Going cashless doesn’t necessarily mean 'no cash' at all, but by offering one non-cash method that can be used to pay for goods and services across your organisation and beyond offers significant benefits for you, your staff, students, parents and third party suppliers. A good cashless payment solution will enable integration with third party systems to provide unification of transactions into one transaction engine.
Open or closed loop?
Cashless payment solutions can operate on either a closed or an open loop. The Payments Council has described the differences when it comes to card payments (although other mechanisms can also be closed or open loop). ‘Some prepaid cards are ‘open loop’ and can be used with face-to-face and online retailers. They may appeal to those who wish to manage their budgets, and to certain businesses wishing to manage their costs… Closed loop cards are linked to single or a limited number of retailers’.
To date where organisations have adopted a cashless solution these have often been limited to catering environments. However, a sophisticated cashless payment solution will permit integration with as many applications as required reaching beyond financial transactions to systems for identity verification or information exchange.
All transactions recorded in one place
No longer must important information be held in hard to access silos spread across campus, A single transaction engine delivers detailed management information from one source and is easily used to inform decision-making, enhance student engagement, increase income and cut costs. Detailed user-level information can be used to deliver targeted promotions – not just for marketing purposes but also for public health and other issues related to staff and student wellbeing.
The benefits of all this are easy to see, from the obvious reduced costs of receiving, counting, insuring, storing, reconciling and transporting of cash to the reduced risk arising from theft, fraud and counterfeiting. An 8% reduction in operating costs has been cited by some organisations as a result of going cashless. A closed loop system will keep spend on campus and may boost revenue by up to 20% and cut the cost of transactions (merchant services). Fewer EMV merchant terminals will also mean a reduction in POS and transaction costs.
Enhance your user experience
For students, particularly, financial management is easier with the need to remember to carry cash reduced. Similarly, for staff the reliance of having cash on them to pay for things like catering is removed and because funds are held in an account and not on the card, lost or stolen cards are of no value to others. As cards are managed by the organisation and not by a bank or building society, they can be cancelled and re-issued quickly. Staff and students can cancel their own cards via their online management portal.
For third party suppliers such as a catering contractor a closed loop system helps keep spend within the organisation, with promotions and rewards easily offered to increase footfall/spend. Stock management, administration and reporting is also simplified for them.
If you want to know more about going cashless or reducing the amount of cash you use in your organisation the resource section of our website has plenty of further reading – click here.
If you would like to talk to us about how we can help you on your cashless journey please call us on 01494 565066