Digital businesses are the future!
2020 and 2021 have given small businesses, homegrown businesses, and medium-scale enterprises their moment to shine. Small business owners have capitalized on the power of social media to expand their business.
Brands are steadily moving online apart from operating out of physical stores. However, the biggest hurdle many small businesses face is collecting payment, with many such enterprises still relying on conventional payment methods primarily consisting of cash.
Cash transactions are especially crucial for businesses, especially in tier-2 and tier-3 cities. However, small businesses may lose out on business if they do not embrace modern payment systems. If you’re a thriving business looking to improve finances and regulate your clients’ financial transactions, you’ll need to install a risk management solution that will save you from suspicious transactions and preserve your financial statements. Payment gateways simplify the payment process for your customers while also improving your cash flow by reporting payments fast on your end.
Here is an interesting piece of data – a report by Ernst & Young recently revealed that the volume of UPI transactions jumped 110% from June 2020 to July 2021! In the post-pandemic world, these numbers are projected to grow further. This makes a substantial argument for small businesses to adopt online payment processes.
All said and done, adopting online payment processes has more distinct advantages that are likely to take a modern business to new heights.
Here are the top advantages small businesses enjoy when they start accepting online payments.
1. Instant transactions
One of the more profound benefits of online payments is the speed of transactions. Payments that once took 3-5 business days to reach completion can now be made within seconds. Not only does it increase gratification for the customer, but it also speeds up the purchase cycle for the merchant. When merchants create payment links, they expedite the purchase process by directing the customer straight to the payment gateway. With instant payment, the shipping and delivery time reduces, giving the customer a taste of instant shopping.
2. Merchant security
One of the biggest worries of an online small business is the number of CoD orders returned by customers. Having an online payment gives the assurance of the funds being transferred to the merchant account almost immediately. This rules out the chance of fake orders being placed and small businesses being scammed.
3. Recurring payments
Online payments make the process of recurring payments easier. This is especially advantageous for businesses with a subscription-based model. Therefore, businesses can create payment links and accept payments from customers at regular intervals for subscriptions, memberships. At the same time, it makes subscription payments easier for the customer, helping them save time.
4. Increases impulse buys
Market studies reveal that spendthrifts or impulsive buyers make up a large part of the sales that drive and increase profits for small businesses. When a product or a service is convincing enough, customers are more likely to place orders almost immediately. Online payments encourage this behaviour and allow customers to make purchases by paying on the spot. Countless customers are guilty of impulse buying – a trait that immensely benefits small businesses. Payment gateways that let you create payment links help reduce the transaction time and increase impulse buys on websites and apps.
5. Convenient for the customer
Online payment methods are the most convenient forms of payment. Not only do they offer freedom to choose for the customer, but there is also no bar on when the payment has to be made. As a result, the customer can even shop and place an order at 12 in the night. This is how small businesses can effectively enhance customer experience and make sales even at odd hours.
Small businesses that stick to traditional forms of payment have to spend extra money on employing people and offices to process the transactions. The most significant benefit of online payments is that businesses can save lakhs in operating costs by eliminating the need for extra people and offices. Thus, making online payments the most cost-efficient mode of accepting payments.
7. Multiple payment options to choose from
Conventional modes of payment have minimal options: cheque, demand draft, cash, and bank transfers. With online payments, customers get a range of options. From credit and debit cards to net banking with 100+ banking partners, from UPI payments to eWallets that consist of further options. New additions like Pay Later and credit from non-banking financial institutions also find a place in the array of online payments. With so many options, customers can choose one that best suits their needs and is convenient at best.
8. Contactless payments
In the pandemic era, nearly all customers are concerned about touching surfaces when shopping in-store or ordering goods at home. No one wants to come in contact with surfaces that several other people have touched. Contactless and one-tap payments like UPI, QR scanning, net banking, and tap-and-pay cards help solve this problem and aid in businesses accepting payments without requiring customers to touch joint surfaces.
Small businesses incorporating online payments with their existing systems increases sales. Online payments are highly secure, carry minimal to no risk, and increase customer satisfaction. Consequently, such small businesses can claim an edge over others who rely on traditional payment methods.
Not to mention, accepting online payments can help small enterprises cater to a younger demographic with a higher disposable income. This can help you become an established entity – all with the power of digital payment systems.