Some businesses only accept cash, and they have reasons for that. While credit and debit cards are convenient for customers, merchants have to pay a processing fee every time their customers use one. The fee usually isn’t too big, but it does cut into profits, plus you often have to pay other fees and either buy or rent a card reader. Cash is so much simpler by comparison, plus you can always partner with a local bank to put an ATM by your front door. However, “cash only” might not be a viable option in the future.
Young People Use Plastic
The Millennial generation is reaching the age where they’ve established their career and they’re growing their families. They have a lot of spending power now, and that power is only increasing as more members of their generation enter their late 20s and early 30s. That means you have to pay attention to their payment trends:
- The vast majority of Millennials are smartphone users, and they enjoy using their devices for banking, online shopping, and buying things in person using the wallet apps that come with both major operating systems.
- Even without their phones, Millennials have fully embraced electronic money and tend to use debit or credit cards for most purchases, including small purchases at convenience stores and restaurants.
- More than 80 percent of Millennials have at least one credit card, and 27 percent say they use them to spend a majority of their disposable income.
Young People Shop Online
It’s hard to argue with the convenience of online shopping. From the comfort of your own home or the nearest café, you can see what’s available, you can read user reviews to see if it’s any good, and you can buy it right away by entering your credit or debit card information and have it shipped right to your doorstep (and that’s only if you can’t get it as a digital download). Conveniences like this are encouraging shoppers of all ages to spend their income online, but these online shops need a way to process credit and debit cards.
Young People Love Choice
Signing up with a merchant processing company isn’t just about giving yourself access to what’s increasingly the most popular payment methods, it’s also about giving your customers options when it comes to how they pay you. When you’re able to accept credit cards, debit cards, cash, electronic transfers, Bitcoin, and anything else a customer might bring to your register (online or physical), it shows that you care about your customers’ needs and wants. Customers appreciate merchants who appreciate them, and it encourages them to come back again.
Accept Plastic With Our Help
That’s why we at Global 1 Wholesale Merchant Services we do our best to help our clients process as many payment methods as possible. Electronic and plastic money is still growing in popularity, and we want our clients to be prepared for a future (or even a present) where cash in person and direct transfers online are a minority of your transactions. Cash is still king so far as profits go, but credit and debit are the most convenient and most used by young customers. Apply for a merchant account today.