How the Digital Payment Revolution Changed the World
At this point, digital payments are the norm. Research shows that an estimated 80% of consumers now use plastic or digital wallets to make purchases and pay bills. In some circles, there has even been talk of eliminating cash altogether. Though experts believe a move like that will still be decades away if it happens at all, the financial world certainly seems to be heading in that direction.
Looking Back to the Beginning
Most people believe digital payments are a fairly recent development. In reality, electronic funds transfers date back more than 150 years thanks to Western Union. They weren’t widely accepted at first. Then, in 1994, digital payments started becoming a bit more common due to the rise of the internet, online shopping, and virtual bill payments.
Today, virtually everyone uses digital payment options most of the time. Only a handful of stores and vendors across the planet still hold fast to cash and have yet to adopt, at the very least, point-of-sale terminals. There’s no denying that the digital payment revolution is upon us, and it’s here to stay.
Ways Digital Payments Have Changed the World
Digital payments have definitely changed the world. One of the most obvious ways is by reducing or even eliminating the need for people to keep cash on hand. This revolution has also decreased the amounts of cash businesses need to keep in their tills. It’s a simple matter of convenience. That barely scratches the surface.
Security and Peace of Mind
There are numerous benefits of digital payments to businesses, but safety and security are among the most noteworthy. Reports indicate a notable increase in business robberies during the 1980s and early 1990s. Since that time, the numbers have steadily dropped. In fact, some accounts show they’re at their lowest point since the mid-1900s.
Many analysts insist this decline can be attributed in part to the ongoing rise in digital payments. Wrongdoers simply feel that since there’s not as much money in cash registers or safes, there’s little point in risking a robbery in many establishments. Though still too frequent, robberies are on a noticeable downward trend.
From Consumers’ Perspectives
Peace of mind is also increasing from the perspective of consumers. If a wallet full of cash falls out of your pocket or wallet or someone happens to swipe it, there’s no way to recover the missing money. It’s not even possible to prove how much was taken. Those who have lost their wallets or purses or had them stolen with a great deal of cash in tow were simply out of luck.
No one is denying that bank accounts and credit and debit cards can be hacked. As long as money makes the world go around, there will still be people out there trying to take what isn’t theirs. Still, digital payment security is increasing, and electronic payments leave behind a virtual paper trail that can be traced back to the point of fraud. From there, funds can be recovered.
Online Bill Payments
Businesses can also enjoy a range of benefits from digital bill payments. They no longer have to keep up with stack after stack of paper invoices. They don’t have to write countless checks to cover their suppliers, utility companies, mortgage lenders, employees, and other accounts payable. There’s no worry over checks or money orders getting delayed in the mail. Fewer bills are inadvertently being overlooked because of paperwork getting lost in the shuffle.
Since businesses can now make all their outgoing payments online or through other digital means, they have a higher level of convenience and simplicity than ever before. In many cases, they have fewer late fees and credit issues thanks to the factors mentioned above. Human error isn’t quite as problematic as it once was, either.
Incoming Payments
On another note, businesses can get their money from customers much faster. By accepting various forms of digital payments, today’s companies don’t have to wait for checks from customers to arrive in the mail. They don’t necessarily even have to wait for clients to visit their stores in person to make payments.
Not very long ago, depositing payments into a bank account meant businesses had to rush to get to the bank before it closed. A trusted employee was sent to the bank with a bag of cash and checks to deposit the day’s funds. If he or she didn’t make it to the bank in time, the bag had to be placed in the night deposit box.
Either way, companies often ended up waiting several days before the money actually showed up in their accounts. Today, deposits often happen instantly or within a few hours from the time a transaction occurs. Waiting is a thing of the past, so businesses get their money much faster.
Simpler Bookkeeping
Keeping track of incoming and outgoing payments internally was yet another problem. Employees largely had to enter payments and expenditures into spreadsheets or other types of logs. That took a great deal of time and effort, and entry errors were certainly a possibility. Today, digital payments can be linked to bookkeeping software, so those incoming and outgoing funds are adjusted automatically and accurately.
Higher Profits for Businesses
In addition to those other benefits, quite a few companies are seeing higher profits now that the digital payment revolution has taken over. Reports from the financial sector show that consumers make an average of 20 percent more purchases with credit and debit cards and mobile payment solutions than with cash. They often spend about twice as much with digital payments as well. In some cases, that figure surges even higher.
Paying customers appear to be far less stingy and careful with their finances when they’re not counting out cash for a transaction. That means they’re willing to spend more. As such, businesses that offer a variety of digital payment options stand to enjoy higher profits both online and in person.
Greater Customer Reach
Before digital payments came to pass, consumers primarily shopped at stores in their local areas. They often had little other choice because many stores wouldn’t accept out-of-town checks and carrying stacks of cash was risky and nerve-wracking. Some people ventured out of town for shopping excursions, but those outings were generally few and far between.
In those days, businesses mainly had to rely on local customers within their target audiences for sales. That meant their potential clientele was limited even in larger cities. Today, all that has completely changed. E-commerce has given businesses almost unlimited customer reach with the right marketing strategies in place. Furthermore, digital payment solutions have allowed customers to shop from virtually anywhere.
All that has given consumers unprecedented selections of the products and services they’re looking for. They can research features and compare prices until they find the items that best meet their needs. In turn, companies that offer different types of digital payments can take advantage of the broader reach to generate far more income.
Numerous Digital Payment Solutions to Choose from
In the early days of digital payments, businesses didn’t have many options to choose from. Point-of-sale terminals and credit card processors were extremely limited. Some came with exorbitant fees as well. That left businesses struggling to see measurable gains from adopting those payment methods. Again, times have changed.
Numerous options are now available to companies looking to offer their customers digital payment methods. On the most basic level, businesses can choose from a vast lineup of point-of-sale terminals with various features. They can upgrade to contactless payment options, allowing customers to tap their cards or wave their phones over their POS terminals. Even biometric payment verification solutions and mobile POSs are available.
Additionally, businesses can adopt a long list of online payment platforms for their customers to take advantage of. That further ramps up their reach and potential for higher profits. Companies can allow customers to pay from their social media sites and other sources outside of their dedicated websites. As such, customers are more inclined to make purchases.
On top of all that, businesses now have the capacity to compare the features of different digital payment solutions. That gives them the power to find the ones that best meet their unique needs rather than having to settle for a cookie-cutter option.
Having more digital payment platforms to choose from also allows companies to find the ones that accommodate their budgets. It’s no secret that digital payment solutions come in an array of price ranges with different types of fees involved. Considering the widespread options now available, companies don’t have to choose those with lofty processing fees and other high costs.
Changing the Way Companies and Customers Do Business
Digital payments have definitely changed the world; there’s no arguing that point. They have given both businesses and consumers far more freedom than ever before. Customers can now take advantage of an entire world of products and services. Businesses can also enjoy virtually unlimited markets to draw from.
With the digital payment revolution comes a long list of other benefits for businesses. Companies have numerous digital payment platforms and solutions to choose from, so they can find one that suits their needs. With the right platform, they don’t have to worry about debilitating fees. They can also bring in far higher profits and get paid much faster than in the past.
Convenience can’t be overlooked, either. All the hassles of bank deposits, manual payment entries, and human error have largely become things of the past. When you factor in the advanced security of modern digital payment methods, the benefits increase by considerable margins. Digital payments are expected to evolve even more during the years to come, further ramping up their advantages.
Xpress-pay is your number one digital-payment partner, making sure your business is alleviated from fees and receives 100% of the money due. Our many digital payment tools help you earn more revenue with every transaction and elevate each customer experience. As digital payments advance, so too will Xpress-pay, making sure your company's capabilities are current and your bottom line is growing.
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/