With more than 50% of consumer transactions completed with notes and coins, according to the Payments Association of SA – cash is still king in South Africa.  

Courtesy of Cash Connect, SA’s leading provider of robust, intelligent cash vaults, here are four simple ways that automated cash management solutions can benefit retail stores:

1. Automated cash handling is more cost-effective than managing notes and coins manually
In-store cash and Cash-in-Transit (CIT) insurance, cash shrinkage, deposit fees, back-office and cash counting supervision costs 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. 

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 R2,5 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, deter criminals and take business efficiency to the next level.

Retailers should seek out providers that can offer a full solution that covers the risk beginning to end – from the moment cash goes into the vault, while in transit, and until their money appears in their bank account.