YouLend and Dojo’s ‘Less Money, More Possibilities’ White Paper Reveals UK Digital Payments Trends
New Research from an Integrated Finance Provider you lend and payment service provider Dojo revealed a significant trend in how businesses operate: they are moving away from cash payments.
In fact, just 5% of businesses in the UK accept cash only today, according to data published in a new white paper: Less money, more possibilities.
Research indicates that the main driver is a proliferation of mobile payments. Already, nearly half (48%) of businesses have adopted digital payment methods, with women-owned businesses leading the way with an adoption rate of 51%, compared to 42% for male-owned businesses . This is largely due to today’s digital society, where mobile devices have become a one-stop-shop for day-to-day consumer administration – particularly after covid, when nationwide shutdowns forced people to spend more time inside their house.
In fact, more than six in 10 people in the UK used Apple Pay for point-of-sale transactions in 2021 – more than any other country in the world.
But in addition to leveraging digital-native target demographics, there are broader benefits for businesses to go cashless, including improved cash flow.
“This research shows that business owners and consumers are embracing new payment methods,” added Jon Knot, head of customer knowledge at Dojo. “What our 40,000+ customers across the UK tell us is that accepting card and digital wallet payments as part of their payment mix gives them unique benefits, including speed , security and reconciliation, which gives them time to manage their business. To address the change shown in this research, business owners should think about providing the right mix of payments based on their customers’ needs. ”
Good cash flow is essential to the health of any business, especially in today’s tough economic climate. And businesses, regardless of acceptance of payment methods, rightly cite improved cash flow as key. With 42% of businesses saying card acceptance improves their cash flow and 69% saying next day payments make cash and business management easier, it’s clear that switching to cashless payments enables businesses to regain control of their cash flow. to flow.
“SMBs today are affected from all sides. In addition to battling inflation and supply chain disruptions, they also face exclusion from traditional finance providers due to outdated risk assessment approaches. SMEs generate a crucial part of the UK’s GDP, but to thrive, managing their cash flow is essential. As this adoption of cashless payments increases, we expect to see more trust and social protection, leading to compound growth of these new payment solutions to suit an even wider pool of businesses,” commented Jacob PethickCCO, YouLend.