Last week we announced a partnership with Fiserv to speed payments, in particular cash payments made at a kiosk. Our announcement is getting a lot of industry attention. Why? Because helping businesses move money faster is still a key industry issue. Removing the risk and delay in processing payments, especially cash, can be a critical factor in the success of any business.
“Every retailer views cash as an opportunity until that retailer takes possession of the cash itself. Once accepted, cash becomes a risk to the retailer. That risk presents itself in many ways that include theft, accounting, security and administrative issues” says Kurtis Johnson, Senior Product Manager for Fiserv Inc.
While accepting cash poses some risks, cash remains a desired form of payment for many consumers. According to the most recent data from the Federal Reserve, over 27% of all payments are still made in cash. Consumers use cash for important things such as insurance premiums, gas, electric and water bills, healthcare payments and monthly car loans. If you have been living in a digital payment world, that stat may surprise you. With 6.5% of the population unbanked and another 18.7% underbanked, it is not surprising that many people still turn to cash as a key solution to manage their money. Studies show that we budget better and spend less if we pay with cash vs credit.
Cash is anonymous, universally accepted and if handled efficiently, a very viable way to conduct business. The drawbacks of cash are the time required for a business to physically transport it to their banks, the security risks of carrying large volumes of cash and the opportunity for internal theft or errors in counting cash. All these issues are resolved with our latest version of QuotePro Kiosk combined with CorPoint® from Fiserv. Here’s how it works at an auto dealer and why it offers such a compelling business case:
Typical Manual Process for Accepting Cash at a BHPH Auto Dealership:
- Customers visit the dealership on “Payday” for their auto loan payment, which typically is every Friday or every other Friday of the month.
- Approximately 50% of customers pay in cash.
- For many dealerships who accept in-person payments, customers may have to stand in lengthy lines waiting for a cashier. On a busy Friday, it is not uncommon to wait 10-15 minutes to make a payment, resulting in frustration and customer dissatisfaction. Those lost precious minutes translate into fewer showroom visitors, which means fewer sales.
- Cash must be stored securely and transported to the bank. Security and shrinkage are real concerns.
- Accounting must verify and reconcile the cash, which is expensive.
- Where vaults and armored carriers are used, cash sits idle until pickup time.
New Streamlined QuotePro Kiosk and CorPoint Payment Process
- The Auto Dealership installs a custom wrapped QuotePro kiosk at each location.
- The kiosk interface is available in English and Spanish, it can read the QR code off the customer’s bill and quickly pull up their account. The kiosk accepts cash, card or ACH. Typical payments are processed in less than 60 seconds.
- Each note accepted into the kiosk is interrogated and validated by a casino-grade bill acceptor.
- The CorPoint software facilitates next-business day funding directly to the business’ bank account.
Benefits of the new streamlined process are significant. Here are some of the main advantages:
- Car dealerships who implement kiosks realize savings through significant staffing reductions while increasing sales through higher showroom traffic and retention.
- Accounting departments save time and money through streamlined transactional and reconciliation reporting.
- Cash write-offs from shrinkage are eliminated.
- The business can now reconcile cash, card and checks daily while eliminating all the risks that traditionally accompany cash payments. Cash is deposited in the dealership’s bank account sooner.
- The time customers save by paying at the kiosk and having an interface in both English and Spanish improves customer satisfaction and allows the customer more time in the showroom to look at newer models.
- No employee will ever touch cash again. This additional store safety for your customers and employees is priceless.
As I discussed in my previous article, Cash, Kiosks and the Financially Underserved, self-service kiosks are being used in more and more applications from airports to grocery stores. We are continually looking for new and innovative ways of helping our clients with their cash needs, and more.