Why Driving Out Cash is Good For Business

Why Driving Out Cash is Good For Business 

Fishing through the change in cup holder to feed the meter or pulling out a $5 bill for the stadium parking attendant is becoming a thing of the past.

The parking industry has been inching away from its traditional cash-heavy operations. Each passing year sees a surge in the adoption of cashless parking payment systems

While there are challenges in the journey to becoming cashless, the rewards in terms of efficiency and user experience outweigh the hurdles. 

The Future of Parking is Cashless

The shift towards cashless parking is in sync with broader global trends. While the benefits, from speed to security and financial gains, are undeniable, it’s essential to navigate potential challenges wisely. 

As with any significant shift, preparation is the key. With proactive communication, training, and the right technological partnership, businesses can make the transition smoother while gaining significant advantages.

With the right approach and the ideal technology partner, sports and entertainment companies can redefine their parking experience. 

Cashless Trends

The surge in cashless transactions isn’t limited to the parking industry; it’s a global phenomenon. 

A Federal Reserve study noted a decline in cash transactions from 30 percent in 2017 to a mere 24 percent in 2020. Similarly, a Pew Research Center survey disclosed that by 2021, almost 29 percent of Americans had shifted away from cash for their weekly purchases. Whether buying groceries or movie tickets, many people nowadays opt to pay via mobile phone or contactless credit card as opposed to cold hard cash. It’s evident cashless is the future, and parking lot payment systems are no exception.

Benefits of Going Cashless

There are countless benefits to transitioning to a cashless parking payment system. Here are a few of the main ones: 

  • Speed: Time is money, and cashless systems respect that. Credit and prepaid transactions are about six times faster than cash transactions. Furthermore, tap-to-pay options can whittle down transaction times to just 3-5 seconds.
  • Increased Security: Cashless operations eliminate risks such as internal thefts, potential robberies, and challenges with counterfeit bills. 
  • Financial Benefits: The move to cashless can be financially rewarding. It reduces costs related to cash handling, obviates the need for armored transport, minimizes errors, and expedites fund processing times. Employees no longer needed to stay hours after events to count and balance cash, thus reducing overtime costs.
  • Enhances the Visitor Experience: Customers find that cashless transactions shorten the time it takes to park. With less time spent on parking, customers have time to make purchases at concessions.
  • Inventory Management: Cashless systems provide real-time data, helping to identify available inventory (e.g., parking spaces) during events.

Potential Friction 

The path to cashless isn’t without its bumps. From guest reactions to technical glitches, transaction fees to regulatory compliance, businesses face a myriad of concerns. 

People might resist change because they have a habit of using cash, fear the complexity of a cashless system, or worry about fraud and hidden charges. Overcoming these and other challenges demands a strategic approach.

As society leans more towards cashless transactions, businesses will face less pushback. While technology is never perfect, there are many highly reliable systems available. Opting for PCI-compliant devices will ensure that your operation aligns with top-notch security standards.

Some organizations worry about transaction fees, but incorporating these taxes and fees into the cost of parking allows you to pass the extra charges to the customer. 

How to Prepare

Before taking the leap into the cashless realm, businesses need to ensure they’re prepared. Organizations that create a plan for the transition have a more seamless experience. Key elements of the transition might include:

  • Communication: Keep patrons in the loop. Regularly update them via emails and ensure signage clearly indicates the shift towards cashless.
  • Education and Training: Parking attendants should be well-versed with the new payment systems. An emphasis on training and a positive approach to guest interactions plays a crucial role in achieving higher satisfaction rates.
  • Offer Choices: While emphasizing cashless, offering both prepaid and on-the-spot payment options caters to varied customer preferences.
  • Incentives: Sweeten the deal. Offer discounts on prepaid parking or card payments, making them a more attractive option compared to cash.

Are You Ready to Drive Out Cash?

Transitioning to a cashless parking lot payment system demands attention to detail and cutting-edge tech solutions. This is where choosing an experienced, knowledgeable parking services provider becomes vital. 

With our extensive expertise, Parkhub can help you ensure the transition is smooth and efficient. Our comprehensive solutions help businesses go cashless while enhancing the customer experience.

Want to learn more about how we can help your venue embark on the journey to a cashless future? Book a demo to learn more about how we can help you benefit from cashless parking while improving the customer experience.