5 Reasons to Choose Digital Payments for Your Business
With the increase in smartphone users, rise in e-commerce sales, and explosion in Internet activities across the globe, digital payments have grown in popularity and taken the world by storm. As the digital payments market grows rapidly, there is no doubt that its demand will grow exponentially.
While many businesses have turned to digital payments for easy transactions, many companies are still skeptical about digital payments. To help such people decide whether to go for digital payments or not, we bring you 5 benefits of digital payments.
Before discussing why you should go for digital payments, let us first know what digital payments are. Feel free to skip ahead if you are familiar with digital payments.
What Are Digital Payments?
Digital payments are transactions that involve the transfer of money securely from one payment account to another. These transactions occur through digital or online modes and use devices like mobile phones or computers and involve no physical transfer. Reputable payment processors use various forms of encryption, standardized by organizations such as the PCI Security Standards Council, to make financial transactions safe and secure.
To understand digital payments better, let’s consider an example of an e-commerce purchase. When you put your card details into a website and check out online, payment occurs without any physical transfer of money. It includes virtual cards, wire transfers, and digital wallets introduced by digital payment companies such as Apple Pay, Google Pay, PayPal, and Coinbase Wallet. Payments made with bank transfers, mobile money, and payment cards, including credit, debit, and prepaid cards, come under the category of digital payments.
1. Improve Customer Experience and Satisfaction
Picking a payment gateway provider is a quick fix for customer satisfaction. With digital payments technology, your customers can pay you on the go using their mobile wallet, with the option to use a virtual or physical card if necessary. Not only will they be able to pay from the comfort of their home, but they will also not feel any location constraints. Your customers need to click a few buttons to make payments. This streamlined process of collecting payments ensures seamless interaction between you and your customer. This helps build and improve the overall user experience of your customers, which provides brand loyalty and recurring customers.
2. Digital Payments Make Transactions Secure
Encouraging your customers to make transactions online with you is a whole new ball game. With the multitudes of cybercrimes that plague the marketplace, it is essential to gain your customer’s trust. An ideal way of doing so is by picking a payment gateway that values the safety of your business and customers. What better way to ensure that transactions are secure than going for digital payments?
In Digital payments, emphasis is put on end-to-end security, making them secure through various methods of encryption as well as making payments without the need to know the bank details of the counterparty. They also provide greater security as the card numbers in online transactions are tied to individual purchases rather than the card itself. Each transaction is limited to the pre-approved amount.
3. Convenient Way of Transferring Money
Most customers prefer going cashless, as compared to taking physical money with them wherever they go. But offering your customers a digital mode of transacting with you will allow you to receive funds quickly across the world. Ideal digital payment methods for your customers are through cards, net banking, mobile banking, wallets, UPI, and NEFT. This convenient way of transferring money will help your business attract a larger and sometimes even a global customer base.
4. Reduce Manual Work
Even finance teams that have adopted some software are often stuck manually faxing purchase orders, going through paper receipts, or mailing checks. Not to mention that they have to reconcile all of these paper activities into accounting systems manually. Digital payments technology reduces manual work by unifying the entire process into a single automated workflow and seamlessly passing the data to the general ledger. Also, they are much faster than traditional payments-especially mailed checks or money orders, saving valuable time.
5. Help You Avoid the Hassle of Counterfeit Currency
Does the thought that someone will pay you with counterfeit money still worries you? Do you have to double-check if someone has made a payment using fake currency or not? If these questions keep troubling you day and night, it’s time to change the way you undergo business. And digital payment can help you take the first step in that direction. Accepting payments through online modes keeps you at bay from getting counterfeit currency, allowing you to focus entirely on your business and sales.
In the upcoming months, when the COVID-19 will hopefully be under control, people will return to the office, and physical payments will gain traction again.
But that doesn’t mean you should go back to spending money the old way, that is, making physical payments as you did before. If your business hasn’t embraced digital payments, now is the right time to embrace them. By choosing digital payments for your business transactions, you will be able to make transactions quickly and without friction, in compliance with the needs of modern finance teams.