Accept Cards UK Launches Tech-Enabled Cash Payment Solution to Boost SME Cash Flow

Accept Cards, the UK’s largest independent payments broker, has introduced an innovative cash payments solution designed to address the growing demand from Small and Medium Enterprises (SMEs) for instant and affordable cash deposits. This new service, dubbed Accept Cash, leverages Smart Safe technology to enable businesses to deposit cash into a smart safe and settle it into their bank account on the same day.

Key Features of Accept Cash

• Smart Safe Technology: Businesses can deposit cash into secure smart safes, eliminating the need for physical bank visits. This is particularly beneficial given the rise in high street banking closures and the increasing demand on Post Office services.
  
• Same Day Settlement: Accept Cash allows for same-day settlement, which is a significant improvement over traditional cash deposit methods. This feature is especially useful for franchisee networks, where the ability to split settlements can streamline financial operations.
  
• Cost Savings: According to Accept Cash, a business with an average monthly revenue of £80,000 could save up to 73% in cash processing costs by using this service. This is crucial as cash transactions remain a significant portion of total transactions, with the British Retail Consortium estimating that cash accounted for 19% of total transactions in 2023, up from 15% the previous year.
  
• Detailed Reporting and Accountability: The service includes detailed reporting and accountability features, enhancing transparency and efficiency for SMEs and enterprise businesses. This is complemented by open banking technology, ensuring secure and reliable transactions.

Market Context and Demand

The launch of Accept Cash comes at a time when cash transactions are holding firm despite the cost of living crisis. The UK saw a rise in cash payments last year, highlighting the ongoing need for efficient cash management solutions. Retail, convenience, and hospitality sectors are expected to be the primary beneficiaries of this service due to their high customer demand for cash payment options.

Challenges Addressed

Richard Bradley, CEO of Accept Cards and Accept Cash, emphasized the challenges SMEs face with traditional cash deposit methods. “The cost and time implications of depositing cash are currently squeezing SMEs financially and operationally. It takes time out of a working week for a staff member to cash up and physically go to a bank, which is increasingly difficult given the rise in high street banking closures. The fees associated with depositing cash can be very high, making it difficult for SMEs to balance the books and forecast cash flow,” he stated.

Innovation and Partnership

Accept Cash is the first UK card payments company to venture into cash solutions using new technology. This initiative is supported by Martin Smith, Strategy & Solutions Director at Cennox, who will work alongside the Accept Cash team to implement and roll out the new technology. Smith noted that innovation in the UK’s cash payments sector is much needed, and many countries have already adopted similar approaches years ago. The Accept Cash solution aims to make cash a more viable payment choice by reducing its costs, which are currently almost double those of card payments.

Impact on SMEs

The new service is expected to encourage businesses that have moved away from cash to reconsider accepting it, given the convenience and cost savings it offers. This aligns with the broader trend of providing consumers with the choice of both cash and card payments, which is essential for SMEs that form the backbone of the UK’s economy.

Expansion and Employee Ownership

The introduction of Accept Cash is part of Accept Cards’ broader strategy to innovate and expand its services. Earlier this year, Accept Cards became employee-owned through an Employee Ownership Trust (EOT), allowing employees to take ownership and steer the direction of the business. This move is expected to further expand the company’s team of 14 employees as it continues to support businesses of all sizes with a range of payment solutions, including merchant services, card machines, online payments, and more.

Broader Payment Landscape

In the context of the evolving payment landscape, it’s important for SMEs to consider a mix of payment methods to cater to diverse customer preferences. While card payments are becoming increasingly dominant, with 354.8 million credit card transactions in the UK in September 2023, cash remains a significant component of transactions. Accepting multiple payment methods, including card payments, digital wallets, and cash, can enhance sales, customer reach, and operational efficiency. For instance, card payments offer security features, faster checkout processes, and the ability to handle larger transactions, which can be beneficial for SMEs.

However, the integration of smart safe technology and same-day settlement through Accept Cash addresses specific pain points associated with cash handling, making it a valuable addition to the suite of payment solutions available to SMEs.