur leverages a cashless payment system, cashflow can be easily monitored in a centralized place. If all transactions are automatically recorded, payments would be accurately accounted for from customers to suppliers and staff also.

5. Customer satisfaction and credibility

Considering the highly competitive markets that businesses operate in, it is crucial to be flexible when relating with customers. If you notice that some of your customers prefer a certain payment method to another, then go ahead to include it so that buying from you is effortless. You should not lose money and potential customers because you are not embracing different payment methods. The popularity of online shopping is skyrocketing, so small business owners who want to still maintain cash-only payment will be doing themselves and their business a disservice.

Furthermore, accepting card payments, transfers and other online transactions changes how a small business is perceived. Generally, such businesses appear more professional and credible to prospective customers who would be more confident when buying from you.

6. Improves sales figures

Cashless transactions allow entrepreneurs to boost sales within a short period of time. Cash-based transactions involve a long process of receiving the cash down to recording payments. The entire process is bulky in itself. Cashless transactions allows you to do more with less time and resources, thus cutting down operations cost and improving your figures overall.

The Bottom Line…

It is wise to make available a payment format that your customers are familiar with, and this should include cashless payment options. With the recent statement from the Central Bank of Nigeria, it will become a reality sooner than later, and those businesses that have already adopted it ahead of the time will be the better for it.

Tags: Business operationsCashless transactionsCentral Bank of NigeriaGodwin EmefieleOnline payments platformSmartpreneur
Previous Post

Bimbo Alase-Arawole: How she changed her entrepreneurship story with one big RISK

Next Post

First Bank Partners JA Africa For Entrepreneurship Competition

Blessing Osazuwa

Blessing Osazuwa

Blessing does the research to bring you needed information for success.

Related Posts

How to steal your competitors’ future customers
SME

How to steal your competitors’ future customers

by Blessing Osazuwa
September 15, 2023
0

The competitive world of business requires businesses to be strategic in order to attract customers. One way to do this...

Read more
There’s Still Hope: 4 Ways To Cut Your Losses
SME

There’s Still Hope: 4 Ways To Cut Your Losses

by Blessing Osazuwa
September 15, 2023
0

Starting out on the entrepreneurial journey is like setting sail on a grand adventure, filled with moments that call for...

Read more
4 Tips That Will Change The Way You Pitch Your Business To People
SME

Meetings aren’t always necessary. Here’s when to opt for alternatives

by Blessing Osazuwa
September 13, 2023
0

Meetings are a staple of the modern workplace. They're used to discuss projects, share information, and make decisions. But are...

Read more
Rekindle the Spark in your Business: 5 Steps
SME

Rekindle the Spark in your Business: 5 Steps

by Blessing Osazuwa
September 13, 2023
0

Running a business is a journey filled with ups, downs, and unexpected twists. Over time, even the most passionate entrepreneurs...

Read more
Want To Elevate Your Brand? Consider Some Or All Of These 5 Things
SME

Want To Elevate Your Brand? Consider Some Or All Of These 5 Things

by Blessing Osazuwa
September 11, 2023
0

The fast-paced world of modern business demands a brand that genuinely resonates with your target audience. Elevating your brand requires...

Read more
Getting More For Less: How to Engage with Stakeholders
SME

Getting More For Less: How to Engage with Stakeholders

by Blessing Osazuwa
September 6, 2023
0

Navigating entrepreneurship requires a crucial skill: the ability to negotiate effectively. Whether you're engaging with suppliers, partners, or customers, the...

Read more
How to Protect Your Intellectual Property as an Entrepreneur
SME

How to Protect Your Intellectual Property as an Entrepreneur

by Blessing Osazuwa
September 6, 2023
0

Venturing into the exciting world of entrepreneurship, where innovation is the driving force behind success, safeguarding your intellectual property (IP)...

Read more
Load More
Next Post
First Bank Partners JA Africa For Entrepreneurship Competition

First Bank Partners JA Africa For Entrepreneurship Competition

Please login to join discussion

Recent News

5 Practical Ways To Turn Your Biggest Client into Multiple Big Clients

5 Practical Ways To Turn Your Biggest Client into Multiple Big Clients

September 20, 2023
How to steal your competitors’ future customers

How to steal your competitors’ future customers

September 15, 2023
There’s Still Hope: 4 Ways To Cut Your Losses

There’s Still Hope: 4 Ways To Cut Your Losses

September 15, 2023
4 Tips That Will Change The Way You Pitch Your Business To People

Meetings aren’t always necessary. Here’s when to opt for alternatives

September 13, 2023
SmartPreneur

© 2020 SmartPreneur

Navigate Site

  • Home
  • Trending News
  • Radio
  • Games & Quizzes
  • TV

Follow Us

No Result
View All Result
  • Home
  • Trending News
  • Radio
  • TV
  • Hustle Life
  • Brand Insights
  • Profiles
  • Game & Quizzes
  • Weekend Teaser

© 2020 SmartPreneur