Opinion: Going cashless – the future of transacting

News agency Bloomberg recently reported that, “The Bank of Korea is planning for a cashless society by 2020”. Sweden too is planning to go cashless in the next five years.

Often we attend events where cash transactions are limited and we have to either forfeit the purchase or be inconvenienced by trying to find an ATM.

Taking the evolving needs of our customers into account, Absa partnered with third parties to implement a cashless environment at Absa-sponsored events across South Africa. The app-based platform enables customers to initiate payments via credit and debit card directly to merchants, thereby eliminating the challenge to scramble for cash and exact change when attending events.

Since its inception, Absa’s cashless system has now successfully been used at the US Woordfees, KKNK Oudtshoorn, Oppikoppi Festival, Mumford and Sons 2016 SA concerts, as well as some of the 2015 and 2016 KAMERS/Makers events.

As an example, the popular KAMERS/Makers events – a celebration of local design, craft, art, music, food and wine – provides exhibitors with exclusive agnostic point of sale facilities. Visitors have the choice to either use their own debit and credit cards for purchases, but they can also opt to purchase an exclusive KAMERS/Makers shopping card for R15 should they only be carrying cash or not have a card with them to pay for their purchases.

For shoppers’ ease, cash is loaded onto these cards and then they can be used for all payments at the event, using a fast and hassle-free tap and go system!

Carrying cash may get in the way of the experience of an event for the following reasons:

Cash is finicky

Handing over cash in exchange for a boerewors roll or a bunny chow is possibly one of the most awkward and frustrating experiences.

In one hand, you are receiving a tasty meal, while in the other you are given your change, but you don’t have a third hand to get your wallet out and put the change in, not to mention having to carry your drink too.

Cash is expensive

Receiving payments in cash can be risky for merchants and expensive to handle. At many festivals and events, stands for merchants remain overnight. Not only would they need a safe place to store their money, but it might need to be big enough to retain an entire weekend of earnings.

Longer queues

Anyone who’s been to a festival or major event knows the pain of yet… another… queue. As a merchant, the time it takes to handle cash payments costs you valuable time. Even if your stall has the best tasting Samoosas on the entire site, chances are you risk losing your queue of customers to competitor stalls with shorter queues.

Running out of cash

Some music festivals as an example are located very far from ATM machines and merchants lose out on a lot of business from customers who may not be carrying enough cash with no ATMs in sight for them to top up, or those who simply prefer to pay by card.

The dangers of cash

Handling cash at an event can hold danger for both merchants and customers with criminals always on the look-out for a target.

KAMERS/Makers has a card-not-present (CNP) e-commerce solution through Shopstar, which offers clients the ability to make card payments through their website. This solution is facilitated by Payfast and acquired by Absa Payment Acceptance.

The final KAMERS/Makers event of the year will be held in Irene, Pretoria between 28 November and 2 December. “Come and experience style, fashion, good food and sparkling wine enabled by convenient and safe cashless payments,“ says Aldo Laubscher, Head of Payment Acceptance Africa at Barclays Africa.

“Cashless transactions offer consumers the benefit of a quick transaction: a cash payment takes much longer, while processing a contactless transaction only takes 3-5 seconds at most,” he adds.

After successfully introducing a cashless system at KAMERS/Makers 2015 Irene, these events are now staged in a completely cashless environment. This allows visitors to transact safely and conveniently as cash is no longer available as a means of payment at these events.

While it’s highly unlikely that we will ever see the end of cash in South Africa, or that we will ever become a totally cashless society, the advantages of cashless transactions replacing some cash deals are massive and the benefits speak for itself.

A cashless enabled society is on the horizon – and South Africa is undoubtedly right up there with the rest of the world.

Staff Writer