Going Cashless: Is it the End of Cash in the Hospitality Sector?

Cashless – The term means having no cash, but in today’s world, this term refers to using a digital form of payment instead of a cash payment for various transactions done by an individual. The hospitality sector continues to be one of the fastest-growing sectors in the world. The domain is also utilizing cashless procedures. Here we shall discuss the advantages and disadvantages of going cashless.

With more and more people making the transactions cashless, many restaurants are making a move towards a state called a cashless society. However, does it make sense to go cashless right now?

Digital payments provide an opportunity for companies to gather data on consumer preferences.

The apps or the websites collect a significant amount of data through the payments, which helps the companies to know exactly who our customers are and what they want. Thus, it’s critical to know the advantages and disadvantages of transforming to a cashless system.

Let’s look at some of the Advantages and Disadvantages.

Advantages: 

• Convenience to guests – Quicker transactions
• Improved service and efficiency
• Reduction in human errors and labor costs
• Hospitality Service providers will be able to keep a check on income and tax
• It will help in discouraging money laundering
• Driving Business Insights by the proper collection of customer data
• Credit Payments can be made (Using credit cards)
• Transactions are done through organized channels, i.e. Banks and Financial Institutions
• Discounts and Loyalty Benefits
• Much Easier Bookkeeping

Disadvantages: 

• Some people do not carry a card because of the urge to overspend
• Higher Costs as Credit card companies charge processing fees
• Digital payment wallets and Net banking services can be hacked at times
• Less knowledge of doing digital transactions
• In the case of server error, transactions may fail

After all these advantages and disadvantages, the hospitality industry has welcomed the move towards going cashless & is considering the disadvantages as a temporary inconvenience.

Hospitality services (such as Restaurants & Hotels) are urging their customers to go cashless and choose various options available to make bookings, such as Internet banking, cheques, credit cards, online transfers, and loyalty points.

Another option that the hotels are offering their customers to get away from making cash payments is making payments through e-wallets. To explore more such valuable information trending in today’s digital age, visit YourTechDiet now.

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