Preparing Your Business for a Cashless Future

Posted May 21, 2025

In AndroidPay, ApplePay, Contactless Payments, Credit Card Processing, e-Commerce, Electronic Checks, Merchant Service, Next Day Funding, Online Gateway

The way customers pay is changing fast. By 2025, over 50% of U.S. transactions are projected to be contactless, driven by digital wallets like Apple Pay, Google Pay, and emerging options like Buy Now, Pay Later (BNPL). For small business owners—whether running a retail shop, café, or e-commerce platform—this shift toward a cashless future isn’t just a trend; it’s a make-or-break moment. Customers expect quick, secure, and flexible payment options, and failing to adapt risks losing sales to competitors who do. Here’s how to prepare your business for this cashless wave, with tips to upgrade affordably and avoid costly pitfalls.

The Cashless Surge in 2025

Cash is fading—only 16% of U.S. transactions were cash-based in 2024, per industry reports, and that’s shrinking. Contactless payments, fueled by smartphones and tap-to-pay cards, are taking over due to their speed, convenience, and security. Inflation and tariff-driven cost hikes in 2025 (e.g., 25% on Mexican imports) also push consumers toward digital payments to stretch budgets via BNPL or rewards. For small businesses, embracing this shift means capturing more sales and staying relevant—but high processing fees can slow you down if you’re not careful.

1. Embrace Digital Wallets for Speed and Trust

Digital wallets like Apple Pay, Google Pay, and Samsung Pay are no longer niche—they’re mainstream, with 60% of U.S. consumers using them regularly in 2024. They’re faster than chip cards (3 seconds vs. 10) and safer, using tokenization to protect data. For customers, it’s a seamless tap; for you, it’s fewer abandoned carts and higher trust.

Tip: Upgrade to NFC-enabled terminals or gateways that support wallets. Most modern POS systems (e.g., Verifone, Square) include NFC—check yours or ask your processor for compatible options.

2. Add Buy Now, Pay Later to Boost Sales

BNPL services like Affirm and Klarna are exploding, letting customers split purchases into interest-free payments. In 2025, BNPL is projected to drive 10% of e-commerce sales, and small retailers are jumping in to compete with big chains. It’s a low-risk way to increase average ticket sizes—think a $100 CBD oil sale becoming $150 with add-ons. Leap also offers these services all bundled into your merchant account without having to use a seperate 3rd party company. This means you get paid faster, everything is bundled into one statement/management system.

Tip: Choose a processor that integrates BNPL seamlessly into your checkout, online or in-store. Review fees carefully—some providers charge extra for BNPL transactions.

3. Adopt Mobile POS for Flexibility

Mobile POS systems (e.g., card readers like Ingenico DX series and PAX POS) let you accept payments anywhere—pop-up shops, markets, or in-store lines. They’re ideal for small businesses needing agility, especially during 2025’s holiday rush (sales up 5% projected). Customers love the convenience, and you gain flexibility to scale without fixed terminals.

Tip: Pick a mobile POS that supports contactless payments and integrates with your existing setup. Avoid systems with high per-transaction fees that eat into profits.

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4. Upgrade Affordably to Avoid High Costs

Transitioning to cashless can feel daunting, especially with equipment costs or complex integrations. Big-box processors like Square or PayPal often charge 2.6-2.9% per transaction, plus hardware fees, which hit hard as cashless volumes grow. Look for processors offering free or low-cost terminals and transparent rates—1-2% can save thousands yearly.

Tip: Ask for free terminals or leasing options, and prioritize interchange-plus pricing over flat rates for long-term savings. Test new systems on a small scale before full rollout.

5. Educate Customers to Drive Adoption

Some customers—especially older demographics—hesitate to use digital wallets or BNPL due to unfamiliarity or security concerns. In 2025, education is key to boosting cashless adoption. Simple signage (“Tap with Apple Pay!”) or staff prompts (“Want to split this with Buy Now Pay Later?”) can ease fears. Highlight security benefits, like encrypted transactions.

Tip: Train staff to explain cashless options confidently, and use social media (e.g., social media posts) to showcase how easy and safe your payments are.

Real-World Impact

A small vape shop struggled with cash-only sales, losing customers who preferred digital payments. High fees (2.9%) from a big-box processor made upgrading seem impossible. Switching to a cashless-friendly provider with free terminals, 1.5% rates, and BNPL integration increased sales 20% in three months. Customers loved tapping wallets or splitting purchases, and the shop saved $2,000 yearly on fees—reinvested into inventory. Embracing cashless wasn’t just modernizing; it was growth.

Bonus Tip: Watch Out for Fee Traps

Cashless payments bring volume, but also higher fees if you’re not vigilant. Beyond percentage rates, watch for gateway fees ($0.05-$0.25 per transaction), monthly minimums ($10-$50), or BNPL surcharges. A shop processing $50,000 monthly at 2.9% pays $1,450 in fees—dropping to 1.5% saves $8,400 a year. Negotiate rates and explore cash discount programs (3-4% off for cash) to offset card costs, especially for hybrid cash/card businesses.

Leap Payments: Your Cashless Future Partner

Preparing for a cashless future shouldn’t break the bank or your spirit. At Leap Payments, we empower small businesses to thrive with support for all payment types—digital wallets, BNPL, cards, and more—ensuring you never miss a sale. Our free PAX A920 terminals* (*for qualifying merchants) eliminate upfront costs, while rates lower than Square or PayPal (often 1-2% vs. 2.6-2.9%) and cash discount programs save you thousands. With same-day funding, fast approvals, and seamless integrations, we make cashless easy and affordable. Ready to tap into 2025’s payment revolution? Visit LeapPayments.com to see how switching can cut costs and boost your business.

Embrace the Cashless Wave

The cashless future is here, and 2025 is the year to adapt or fall behind. By embracing digital wallets, BNPL, mobile POS, affordable upgrades, and customer education, you can capture more sales and delight customers. Leap Payments is your partner to make it happen—affordably and reliably—because your business deserves to shine in a cashless world.

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Logan McAuliffe

Merchant service expert, Logan McAuliffe, is a marketing writer for Leap Payments. His interests include playing sports, music and graphic design. Leap Payments is the industry leader in credit card processing and merchant services, offering both high-risk and traditional solutions.