New research has revealed that 50% of small businesses have either become cashless or plan to as a result of Covid-19.
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, the business banking app, 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:
- A retirement park homes company now provides home garden offices
- Pubs now acting as local shops and food delivery services
- Dance and fitness classes going online
- Suppliers to events shifting to supply consumers direct
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.