In recent years, the world has changed the method of payment from cash payments to digital payments. So before you delve deeper, you may have questions like “What do you mean by digital payments?” Or “What is a digital payment system actually?”
In simple, you can understand that the money or value you transfer by using electronic gadgets such as computers, mobile, etc is called digital payments. Apart from this, there are many other sources are available that you can use to do payments such as Internet banking, UPI, mobile wallets, google pay, Paytm, etc.
The question may be asked why digital payment is necessary if transactions can be made in cash. Simply, the most important aspect of digital payment is that you don’t have to rush to the bank every time you have to make a payment.
According to Electronic Transactions Association’s recent study, about 27% of small businesses in the United States have already seen an increase in cashless payments after a pandemic. The United States also has 67% of shoppers who want self-service features for mobile devices.
In addition to transferring money from physical stores, e-commerce initiatives are helping businesses increase revenue more than ever. E-commerce grew 42% in August from the previous year, and online shopping, or BOPIS, increased 59% in August.
Here we are listing some genuine reasons that forced you to consider digital payments from now onwards-
Transfer Payments Instantly
Digital payment is much faster than the old way of paying by cheque or cash, especially if the cash is urgently needed and needs to be sent to a person who lives far away. Digital payment speeds up money transfer because space and time are no limitations. It is therefore easy to pay, regardless of time and place.
If you have a small business, providing digital payment options can help you grow your business. A network presence combined with digital payment options can increase the scope of your business because customers around the world or around the world can view your business and make instant payments when you purchase your products. Digital payments can be made in different ways, e.g. such as UPI, Internet Banking, PayPal, and others. You can make use of invoice templates to generate bills quickly.
Little chance of stealing
Receiving cash from customers also carries the risk of theft because the cash must be physically stored somewhere. This method is not entirely safe because you cannot be alert 24 × 7.
This risk can be reduced by using a secure digital payment method. By providing a digital payment method, all funds will be transferred directly to your bank account. You don’t need to keep track of all your transactions because digital payment apps record all of your payments. Protection against theft is therefore one of the most important benefits of digital payment.
Allow You To Have Contactless Payments
Due to the outbreak of coronavirus, Digital payments have become really important. People should avoid human contact in all possible ways to protect themselves against coronavirus. This has led to an increase in the use of contactless payments. The QR code is one of those types of digital payments where the payee has to open a digital payment application and use the scanner to scan the company’s QR code.
When it comes to payments, transparency is the utmost important factor to consider. Therefore, when using digital payment methods, it is essential that a business owner maintains transparency. In the case of digital payments, a business owner does not have to worry about payment records. Also, all the payment details can be provided to the customer in advance to avoid confusion when making the payment.
No processing costs
Cash payments may not incur additional handling fees, but in brick-and-mortar stores, buyers may incur additional charges. Also, if someone avoids cash and uses checks to pay, postal services can charge unnecessary fees.
In the case of digital payment systems, a person does not have to pay high processing fees. The only requirement for digital payment services is a fixed subscription fee to be paid to the service provider.
Digital payments offer a great opportunity to your company to reach customers across the wide world and accept multiple payment methods and currencies. In terms of domestic trade, the BOPIS version can help increase cash flow, as customers may want to pick up the product immediately, rather than waiting for delivery delays. Opening an additional shopping center for customers to buy their products online, rather than storing, can increase overall revenue by giving consumers more shopping opportunities than ever before.
Opportunity for consumer incentive programs
Digital payments let your businesses create user-friendly reward programs and customized shopping experiences. For example, this summer, 7-Eleven increased the number of contactless payments through the loyalty rewards program found in their application. It provides access to special discounts and the ability to earn points for customers using contactless payments. It will boost the revenue because it’s a human tendency to take benefits of incentive programs. Therefore, it’s a great idea.
Digital payments let you experience more comfort while doing payments that you hardly feel in physical payments. The mobile payment platform keeps the user safe with the consumer credit card so that payment for the product can be easily made. So, if you set a regular invoice and change your payment, this process becomes less efficient.
Another example of the benefits of digital payments is that if a person needs to make large purchases, such as home appliances or cars, they can make large payments without wasting time. When you buy such products, you will never know how much money they may need. If we talk about checkbooks, there is a chance that we will lose the checkbooks altogether. Therefore, it is easy to use the use of mobile payments which helps with such large payments.
Giving such benefits to customers is good for retailers because customers who go to earn money sometimes do not return. So, digital payments are a great way to increase sales.
As I mentioned above that Digital payments are transparent, can simplify accounting, and simplify the sales audit process. There is also no need to waste time in restaurants collecting money at the end of the night. This means less chance of human error, increased accuracy and reduced time and resources.
Better payment security
The last and most compelling reason why small businesses need to accept digital payments is better payment security. The biggest problem with carrying money that they always have a chance to rob. Another thing to keep in mind is that if someone knew you often carried cash, you could become prey and injured by criminals. There are also many problems with check fraud when using checks. Finding and resolving problems can take weeks or more. The sale of a product that you believe has already complete may have cancelled. To avoid all these security problems, you can support digital payments instead of cash or checks, if necessary, to avoid all those security problems.
Here are some of the benefits of free money transactions and digital payments that can flatten your small business. Accept the change, accept digital payments.