Should Your Business Go Cashless? Pros and Cons to Maximize Growth

If you’re thinking about moving your business toward cashless payments—or just reducing how much you rely on cash—you’re definitely not alone. The payment options you offer customers aren’t just operational details, they’re strategic choices that can shape your ability to attract and keep the right customers, boost revenue, and grow into new markets.

Cash still matters for many customers and can be simpler in some situations. But cash payments can also slow things down, complicate your accounting, and hold back your potential reach. On the flip side, accepting cashless payments through your website or a digital marketplace gives your customers more ways to pay, greater convenience, and streamlined buying processes that match what customers expect today.

Of course, fully transitioning to digital payments and procurement means weighing considerations like transaction fees, customer preferences, and regulatory requirements.

In this article, we look at the key benefits and challenges of cash and cashless payments, helping you understand how the right payment mix can support your business growth and customer satisfaction goals. Whether you’re currently cash-focused or curious about going digital payments, this balanced look will help you decide what’s best for your business today and beyond.

Understanding cash vs cashless payments

Let’s start by clarifying what we mean by cash vs cashless. 

Cash payments involve actual bills and coins handed directly from customer to seller. This is still common in small shops, markets, and service businesses where quick, face-to-face transactions matter most. Cash requires no digital infrastructure and is generally universally accepted, making it useful where technology adoption is low or customer preferences lean that way.

Cashless payments cover a broad range of digital options: paying by card on a POS device, using digital wallets like Apple Pay or Google Wallet, or buying online through a website or a digital marketplace. For businesses, cashless purchasing also includes recurring subscription services, invoicing with built-in payment options, and procurement systems that automate approvals and track spend.

Understanding these differences helps you match payment methods to your business model, customers, and growth goals.

Adapting to changing buyer preferences

The way businesses buy products and services is changing fast—mostly because buyers’ expectations are evolving and digital tools keep getting better. More than ever, customers want a smooth, flexible purchasing experience that saves time and avoids headaches.

This trend is powered largely by younger decision-makers—millennials and Gen Z now make up over 70% of B2B buyers. These buyers grew up online and expect buying for work to be as easy and personalized as shopping for themselves. They want to research, compare, and buy on their own terms, anytime and anywhere.

Along with dramatic technology leaps, these demographic changes have contributed to a seismic shift in how and where businesses are doing most of their purchasing. Gartner estimates that by the end of 2025, 80% of B2B sales will be digital. And B2B marketplaces are the fastest-growing digital sales channel, with 100% year-over-year growth in 2023 alone.

To keep up, small businesses need to understand these habits and make buying easy and convenient for their customers.

Cash vs cashless: Weighing your options

Cashless payments are now the dominant accepted method for business sales and procurement, thanks to technology innovation and big gains in efficiency, security, and automation.

According to the Federal Reserve's 2024 annual cash survey, only 16% of transactions used cash.

In card-dominated markets such as the United States, where cash transactions represent just 5 percent of the value of consumer payments, cash usage will continue the gradual decline initiated by the COVID-19 pandemic.
McKinsey Global Payments in 2024

But like most trends, the shift toward a cashless society in the United States has sparked mixed reactions. A 2024 survey by CardRates.com tells us that while 70% of people believe we're moving in a cashless direction, 77% think the U.S. shouldn’t go fully cashless because it could be a disadvantage to those who are underbanked or unbanked.

Switching to cashless isn’t like just flipping a switch—it means understanding how both cash and digital payments affect your operations and growth.

Why cash still matters

Cash is simple, familiar, and still accepted in many purchasing situations. It costs nothing in transaction fees and keeps things easy for quick, in-person sales. It also works well if you have customers or suppliers who don’t use digital payments.

But there’s a downside. Accepting cash payments means managing risks like theft and fraud, and time-consuming manual work to count, deposit, and reconcile money received. Cash transactions don’t give you the important data insights that digital payments do, making it harder to track and optimize spending. And cash-only payments prevent you from selling online and reaching customers outside your immediate area.

Why going cashless is worth it

Going cashless can save you money and time. You no longer have to deal with the costs and fees associated with handling paper money. Banks may charge fees, for example, for counting and accepting coin deposits, and you may need to pay for armored car services if you receive a lot of cash payments. Digital payments speed up checkouts and accounting with automatic tracking and real-time visibility into your finances.

Security is another important consideration. Cashless payments are secured through encryption, two-factor authentication, and partnerships with reputable payment providers, reducing the risks of theft and fraud associated with physical cash.

And cashless systems integrate seamlessly with your other systems, like ERP software, creating a seamless and cohesive operational environment. 

But perhaps most importantly, adopting cashless payments lets you meet your customers where they are today—online, where cash isn’t an option. Meeting your customers’ expectations for convenient, anytime buying with multiple payment choices is the way of the future.

Things to watch for

Going fully cashless means investing in hardware, software, and training. Some customers may prefer cash and resist the change. Transaction fees can add up, especially for lots of small payments. And you’ll need to stay on top of data security and regulatory compliance.

Finding the right balance between cash and cashless payment options is key to making your customers happy and helping your business grow.

Upping the ante: How B2B marketplaces expand your market reach

If you’re leaning into cashless payments, don’t overlook the power of online B2B marketplaces to grow your reach. These platforms connect buyers and sellers across industries and regions, opening doors to thousands or even millions of potential customers.

Beyond just connecting buyers and sellers, B2B marketplaces enable businesses to easily offer multiple products and services in one place. Sellers can create bundled offerings that combine solutions into a single sale, simplifying purchasing decisions and increasing average order value. Meanwhile, both buyers and sellers benefit from a smooth, unified checkout experience that reduces friction, speeds up payment processing, and improves overall satisfaction.

For sellers

• Offering multiple cashless payment options attracts more buyers with diverse preferences

• Marketplaces give your products major exposure via their catalogs, making it easier to get discovered

• The ability to create and sell bundled products in a single transaction increases your sales potential and your ability to serve diverse customer needs efficiently

• Simplified, seamless checkout processes minimize abandoned carts, streamline your order management, and improve your buyer experience and conversion rates

• Fewer administrative hassles, faster payments through a unified billing platform, and better cash flow

• Marketplace protections reduce risks of non-payment or fraud, offering you peace of mind

For buyers

• The ability to purchase multiple products and services together in one streamlined checkout saves time and reduces administrative hassle

• Digital payments reduce time spent on manual processes like handling checks or cash

• Automatic record-keeping simplifies reconciliation and tax time

• Currency conversion and cross-border transactions happen smoothly, helping you expand globally

• Spending visibility, analytics, and control improve budgeting and approvals

Does cash still have a place in your growth strategy?

Here’s the bottom line: businesses embracing cashless payments and digital procurement are better equipped to run efficiently, control finances, reduce risks, and tap powerful growth insights. Representing only 5% of payments today, cash still has a role here and there, but its use is increasingly limited.

We’re in a digital-first world, but it’s about what works for you. The right payment strategy can be a game-changer for growth, market reach, and success. The best approach is a thoughtful balance that fits your customers, business setup, and growth plans. By making payments faster, safer, and more flexible—and offering your services through a digital marketplace—you can unlock new customers, enter fresh markets, and stay competitive.

Next steps to a cashless business

1.Identify areas in your business where you can go cashless

Start by looking closely at where you currently accept cash and where digital payments can simplify things. For example, if you do sales or services in the field, consider using wireless POS (point-of-sale) devices or mobile payment solutions that let you accept cards and digital wallets on the go. This helps you capture sales anytime, anywhere, without cash hassles.

2.Explore B2B marketplaces to grow your customer base

B2B marketplaces like the AppDirect Marketplace provide a platform where you can showcase your products to thousands of potential buyers who prefer easy, digital purchasing. Selling through marketplaces accelerates your market reach and benefits from integrated cashless payment options.

3.Leverage payment data to optimize your business

Once you start accepting more cashless payments, use the insights they generate to understand your customers better, manage cash flow, and streamline operations. Look for patterns in purchasing behavior or peak sales times that can help you tailor offers and improve your service.

Updated May 15, 2025