While digital payment systems have been used for several years, not all business owners grasped the advantages of the strategy—until the pandemic changed everything. Today, contactless and real-time payment solutions are front and center, with business owners everywhere hustling to implement strategies tailored to meet their companies’ needs.
However, financial concerns are keeping company owners from moving forward with adopting digital payments. While it’s certainly true that implementing digital payment solutions involves an investment, there are numerous reasons to move forward now rather than waiting. If you’re still on the fence about implementing a digital payment system, this is the time to discover why doing so could actually increase your overall ROI.
Understanding How the Need for New Solutions Developed
If you’re unsure why digital payments are increasingly popular, it’s important to step back and look at the environment that’s fueling the move to a digital world. Even before the pandemic, both company owners and consumers were already taking advantage of digital payment systems. With the onset of COVID-19, contactless payment options quickly became mandatory.
Not only are digital transactions safer, but business owners and customers both discovered the option made life easier. That convenience and ease of use make it unlikely anyone will want to return to using traditional payment options like cash and checks. Although cash, checks, and other payment options will still be available, the surge in digital payments has continued even with the pandemic subsiding.
The net result is that the majority of business owners are implementing or expanding their use of digital payment systems. After analyzing the benefits and determining how bill payment pricing elevates profits, it’s easier to justify the minor expenses involved.
The net result is that the majority of business owners are implementing or expanding their use of digital payment systems. After analyzing the benefits and determining how bill payment pricing elevates profits, it’s easier to justify the minor expenses involved.
Discover Just a Few Advantages of Implementing a Digital Payment System
If an organization is limited to traditional payment options, they’re less likely to reap the profits competitors are seeing. Here are just a couple of advantages your organization can take advantage of when moving to a digital payment system.
- Increased Efficiency Impacts All Apects of a Business. As overall efficiency levels improve, companies routinely experience additional sales and higher customer satisfaction rates. Of course, costs per transaction also go down, which means even a modest improvement in efficiency levels positively impacts your bottom line.
- Faster Payment Boosts Cash Flow. In far too many instances, companies wait for payments. With digital payment systems, companies typically receive funds faster, which improves cash flow and makes it easier to make your own payments on time and in a more predictable manner.
- Digital Payments Reduce Overhead. Data entry has always been a tedious, time-consuming activity requiring too many employees. Digital payment systems significantly reduce or eliminate manual entries and processing. That means companies save money and minimize the odds of entry errors.
- Going Digital Reduces Fraud. In the past, fraud could occur at several levels and left companies vulnerable to serious losses. With digital payment systems in place, the odds of fraud are dramatically reduced.
Since digital payment systems are tailored to meet the demands of individual companies, other advantages are possible, so it pays to discuss your needs with an expert prior to deciding on a new system for your organization.
What’s the Future for Digital Payments, and Why is it Important for Your Company?
While it’s impossible to predict the future, current trends make it clear that the use of digital payment systems will increase dramatically in the near future. Buying habits are changing, technology is rapidly evolving, and government regulations are being developed, but buyers and sellers are still finding that digital payment options are easier, faster, and safer for everyone.
So, why are those things important? Disruptive innovations always fuel a wide variety of changes, and that’s especially true for marketing. Today’s shoppers want instant access to products and services, which means suppliers of those goods and services need to update their systems to reduce the time between a customer placing an order and that order reaching their doorstep. That’s a win-win, as everyone involved will benefit.
Customers also expect, or demand, safe transactions. Data losses are costly, and the majority of companies that experience the loss of confidential data lose customers and go through costly processes to resolve data loss issues. Modern digital payment solutions reduce the odds of data loss, which means net profits increase. Everyone is happier when transactions are completed quickly and safely.
The takeaway here is that current trends suggest the popularity of digital payments will increase significantly in the future as more users discover the advantages the option provides. Companies also find that their markets will expand as more users discover and demand digital payment options. In other words, company owners can realistically expect more sales and increased profits when digital payment options are employed.
Of course, it’s also important to realize competition may increase as newcomers move to take advantage of the nation’s expanding marketing opportunities. That’s another reason integrating a digital payment platform now will be important—you’ll lead the way instead of playing catch-up.
Looking for New Ways to Monetize Your Payment Platform
While somewhat controversial, monetizing your organization’s payment data provides an opportunity to increase immediate profits and enhance future sales. Privacy must be respected, but monetizing data is not new. Although larger companies have access to far more data, even smaller organizations have an opportunity to turn information into profits.
Industry experts routinely predict the sheer volume of data will expand exponentially in the coming years, which means starting to collect data now will provide a baseline for companies to use and build on as additional data is collected in the future. So, what specific strategies can business owners adopt to better utilize the data gathered by their digital payment system?
- It’s not always easy to foster relationships between merchants and customers, which suggests any strategy with the potential to enhance relationships should be considered. As customers make purchases, a certain amount of information is automatically provided. That information can be used to predict future actions and allow businesses to alter marketing strategies to meet their clients’ needs.
- Improved insights boost business for everyone. Remember that a business needs support to improve services, and data also helps payment system providers to improve platforms to meet consumer and business needs.
- Safety Improves as systems evolve. Payment platforms will continue to see changes as potential threats are identified. Both businesses and customers want to feel safe during transactions, and data provides information payment platform providers need to maintain security.
Obviously, the type and amount of data collected and how it’s used must be subject to controls, as no one wants confidential data to fall into the hands of malicious actors. The industry is aggressively self-policing, currently negating any need for government regulations.
Delivering the Best Customer Service is Always Crucial
Virtually every business has competition, which means consumers at all levels demand quality customer service or they will simply take their loyalty elsewhere. Secure digital payment platforms allow businesses to deliver a level of customer service that enhances loyalty and thus, repeat business. Being able to make payments quickly and easily using a quality payment system is always attractive to customers.
At the same time, the platform must conform to the needs of business owners. One-size-fits-all solutions may work, but businesses want and need more from their payment solution. Those businesses are also consumers, as they have choices when selecting a provider. If promises are not met, owners will seeks a solution that delivers.
Again, costs come into play, as business owners won’t pay premium prices for sub-par services. However, the majority of owners recognize that paying for a quality digital payment system is an investment that yields high dividends. The business sees reductions in overall expenses while also improving sales as customers keep coming back or referring others.
Looking to the Future
When exploring their payment platform options, business owners need to establish short- and long-term objectives and look for solutions that will help to achieve those goals. Here are just a few questions to ask a digital payment provider.
- What makes your system better than the competition?
- Why should a business work with a payment system provider rather than building a system of their own?
- How will your system evolve as consumer needs and demands change?
- Will your offering evolve with technology?
Depending on your specific business needs, there will almost certainly be other important questions to pose when choosing a digital payment provider. If you’re unsure how to choose a system that works for your organization, it’s also crucial to seek outside advice.
The ultimate goal is to find a digital payment solution that will benefit all participants. Take the time now to build a relationship with a provider and learn more about your options to ensure both you and your clients get the most from your selection. This is where Xpress-pay’s digital solution is certain to help your business.
To learn more about this, and all Xpress-pay can do for your organization, schedule a call with one of our team members at (607)753-6156, email us at sales@xpress-pay.com, or enroll now at https://info.xpress-pay.com/sign-up/
