According to research from payment service Judo, one in five consumers failed to make a purchase in a shop in the last six months because the retailer didn’t take cards. Some 70 per cent of consumers prefer to pay by card, while 60 per cent say they would spend more with a business that takes cards than one that doesn’t.
There’s a perception among small businesses in particular that card transactions are too expensive to process, or simply not as convenient as cash. However, that need no longer be an issue thanks to innovative products from companies such as Swedish firm iZettle, whose new service allows anyone to carry out a card transaction on their smartphone or tablet. Two devices are offered which can plug into, or wirelessly connect to, the smartphone. One accepts a PIN (and costs £99), while the other takes signatures (£20). Both come with an app installed onto the phone or tablet. iZettle takes 2.75 per cent commission on each transaction. Analytics are available to keep track of payments, revenue and returning customers, which will show if the system is washing its face.
Or is cashless and cardless the way to go – if members could pay via their phone, for example, would this make them more inclined to have an impulsive coffee, or buy a new swimsuit while the endorphins are flowing?
In general, are clubs keeping up with consumer trends? What new technology is coming on-stream that could help operators offer a more convenient service, removing barriers to customers spending money and thereby boosting secondary revenue? We ask the experts.