The potential implementation of mandatory cash acceptance in essential service sectors, mirroring the Australian model, presents a nuanced landscape for SMEB. As a provider of innovative e-money business accounts and digital payment solutions, our primary focus has been on streamlining digital finance for SMEs. However, we are also conscious that cash is still an essential part of the payments landscape and the SMEB Cube cash placement solution infrastructure positions us uniquely to address the challenges and opportunities this shift might bring.
SMEB Cube is a secure and convenient cash placement solution located in accessible community spaces, which directly tackles the logistical hurdles of cash handling for businesses. Customers received real-time notifications of funds and the platform provides immediate notifications upon successful cash placement at a SMEB Cube, ensuring businesses have up-to-date visibility of their funds. We also understand the value of enhanced customer support without chatbots or complicated button pressing scenarios. We equip our support teams to guide clients on using the SMEB Cube for efficient cash placement and integrating these funds with their digital SMEB accounts. This includes clear guidance on cash placement procedures, reconciliation and accessing funds quickly. Our in person human support service desk are on hand to provide assistance when required.
This pre-emptive investment in physical cash infrastructure and human support provides a significant advantage in a scenario where cash acceptance becomes mandatory for essential services however there could be an impact on business operations and technology roadmap.
Impact on Business Operations
The mandate would likely increase demand for solutions that seamlessly integrate cash and digital financial management. Businesses in essential sectors, while potentially needing to accept cash, will still seek the efficiency and insights offered by digital platforms like SMEB.
Our operational focus will therefore expand to:
- Strategic Partnerships: Strengthening collaborations with POS providers and accounting software companies to ensure smooth data flow between physical cash transactions (via SMEB Cube cash placement) and digital records within the SMEB ecosystem.
- Targeted Marketing: Highlighting the unique value proposition of combining a digital e-money account with a convenient cash placement solution like SMEB Cube for businesses in essential service sectors.
Impact on Technology Roadmap
Our technology roadmap will evolve to further leverage the SMEB Cube and cater to the needs of a hybrid cash-digital environment:
- Advanced Reconciliation Features: Developing more sophisticated features within the SMEB platform to automatically reconcile SMEB Cube placements with digital transaction records, minimising manual effort and potential errors.
- Integration with Analytics: Incorporating data from SMEB Cube placements into our business analytics tools, providing a holistic view of cash flow alongside digital transactions.
- Expansion of SMEB Cube Network: Strategically expanding the deployment of SMEB Cubes in locations convenient for essential service providers, ensuring accessibility for cash placements.
- Potential for Withdrawal Functionality: While currently focused on cash placement, the roadmap could include exploring secure cash withdrawal functionality at SMEB Cubes in the future, further enhancing their utility in a cash-inclusive environment.
As we have an understanding of the need for physical and digital payments, it means we are not starting from scratch in addressing the need for physical cash infrastructure. Our existing solution offers a secure, efficient and cost-effective method for businesses to manage their cash takings, directly addressing a key challenge posed by mandatory cash acceptance. By seamlessly integrating the SMEB Cube with our digital e-money accounts, we offer a comprehensive solution that empowers essential service providers to navigate a cash-mandated future while still benefiting from the efficiency and control of digital finance. Our technology roadmap will focus on strengthening this integration and expanding the reach and functionality of the SMEB Cube network, solidifying our position as a forward-thinking partner for SMEs in an evolving payments landscape.
What specific innovations is SMEB developing to help vulnerable customers transition between cash and digital payments?
At SMEB, we believe that technology should be supported by genuine human interaction. Unlike some purely digital platforms, you can always speak to a real person by calling our dedicated support team who are available around the clock to answer customer’s questions and provide assistance.
Furthermore, our system employs intelligent exception reporting. Whereby if customers have difficulties accessing their account, such as multiple incorrect PIN attempts, this triggers an immediate alert. Our team will then proactively contact the consumer to offer support and ensure you can regain access quickly and securely. This proactive approach is part of our commitment to providing a secure and reliable service
With cash usage projected to decline to 8% of transactions by 2030, what alternative solutions could protect the 1.2 million unbanked UK adults?
With cash usage in the UK projected to plummet to just 8% of transactions by 2030, the financial inclusion of the 1.2 million unbanked adults becomes a critical concern. Relying solely on digital solutions risks further marginalising the 1.2 million unbanked UK adults who may not have access to smart technology required to be digitally inclusive.
Alternative solutions include ensuring basic bank accounts have minimal fees and no minimum balance requirements, making them genuinely accessible to low-income individuals. Collaborating with local charities, community centers and payment hubs to facilitate account opening and provide financial literacy support. Financial kiosks like the SMEB Cube offer a compelling solution by providing consumers with the flexibility to access cash or open digital bank accounts. Their smaller footprint translates to a cost-effective alternative requiring less space and manpower compared to traditional branches.
Ultimately protecting the unbanked in a rapidly digitising financial landscape requires a collaborative effort between government, financial institutions, technology providers and community organisations. By embracing a diverse range of solutions combining digital innovation with accessible physical infrastructure and targeted support, the UK can ensure that no one is left behind in the transition towards a less cash-dependent society.
Andrew Martin, CEO & Founder, SMEB