ARTICLE
Unlike developed markets where electronic payments account for the majority of transactions, countries in emerging markets have a different experience. For example, in Pakistan, retail is the third largest sector accounting for 18% of Pakistan’s GDP. The transaction cost of cash is zero, but when cash transactions are processed via formal payment channels, they impose high fees, costing emerging market businesses a fortune. In Nigeria, according to payments data released by Jumia, 67% of Jumia shoppers in Nigeria preferred to pay by cash-on-delivery. Only 27% of online retail payments were card-based. For such reasons much of the retail industry in emerging markets remains predominantly cash-oriented, with wholesale and retail purchases made in cash.
Although cash imposes zero direct transaction costs by bypassing formal payment channels, cash exposes businesses to greater levels of risk: cash leakages that significantly affect overhead costs due to manual cash management, and substantially reduced visibility. This directly impacts the ability for the business to raise financing, should this ever be required also.
Cash deposit machines can be a valuable tool for retailers, as they can provide a number of benefits, including:
Increased convenience for customers: Cash deposit machines can make it easier for customers to deposit cash into their accounts, which can increase customer satisfaction and convenience.
Reduced risk of theft and loss: By using cash deposit machines, retailers can reduce the risk of theft and loss associated with handling large amounts of cash. This can help to improve security and reduce the potential for loss.
Improved cash flow: Cash deposit machines can help retailers to improve their cash flow by providing a convenient and secure way to deposit cash into their accounts. This can help retailers to manage their finances more effectively and ensure that they have the funds they need to support their operations.
Reduced workload for staff: Cash deposit machines can help to reduce the workload for retail staff by automating the process of depositing cash into accounts. This can free up staff time for other important tasks, such as providing customer service and managing inventory.
Enhanced security and compliance: Many cash deposit machines are equipped with advanced security features, such as fraud detection and anti-money laundering technology. This can help retailers to enhance the security and compliance of their operations, which can be particularly important for businesses that handle large amounts of cash.
Real-time visibility: With automation and instant digitisation, cash machines provide an opportunity for businesses to establish a birds-eye view of the financial performance in real time – be it an individual retail store, or a chain of stores across the city or country. This enables businesses to revisit their financial strategy and make smarter investment decisions. Executives and store managers can ensure the progress of KPIs and restructure daily decisions based on real-time data.
Loop Cash Deposit Machines
Overall, cash deposit machines can provide a number of benefits for retailers, including increased convenience for customers, reduced risk of theft and loss, improved cash flow, reduced workload for staff, and enhanced security and compliance and real-time visibility. Loop cash deposit machines (LCDMs) help businesses accept cash, ensure real-time accountability, allow faster access to finances and provide security from the ground up. Moreover, Loop also provides insurance on your cash deposited in the Loop machines installed on premise and while your cash is in transit on its way to your chosen bank. Talk to sales today and start using Loop Machines.