Businesses are increasingly opting out of accepting cash. London has a vibrant and bustling hospitality scene, boasting countless must-visit restaurants, pubs, and hotels and £46 billion in value, outperforming all other sectors in the UK.
London’s hospitality customers range from locals enjoying cocktails in the city to holiday-makers and tourists – all searching for the best eateries, the most affluent hotels, and the most refreshing pint. And nearly all of them expect to pay by card.
What is London’s Cashless Boom?
London’s Cashless Boom refers to the recent influx of businesses (particularly those in hospitality) throughout London no longer accepting cash as a form of payment. From pubs to restaurants, London’s business owners are turning down physical cash and providing a card-only service.
But what has driven this change? Well, let’s take a look at some of the benefits of a cashless society and you can see for yourself why the move towards cashless is trending.
5 Benefits of Opting to Go Cashless
For those in the hospitality industry wanting to stay ahead, cashless is the future. Here’s why.
Digital Payments Offer Enhanced Security
Card-only payments are faster and more secure. And that’s not accounting for the markup of 0.15% for each cash transaction that sees some of a customer’s payment go straight to the bank.
The infrastructure is certainly there for cashless payments and most customers are enthusiastic about the convenience tap to pay provides over cash.
Card payments make it easier for diners to split their bills and tip safely, without leaving money lying around on tables for waiters to collect. This reduces the risk of robbery to individuals and the businesses they’re paying.
Digital payments also minimise your risk of fraud and money laundering because digital financial transactions can be tracked and recorded. So, you can know where you’re spending your money, how much, and how often.
If you notice any suspicious activity, you can freeze your card so that the issue can be resolved without any further risk to your finances.
Faster and More Efficient Customer Service
We’ve all experienced the frustration of standing in line at the till while the person in front painstakingly counts out their cash. It’s time-consuming and frustrating.
For some businesses, it can even lead to lost custom because those waiting in line become impatient or have other places to be.
Card and contactless payments are typically faster than cash transactions, so staff spend less time counting change and more time making sure the customer experience has been a positive one.
What’s more, efficient payment methods encourage customer retention because you want to return to a place where you had a nice time and could settle your bill quickly and with ease.
Cost Savings to Businesses
When a business no longer handles cash, it saves a huge amount of money in handling, transporting, and storing cash. What’s more, they no longer require their staff to work longer hours just to count and reconcile the cash float against the receipts every day. It’s a huge cost saving.
Better Cash Flow Management
Everyone knows that digital payments process faster than cash. When your business prioritises digital payments you enjoy improved cash flow, avoiding bottlenecks and late payments to vendors and suppliers.
This not only helps things run smoothly, it leads to a better business reputation which only serves you well as you seek to stand out from your competitors.
Improved Customer Experience
Adopting cashless payments can greatly improve the customer experience, providing many of the benefits above and so much more.
When hospitality businesses work to stay ahead of the competition by modernising their operations, they greatly enhance the customer experience, creating a positive impression that leads to repeat business, great reviews, and a glowing reputation.
4 Ways Hospitality Businesses in London Can Stay Ahead of the Curve
Succeeding in London’s hospitality industry can feel like an impossible dream. With so much competition and other brands going above and beyond for their customers, it can be hard to know where and how to fit in.
The good news is that nobody does things quite like you. So, here are our tips to help you stay ahead of the curve in the predominantly cashless city of London.
Leverage the Power of Social Media
Social media is abuzz with hospitality businesses creating a superior customer experience. Whether they’re hosting events, inviting reviews from influencers, or providing a venue for social media content creation, hospitality sectors leveraging the power of social media are on a different competitive tier.
We live in a digital age. Most people spend over 2 hours on social media every day. As a result, your social media account is likely to be the first touchpoint customers have with your business. So, it’s important to make a great impression.
To achieve this, you should prioritise creating valuable, user-generated content. This might look like hosting influencer events or creating spaces in your venue that are photo-worthy to help boost interest and online traction.
We also highly recommend partnering with influencers to get your business seen online by a wider audience. When it comes to promoting your business and winning new customers, social media (done right) can do a lot of the heavy lifting.
Accept Contactless Hospitality Payments
If you run a hospitality business in London and you want to stay ahead, you must adopt modern technology and offer contactless hospitality payments.
We cannot stress this enough. London’s customers expect fast and convenient service, whether they’re buying a pint at their local pub, sitting down for a meal, or taking the train to work.
The easier it is for customers to pay you, the better their interaction with your brand and the more likely they are to return.
Invest in Loyalty Programmes that Really Work
Customer rewards are the creme-da-la-creme for shoppers. Most people want the brands they regularly purchase from to engage with them in a way that benefits them - such as sending coupons, discounts, or free experiences.
If you want to retain great customers, make more money, and keep up with the competition, consider investing in a loyalty programme. Most people are more likely to purchase if there is an offer or discount - particularly if that offer or discount has been tailored to them.
Sell Experiences, Not Services
Londoners aren’t just looking for a great service or product, they’re searching for unforgettable experiences. They want to create memories and enjoy experiences that can’t be mass-produced.
This is the perfect opportunity for your hospitality business to swoop in with a customer experience unique to your establishment. It might be a late-night art workshop, comedy performances, ticket-only open mic nights, or even a secret pub garden that can only be accessed by those ‘in the know’.
When you sell experiences, you’re creating a business model that your customers want to engage with. And the great thing is they won’t want to engage on their own. They’ll want to invite their friends and family, sharing the experience with the people they care about.
Final Words
We hope that in today’s fast-paced digital age, where cashless payments are being fazed out, our tips will help you grow your hospitality business. By adopting modern technology, introducing cashless payments, and selling experiences people want to engage with, you can establish long-lasting customer relationships that see you succeed in even the most competitive business environments.
