Almost all shoppers nowadays prefer electronic payment over the traditional payment methods as it’s more convenient, faster and easier. Digital wallet is the most popular online payment method by far. When customers pay online through cards or mobile apps, it’s more time-saving and budget-friendly. Businesses also experience increased sales and reduced transaction costs.
Take a look at these benefits of paying online than paying through cash:
8 Key Advantages of Electronic Payments
- Instant payment. Electronic payments are faster than the usual modes of payments like cash or check. Customers can easily make payments anytime and anywhere in the world, eliminating the need to go to the bank. The e-payment system has grown faster due to internet-based banking and shopping. As technology development advances more, there’ll be a rise of payment processing devices and e-payment systems, and cash and check transactions will decrease. There will also be higher challenges especially for market competitors of payment services.
- Higher payment security. E-payment systems are more secure. They reduce the risk of robbery, fraud, and human error. You’ll also have peace of mind if you need to transport large amounts of money to or from the bank. These systems have ways to secure payments such as SSL, encryption, and tokenization. They also feature One Time Password (OTP) that prevents identity theft by ensuring it changes with each login. They provide strong authentication and protection to electronic banking, corporate networks, and other systems with sensitive information.
- Customer convenience. Electronic payments also allow customers to purchase products on credit through a “pay later” option. You can also automatically collect money after a specific period without sending them constant payment reminders. A payment gateway that allows customers to purchase at their own pace is a powerful tool for any business. Customers tend to buy more when they don’t have to spend a long time waiting in line or carry cash with them.
- Saves processing costs. If you provide payment services to your customers, you’ll need a card processor that requires a fixed cost from you. On the other hand, using an electronic payment system in your business is much more budget-friendly as it just requires a fixed subscription fee.
- Low risk of theft. A secure electronic payment system decreases the risk of theft. You also don’t have to worry about your files as you can easily access all your transaction records. With e-payment, you’ll get assurance that the payment will make its way to your account. Payment portals are secure and protect you from liabilities. Also, when an e-payment system is incorporated with a point-of-sale system, customers won’t hand the card to an employee, thus reducing the risk of fraud or errors.
- Transparent. Transparency is an important factor when it comes to payments. With electronic transactions, you’ll always have a record of the payment details of your customers, so there will be fewer chances of fraud and confusion.
- Contactless. Since contactless payment increased during this COVID-19 pandemic, people have made ways to avoid human touch to avoid getting infected. The need for contactless payment options increased, like POS terminals that don’t require a human touch. In this system, the customer just needs to hold the phone near it and the payment will be processed. You can also enable QR codes or OTPs for other contactless payment options. For businesses, tap-to-pay technology has better operational efficiency as it requires a lesser workforce. Contactless payments reduce the time that businesses spend on counting cash or operating card machines. Contactless payment options also provide a quicker and smoother checkout experience for the customers, which helps earn their loyalty. You can also improve your loyalty programs to further improve customer relationships. A contactless payment facility also doesn’t need any processing fee. Businesses pay the same fee as a regular credit card.
- Increased sales. Electronic payment alternatives have become the preferred payment option since internet banking and shopping become widespread. In the USA, 56% have paid online via credit cards in 2021. E-payment can increase your sales since most of the public are leaning towards e-commerce in both buying and selling.
E-payment systems also provide various options to the customers, which opens up more possibilities to collect your revenue. These easier purchasing options will attract more customers and help increase your revenue flow. Electronic payment-enabled businesses also gain a competitive advantage over those who only accept traditional payment methods.
These are some advantages of switching to electronic payment. It’s more convenient for the customers and increases revenue for the businesses. In this time of the pandemic, it’s also more advantageous since there will be less human contact and reduced spread of the virus.