Given that cash is here to stay, every responsible merchant needs to find ways to safeguard the cash on their premises. With smart, intelligent, and automated cash management, retail stores can trade with a greater sense of security.  

Despite the progressive drive towards all things digital, particularly in the financial space, cash is still king in South Africa. This is underpinned by findings in a 2019 report released by the Payments Association of SA stating that more than 50% of consumer transactions were completed with notes and coins.

Cash Connect, SA’s leading provider of robust, intelligent cash vaults provides insights into how smart retail cash management can save our merchants a significant amount of time and money.

1. Automated cash handling is more cost-effective than manual cash handling

“While there generally seems to be a belief amongst retailers that converting traditional cash handling processes to an automated end-to-end cash management service will incur additional expenses to the business, the fact is that this belief is indeed not true,” says Mark Templemore-Walters, Operations Director for Cash Connect

In-store cash and Cash-in-Transit (CIT) insurance, cash shrinkage, deposit fees, back-office and cash counting supervision costs can quickly add up. For a retail store that trades 30 days a month, employs a daily Cash-in-Transit service from Monday to Saturday and banks a monthly total of R2 million in cash, these and other cash management costs could top R30,000 a month. A fully automated, end-to-end cash management service with a secure cash vault will cost around R15,000 a month—a saving of nearly 50%.

2. Immediate risk transfer

An important element of an automated cash management solution is a robust cash vault that is built to SABS category 4 standards, to ensure that retail merchants can operate in a safe and secure trading environment.

This is like having a bank in the store. Once the merchant deposits its cash into the cash vault, there is an immediate transfer of risk, and the merchant’s funds are guaranteed with a same day settlement into its bank account. This is how retail merchants can improve cash flow with same day cash in the bank.

3. Real-time access to cash flow

An automated cash management solution not only provides secure storage of cash, but also helps merchants to manage and improve their cash flow. With an Instant Access facility, merchants can access their cash whilst still in their cash vault. If merchants need to make an urgent payment for a delivery of stock for example, but their cash is still in their vault and the cash in transit service provider hasn’t collected their cash yet, access to their cash real-time is just a click away. Instant Access gives merchants access to the cash in their vault, whenever they need it.

4. Increased business efficiency

Automated cash management is fast and accurate. More importantly, automated cash management will save a merchant up to 40% of their time as it eliminates all staff touch points associated with manual reconciliations and banking, counting, shrinkage and double-count supervision. This back-office counting role automatically becomes redundant and employees can focus on tasks that add real value, rather than on counting money or standing in bank queues.

An added benefit, is that with Capital Connect merchants can have access to business finance of up to R5 million in just 24 hours, based on the cash and card volumes of the store. Quick access to hassle-free finance for retail merchants is crucial – this allows retailers to buy stock or to make bulk purchases at discounted rates, immediately increasing their profit margins.  

An automated cash management solution is a must for any retail business owner who wants to improve cash flow, access opportunity capital, streamline cash management and take business efficiency to the next level.

“Our robust, automated cash vaults are central to the end-to-end cash management solution we provide to retail merchants. Cash Connect’s smart retail cash management and payment solution is designed to remove the risk of cash on your premises, and to ensure a safer and more secure trading environment,” concludes Templemore-Walters.