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:
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.