Many consumers today do not walk around with wads of cash in their pockets. Check books are also becoming obsolete thanks to the surge in online banking options. Most consumers pay with a card or their phone.
To capture these sales, small businesses must keep up to date — or risk losing customers just because they don’t have convenient payment solutions. Businesses must make the buying process as simple as possible so there are fewer hurdles a customer must cross to get to the finish line.
Embracing Different Payment Solutions
Here are some more reasons why it is a necessity to offer multiple payment solutions:
Time Saved
Say a small party planning business needs to collect payment from a customer for a bridal shower décor. They could print an invoice, put it in an envelope, attach a stamp and wait for a few days for the customer to receive it. Then they can wait another couple of days to receive a check and deposit it in their bank account. They may even have to wait for the check to clear before confirming payment.
However, if they use invoicing software, they can secure payment in a few minutes. They can email the invoice or share a link for online payment. Customers can pay securely 24/7 with any credit or debit card and be done in a fraction of the time. Both parties save money and time. They also both get a record of the transaction nearly immediately.
Accurate Bookkeeping
When invoices are synced with accounting software, bookkeeping can be quicker and more accurate. There can be a reduced margin of error with fewer people involved in the process. Business owners can get a snapshot of finances at any time they like instead of waiting on getting reports from an accountant. They can tell at a glance how much money was deposited into the business account and where it was spent. With integrated reporting tools, business owners can analyze payroll, sales, and other categories quickly and easily.
Cloud-based accounting systems can also allow team members to log in from anywhere. If employees need to work from home, they can also still access the books. Entrepreneurs can keep an eye on finances if they are out of the office for work or pleasure. You are no longer chained to files and expense ledgers or a computer system in a physical office space.
Increased Revenue
Online payment solutions can also help the bottom line for a small business. When customers have multiple ways to pay, the probability they will make a purchase is higher. If a gas station convenience store accepts Apple Pay or Google Pay, it can help customers who may have forgotten their wallet at home. More than half of American consumers now rely on the digital wallets on their phones to check out compared to carrying cards or cash.
A small business can also have more impulse buys if they accept various forms of payments. Some customers may be comfortable paying with Venmo or PayPal. Often you just need a QR code for customers to scan and pay. This can also work well at fairs and other events where customers may have just come for the rides but end up making a purchase. Transferring to your bank account also takes just a few clicks.
Analyzing Purchasing Patterns
With online reports, it can be easier for small business owners to detect trends and adjust their sales and marketing strategies accordingly. For instance, based on online sales data, a nail salon can see a large chunk of their clientele is opting for gel manicures these days. They could potentially offer more colors in gel nail polish so that more customers get the perfect shade for the season.
The nail salon could also use the data and offer promotions on acrylics or other services with a good profit margin. Since they know they are already doing well in gels, they can divert more marketing dollars to other services. Instead of guessing your way forward, business owners can make more informed decisions. Decisions can be based on actual data, not just hunches.
Integrations & Security
Once you have online payment options, it becomes much easier to connect with ecommerce platforms to host a website. Some major online store platforms offer easy back-end integrations so that launching your store becomes easy for even those without a tech background. Online payments can also help tremendously with recurring payments in donor management software for nonprofits. They can make billing in subscription-based businesses a breeze too.
Customers often feel online transactions have some recourse. They could dispute a transaction with a credit card company as opposed to if they had paid in cash. Some online payment companies even provide a security guarantee, so if someone is scammed in an online marketplace, they are protected.
Online payment processing does often come with a small processing fee. However, the charge can be well worth it when customers factor in the convenience, security, and other advantages. The future will only become more paperless, so it makes sense to embrace the trends and equip your venture to be ready for business whenever and wherever it may be.
