Research carried out by 3Gem for Amaiz, the business banking app, has revealed that 50% of small businesses have either become cashless or plan to as a result of Covid-19. Of the rest, over 18% already only took card and just 21% of small businesses have no plans to go cashless.
The acceleration of the cashless society, since the pandemic, has been prompted by evidence that the virus lives on cash. However, even prior to the pandemic, there were signs that cash was dying out in the UK due to customer preference. In March, just prior to the lockdown, Amaiz reported that, of those businesses that only take cash, nearly a third had lost customers because of it. The pandemic is likely to have driven that figure still higher.
Matt Goddard, Head of Acquisitions at Amaiz commented; “Micro businesses have had a very challenging time. They have been forced to pivot and going cashless is one way that they can improve the safety of their employees and customers.”
In addition to going cashless many small businesses have had to change their business model just to survive. These include:
Many of these businesses believe that their new service offering is something that they will continue post-pandemic and, long-term, will have a positive impact on their bottom line.
Matt concluded; “Innovation is so often driven by necessity. Small businesses have faced a uniquely challenging time. We research and speak to business owners so that we can pivot our banking service to better meet their changing needs. Ensuring that our customers have access to cheap and safe payment options is clearly their priority.”
The Amaiz banking app premium account is available at £9.99 per month. However, there is a free version that charges just 20p per outgoing transaction. The app comes with numerous unique features that make it possible for business owners to manage their bookkeeping between customers. There is also the option to include a contactless card reader for a low set up fee and transaction charge. To set up their account a business owner simply has to download the app then prove their ID and their right to work in the UK. There is no credit check so the process can be done at home very quickly.