As the festive season approaches, with the influx of domestic and international tourists, as well as celebratory food and gift spending, retail business increases significantly.
According to SA Tourism, tourists spent around R31bn in the first quarter of 2016. Around R4bn of that was spent on food and drink and around R6.5b on retail - and that’s just international tourists. Furthermore, on average, a customer spends more if paying by card as opposed to cash, which can make a substantial difference to a small business that doesn't offer card payment facilities.
Yoco, a South African point-of-sale payments venture that gives SMEs the tools to accept card payments, gives five reasons to install a card machine:
1. Go global
International tourists may not necessarily have much cash, or not enough to cover all of the things they want to buy. Having a card reader means businesses can accept card payments from both local and international visitors, meaning the tourists can save their forex and the business make the sale.
2. Cards are convenient for everyone
Having to search around malls and markets for an ATM and then standing in a long queue to withdraw cash is painful, especially during the busy season period. Not only is it an inconvenience to carry cash, but it poses a security risk to both the business and its customers. Cards are hassle free and easy to cancel with a simple phone call if they get lost or stolen.
3. Make bigger sales
If someone desperately, desperately wants something from an establishment but does not have enough cash, giving them the option of a card payment means the business can still take the sale and make the customer happy. Customers spend on average 30% more when paying by credit card than when paying with cash.
4. It leaves a trace
Card payments make cash up easier (especially if linked to a POS system with a smart back-end) as they leave a clear trail of what amount was spent with each transaction. The days of going to the bank to deposit a large sum of money - worrying about your safety - should exist no longer. Card payments clear in 1-4 days (depending on the provider) so small business will get the benefit of good cash flow without the hassle of banking hall madness.
5. Cards are safer
Cash can be lost, stolen or destroyed, and businesses that are known to have high volumes of cash on the premises become a target for local criminals. Then there is the issue of counterfeit currency. Card payments have none of these hassles, even if someone loses a slip, the data is all on the machine, or immediately sent to a point of sale system.
While the process for acquiring a card machine from a traditional institution is time consuming and costly, the entry of new players such as Yoco and others into the market means card machines are now viable for businesses that previously could not afford them or did not qualify for them. For more information, go to www.getyoco.co.za.
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