Expanding Digital Payment Types and Their Advantages
Not so long ago, paying for items without cash or a check was a novelty. Credit cards first arose during the 1950s, and debit cards followed just a couple of decades later. Those plastic alternatives to paper currency gave people an entirely new alternative to cash, but their use was not widespread in the beginning.
Fast forward to today, and debit and credit cards are only the tip of the iceberg, as digital payments have become the norm. There has even been talk of cash becoming obsolete. Though certain experts insist this won’t happen for quite some time, an ever-growing number of people are taking it upon themselves to refrain from using cash whenever possible.
What Are the Advantages of Using Digital Payments?
Early in the rise of non-cash payment options, people were somewhat leery of such a concept. Many still are, but the number of people who take advantage of digital payments far outweighs the number who avoid them. With so many advantages for paying bills and purchasing items digitally, the decision between cash or digital payment has increasingly come to favor of the latter.
Speed and Simplicity
Speed and simplicity are two of the most renowned benefits of digital payments. A major issue with cash is simply that it’s tangible, takes up space, and is always at risk of loss or theft. New technology is all about efficiency, for example, smaller devices, sleeker car designs, and wireless technology. Cash is made of paper and ink, subject to the wear and tear, pressing, sliding, folding, and ripping due to constant usage.
Cash can be cumbersome to carry and use. Who wants to carry loose change around in their pockets? Additionally, cash holds physical value. If I drop twenty dollars on the ground at the department store and someone finds it before I do, I’m suddenly down twenty dollars.
Check payments are not convenient. Writing a check in a busy grocery store line is time-consuming and awkward, while check readers are notorious for giving cashiers fits. Individuals also have to balancing their checkbooks, where a minor mistake can cost hours.
Merchants loathe checks, as it can take basic bank transfer days to complete. Check deposits typically won’t be applied to a store’s balance for several days.
Digital payments are as simple as a tap or a swipe, and a transaction takes only a few seconds. Slim cards require minimal space, thus efficient and easy to keep track of. Though they can be lost, canceling and replacing a card usually does not impose losses as with cash. Apps and online accounts eliminate time streamline personal finances and greatly reduce the risk of problematic oversights.
As digital payments are virtually instant, they give merchants near-immediate access to revenue. In turn, they can use it as needed rather than having to wait for it to appear in their accounts.
Digital payments are overall simpler and faster than cash or checks, allowing customers and merchants to enjoy the free-flowing convenience.
Flexibility
Digital payments also offer far more flexibility than cash. It’s no secret that cash has its limits. Many people no longer carry enough cash to make large purchases. Recent studies show that people spend anywhere from 80 to 100 percent more with cards than with cash because they have more purchasing power through digital means.
Online shopping can’t be overlooked, either. Globally, people spent an estimated $4 trillion online during the last year for which information is available. That figure is expected to surge to new heights during the coming years. Establishments that offer their customers a convenient online payment options will certainly benefit from the resulting spending increase. Those that don’t will miss out on not only local revenue but regional and even global sales as well.
Greater Security
Digital payments come with greater security too. No doubt, there’s a great deal of concern over the safety and privacy of online shopping and the use of credit and debit cards. With the use of the right payment platforms, both customers and businesses can enjoy unprecedented security.
From online payment solutions to in-person point-of-sale terminals, digital payments have become more secure than ever. Numerous levels of encryption have come into play, and a long list of additional security features is now available. From basic PINs to multi-level biometrics, today’s digital payment options offer numerous layers of security.
While it’s certainly true that bank accounts can be hacked and credit/debit cards can be stolen, all the security features in place today help to thwart the dangers. Lost credit or debit cards come with a substantial level of fraud protection, so losses can be mitigated with a mere phone call. Credit/debit cards can also be reported stolen and immediately deactivated.
Exploring the Different Types of Digital Payments
Considering all the advantages of digital payments, it’s clear why they’re becoming the rule rather than the exception. In addition, several types of digital payments now exist. That gives consumers even more freedom during their shopping and bill-paying adventures. It also gives merchants more ways to benefit from the available options.
In short, digital payments encompass any type of transaction that’s completed online or using a card rather than cash or check. Not every establishment will have the full range of digital payment options, but they can select the ones that deliver the most benefit for their clientele. Many of these payment options help merchants elevate revenue by giving patrons more freedom and encouraging them to spend more.
Mobile Points of Sale
On the most basic level, mobile points of sale are gaining a great deal of popularity. They allow merchants to transform their mobile phones, tablets, and other devices into point-of-sale terminals. By simply setting up an mPOS system, merchants can accept digital payments from customers anywhere Internet service is available.
These are often then used as in-store payment systems, but they’re not limited to stationary purposes. Whether you’re operating a food truck or traveling around selling homemade soaps at a crafts fair, a POS can offer significant advantages. They’re convenient, flexible, and secure for both vendors and customers.
Contactless Payment Options
Contactless payments are becoming increasingly common as well. They offer even greater speed and simplicity than their predecessors. If a customer’ card displays the wireless icon, they can simply tap their card on a point-of-sale terminal, and their transaction is complete. With these terminals, consumers can also simply hold their phone next to the reader to pay by NFC, essentially a radio connection known as NFC (near-field communication), which is essentially an exchange by radio.
In summary, contactless terminals essentially tap into the consumer’s card or mobile device to allow purchases or payments without having to touch the card reader itself. That has certainly become a very appealing feature in the post-COVID era.
Making the Most of Digital Payments
Digital payments have now outpaced cash and checks. In view of their speed, convenience, and security, they’ve become the preferred option for both consumers and businesses. A variety of digital payment solutions is now available, and the list will certainly grow as we move forward.
Xpress-pay is here to help clients and their customers take full advantage of the options at their disposal. We offer a range of digital payment solutions to suit the needs of virtually all businesses, organizations, and governments. Our team is proud to provide clients with superior security, unmatched versatility, and affordability, so you can enjoy all the benefits of digital payments no matter what your unique requirements may be.
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/