Australia’s coffee culture is deeply ingrained in the daily routines of millions, with cashless coffee shops becoming an increasingly popular trend. From the bustling streets of Melbourne to the coastal cafes of Sydney, grabbing a coffee is not just about the caffeine hit; it’s a social ritual, a moment of pause, or a way to start the day. As society shifts towards a cashless economy, more coffee shops across Australia are adopting digital payment systems, offering a seamless, efficient, and modern way for customers to pay for their daily brew.
One notable example of this trend is Gloria Jean’s Coffee Australia, which recently announced a directive to trial exclusively EFT (electronic funds transfer) payments at select branches. This move is part of a broader shift towards cashless transactions, reflecting changing consumer preferences and the evolving landscape of retail.
Why Coffee Shops Benefit from Going Cashless
For a coffee store, the decision to switch to purely digital payments can offer several benefits.
Increased Efficiency
The pressure of transactions in a front-end business like a coffee shop can be time-consuming and prone to errors. Staff need to count change, reconcile cash drawers, and make bank deposits, all of which can take up valuable time. By moving to digital payments, these tasks are eliminated, allowing staff to focus more on customer service and reducing the time spent at the counter. Transactions are faster, which is crucial during peak hours when queues can build up.
Enhanced Security
Cash handling increases the risk of theft, both from external sources and internally. Cashless transactions significantly reduce this risk, as there’s no physical money to steal. Additionally, digital payments offer a traceable and secure record of transactions, making it easier to manage finances and monitor sales.
Cost Savings
While there are fees associated with digital payment systems, these can be offset by the savings on costs related to handling cash, such as transportation to the bank and security measures. Moreover, digital payments can reduce the need for frequent cash pickups, which is particularly beneficial for coffee shops with high daily turnover.
Customer Preference
More customers are moving away from cash, preferring the convenience of tap-and-go payments. The Reserve Bank of Australia (RBA) stated the COVID-19 pandemic exacerbated the decline of cash payments, with more people opting for digital payment methods such as credit/debit cards, mobile payments, and other electronic transfers. By accommodating this preference, coffee shops can enhance the customer experience and avoid potential sales loss from those who no longer carry cash.
Health and Hygiene
In a post-pandemic world, hygiene has become a top priority for both businesses and customers. Handling cash, which passes through many hands, is seen as less sanitary than digital transactions. Going cashless can reduce the spread of germs, providing a safer environment for both staff and customers.
Gloria Jean’s Trials Cashless Payments
On 3 September 2024, the Retail Food Group announced that Gloria Jean’s Coffee, one of its component brands, will have a trial programme of exclusive EFT payments at its non-franchise branches, starting 11 September. This decision aligns with broader consumer trends and positions the brand as a forward-thinking leader in the industry.
By transitioning to exclusively EFT payments, Gloria Jean’s is responding to the changing dynamics of customer expectations. Customers at these branches can now pay using contactless cards, mobile wallets, or online payment systems. This shift not only speeds up the payment process but also aligns with the brand’s focus on delivering a convenient and modern customer experience.
However, the trial does not extend to Gloria Jean’s Coffee franchise owners across Australia. As a result, a franchise owner can still accept cash payments.
This decision also supports the broader movement towards a cashless society in Australia. As more businesses, including coffee shops, adopt digital payment systems, cash is gradually becoming less common, especially in urban areas. A Gloria Jean’s representative said the move was meant to improve the safety and security of employees at the non-franchise branches.
For customers, the switch to digital payments in coffee shops like Gloria Jean’s offers several advantages:
- Convenience – Customers can pay quickly and easily using their preferred method, whether it’s a debit card, credit card, or mobile payment app. This convenience is particularly appreciated in a fast-paced environment where every second counts.
- Loyalty Programmes – Many digital payment systems can be integrated with loyalty programmes, allowing customers to collect points or receive discounts automatically with each purchase. The objective is to keep them coming back to your branch and possibly bring more friends along to buy your drinks and snacks.
- Reduced Wait Times – Digital payments tend to be faster than cash transactions, meaning shorter queues and quicker service. This is particularly important in busy coffee shops where customers are often on the go.
- No Need for Cash – As society moves towards cashless transactions, fewer people carry cash. Offering digital payments allows coffee shops to cater to this growing segment of the population, ensuring they don’t miss out on potential sales. The challenge though is to convince more customers of cashless payments as a viable transaction option – some social media users saw a placard announcing the trials posted at a non-franchise Gloria Jean’s Coffee branch in Melbourne and are looking to boycott the place.
- Transparency – Digital payments provide customers with an immediate and clear record of their transactions, which is useful for budgeting and tracking expenses. This transparency builds trust and can enhance the customer’s overall experience.
Conclusion
The transition to digital payments is not just a trend; it’s a reflection of the broader changes in how society interacts with money. For coffee shops, adopting digital payment systems is a way to stay relevant and meet the needs of a modern, tech-savvy customer base.
As Australia continues to move towards a cashless society, coffee shops that embrace this change can benefit from increased efficiency, enhanced security, and greater customer satisfaction. Even if it’s just a trial period, Gloria Jean’s Coffee Australia’s decision to activate EFT payments at select branches is a testament to the advantages of going digital.
For other coffee shops considering this shift, the move to digital payments is more than just a convenience — it’s a strategic decision that can improve operations and customer service, ensuring that they remain competitive in an evolving marketplace.
DISCLAIMER: This article is for informational purposes only and is not meant to replace financial advice. The information listed is based on the most accurate data at time of writing. 2 Ezi is not affiliated with any food industry body, coffee chain or digital payments service.
