A new twist on traditional cash transactions, Cash as a Service integrates cash into your digital payments workflow to deliver numerous benefits for your company.
March 14, 2023
In our previous article about Cash as a Service (CaaS), we examined how CaaS works and how it drives repeat business by optimizing the customer journey. In this article, we’ll dive into the direct benefits of Cash as a Service for your business.
(For an overview of how Cash as a Service works, click here.)
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CaaS reduces risk
A primary benefit of the elimination of cash from your physical stores is the reduction of human risk for your company. Whether intentional or unintentional, internal or external, human risk comes in many forms. As long as cash is present, the risks cannot be fully eliminated, regardless of the extent of implemented controls. The total absence of in-store cash, however, effectively addresses all of these risks, and reduces operating costs by pushing the risk downstream to the disbursing party. In the case of KyckGlobal’s CaaS product CloudCash, KyckGlobal clients enjoy the extensive risk protection protocols of two of the most trusted brands in business: Walmart and NCR. By routing your cash transaction to these trusted enterprise endpoints, your business can minimize its own risk – and the associated expenses.
CaaS can power your e-commerce strategy
The migration of commerce from in-store to online has been growing steadily, according to the US Dept of Commerce. Whether your business is pursuing a strategy to diversify revenue streams or reduce operational expenses, Cash as a Service can help your business to convert in-store customers into online customers. CaaS routes customers to the nearest participating retail endpoint rather than your physical store. For instance, KyckGlobal serves numerous specialty consumer finance firms that previously required a borrower to go to a physical store to originate a loan and receive borrowed funds. Those same firms can now originate loans online, with customers completing the exact same workflow from the comfort of their own home – and then traveling to an Walmart just blocks away to pick up borrowed cash. The result is a reduction in the operating cost of your physical stores, and an optimized customer experience… not to mention a massive expansion of the lender’s potential customer pool. (see the example in the previous article of how a Denver business can expand their footprint from four stores to 160+ locations with CloudCash)
CaaS improves financial visibility & reduces support escalations
Innovative companies are always looking for faster ways to access their company’s data to inform business strategies and identify trends. It’s bewildering to learn that one out of three B2C payments are still made by physical check – providing almost zero visibility to the issuing company. Similarly, transacting with actual cash in physical stores also has diminished visibility, as the central finance team must wait until cash deposits are made to access transaction data.
Cash as a Service provides real-time visibility on the status of cash transactions, giving you the valuable cash flow data you need to drive your company’s competitiveness. And – your newfound visibility into the status of payments delivers yet another valuable benefit: the elimination of customer inquiries about the timing of payment delivery. Operational support is among the costliest line items incurred by consumer-facing businesses, and CaaS’ instant transaction speed can resolve a primary source of your help tickets.
CaaS reduces administrative costs
Cash-active businesses follow the same routine at least twice per shift: Verify the safe, count the register bills, and prepare the deposit. These tasks are exceedingly expensive, requiring a great deal of valuable staff admin time. Cash as a Service eliminates cash from your physical stores, allowing you to reduce operational costs with fewer staff hours, or convert that valuable admin time into customer-facing activities that produce revenue.
CaaS simplifies the payment workflow
Cash as a Service truly shines when it’s offered as one payment method among many. For instance, with CloudCash by KyckGlobal, your customers and contractors can select cash – or PayPal, Venmo, Push to Card, ACH, paycard, and more. You define the array of payment types, which is then exposed to your customers, and the customer selects their payment method shortly after you’ve created the payee’s account. Regardless of which type they select, your company’s workflow is consolidated because all payment types originate from the same funding account and the same point of reconciliation.
Having cash as just one of several payment types also means that CloudCash reports are inclusive of ALL offered payment types – including cash. Payment activity is indicated in real time, giving you total visibility across all payment methods. This gives you X-ray vision into your company’s data and empowers you to make well-informed decisions.
Conclusion
Cash as a Service is an innovative and cost-effective solution to cash transactions for businesses that reduces risk and overhead, improves the customer experience, and delivers greater visibility. When assessing Cash as Service providers, there are a few points you’ll want to consider carefully. Specifically, you’ll want to examine the number of endpoints in the provider’s network, and the proximity of those endpoints to your customers. The vendor should also be able to provide your company the ability to pay out in cash and accept cash payments. These components will ensure that your firm realizes the many benefits of Cash as a Service – both for your company and your customer.
