Every kind of interaction between a customer and a business tends to become faster and smoother. This is true for the payment process via digital payments because many businesses try to make it better and faster. In that journey, they try to employ new tactics to receive the money within seconds.
Studies have proven that 69% of Gen Z-ers use mobile banking apps daily or weekly. This fact also proves that businesses that want to get a competitive advantage should implement better payment processing.
Although it can be a challenging task, businesses, regardless of their type and size, have to dedicate effort to implementing a system that quickly receives customer payments. Depending on the fact how companies manage payment processing, they improve cash flow.
In this article, we discuss what fast payment processing is, list its benefits, and also give tips on how to improve payment processing.
What are fast payment processing and why you should care about it
Let’s dive into what payment processing is. The payment process is a long cycle that starts with the consumer paying businesses for their services and products, and then banks approve or decline it. There are several payment options that companies should consider:
- Credit cards – These are physical cards that allow holders to borrow funds to pay a merchant for goods and services
- eWallet – eWallet apps are software solutions that let businesses and customers make financial transactions electronically.
- Bank transfers – It is a payment method that enables both individuals and business owners to transfer money to a bank account.
- Online checking accounts – It is an account that allows owners, entrepreneurs, and freelancers, get paid faster and access their income hourly so they can reinvest for growth.
To fully understand what faster payments are, it will be helpful to compare them with real-time payments. In some cases, those two terms are used interchangeably but, in fact, are different approaches. Faster payments are quick from traditional payment methods, but they aren’t immediate. Typically its process finishes by the end of the following business day. On the contrary, real-time payments are instantaneous.
Next step, let’s explore the benefits of a fast payment process. It is advantageous both for customers and businesses. Not only is it a flexible solution for customers, but they have the opportunity to make payments on a due date, being sure that it will be completed.
Businesses can benefit from faster payments by having improved money management and better time management. Companies can have enough cash flow to implement other projects. Businesses take a series of actions to manage these transactions smoothly.
Financial institutions also benefit when delivering faster payments. The reason is businesses would prefer to work with an organization that will guarantee better.
By offering faster payments, financial institutions can stay competitive by better offering excellent financial services.
How to maintain better and faster payment processing in 7 ways
There is no doubt that businesses should dedicate efforts to having faster payment processes. But the question is how to achieve that. We are going to give some tips that can be your guide in that journey.
1. Accept Multiple Forms of Payment
One tip to have customers pay you faster is to accept multiple forms of payment. There are various payment methods that you can consider:
- Credit cards
- Check and eCheck
- Cash and debit cards.
- Mobile payment
Giving your customers and clients the opportunity to choose their preferred payment option can make the process quicker. And when the goal is to get paid faster, suggest to them several options so they can choose the one that is convenient for them.
To decide which payment methods you can suggest, start analyzing customers’ preferences and habits. As customers likely to choose the version that is suitable for them, they will also pay faster.
2. Send reminders and follow up on late payments
The core of a better payment process starts by clearly communicating payment conditions to the clients. And after that, it will be beneficial to send friendly reminders to your customers and clients.
If you do not receive payment at the right time, you can follow up on unpaid invoices. Calling or sending emails can be great solutions. It shouldn’t be rude and aggressive, but also remember getting paid at the right time is crucial for your business growth. Businesses trying to decide between microservices vs. monolithic architectures should also guarantee that they have a stable income to implement business goals.
To avoid late payments, you should also pay attention to your system, which can be the reason for rejecting payment. Therefore you need to keep your system updated; you receive payments faster.
3. Improve invoicing process
Invoice is the core of a better payment process. And the reason is obvious if your business manages to send invoices faster and receive payments quickly. To achieve these tasks so that you can be more productive and ultimately. To achieve these, your company may consider automating invoices.
Late automation helps solutions send late payment reminders to your clients. Automation suggests multiple ways for you to send invoices. Customers and clients can check invoices by the device they prefer. Automation also gives the opportunity to make invoicing more personalized thanks to customizable templates.
In addition to this, don’t forget to make your invoices informative and provide relevant and vital information. Share details like company name, a description of the goods sold, and sale prices. And also, share contact details on the invoice so the client can easily reach out to you if necessary.
4. Offer incentives for early payments
Giving incentives to customers is a beneficial tactic to reach new customers and retain existing ones. This is true for the payment process as well, as you can encourage businesses to pay faster and before the due date. That could be a discount for their next purchase or an offering of additional products. Another way is creating an offer that the sooner customers pay, the discount can be bigger.
Not many companies consider incentivizing payments, but it will certainly be impactful when it comes to being paid on time. Because having strong relationships with customers and clients is one of the crucial challenges that businesses face. Therefore early payment discounts can encourage customers to continue doing business with you and increase customer loyalty.
Businesses also benefit by increasing their cash flow and getting their hands on cash. It can also decrease the time and costs that go into sending out payment reminders. This type of discount is more cost-effective, in case you have the right strategy and keep the right balance, not damaging your company budget. An early payment discount program shouldn’t cost you companies more than you get as a result.
5. Keep the payment process secure
One of the main crucial factors for making your payments better is taking necessary messages for security. Prioritizing payment security, you create a system that protects not only your business but also clients and customers. Especially rising With mobile payments and online transactions, opportunities for cybercriminals are wider. To avoid the risks of fraud, companies should take the right steps. They should pay attention to IP address verification.
Also, they should consider offering multi-factor authentication and using an SMS authentication service that will help to achieve that goal.
Verify your customers and keep their accounts safe by using strong passwords.
6. Implement digital and mobile payment systems
The study has shown that in 2023, there will be 1.31 billion mobile payment transaction users. Mobile payment is money payment through a smartphone or tablet that qualifies as mobile. Some people use digital wallets interchangeably with mobile wallets, but these two systems have differences as well. While companies use digital wallets for online transactions, that’s not necessarily should be on mobile devices. Instead, mobile wallets work only for a smartphone.
Mobile payment is popular among customers for these reasons:
One one the main benefits of wallets, as they keep customers’ sensitive data, is having secured access. These apps also require users to type a passcode, fingerprint, or use the face scan to open and use them. These solutions also are encrypted, which makes it harder for cybercriminals to attack fraud. It makes mobile wallets more secure, which can easily be compromised.
- Fast approach
What is great about mobile wallets is that they make the whole payment process faster. Only by taking a few easy steps can customers complete a transaction. And they receive They immediately receive confirmation emails.
For today’s customers, convenience is one of the main factors that can influence purchasing history. And mobile wallets are also quick and convenient for making payments. The customer just needs to add credit card information to his wallet and make purchases. A smooth payment process motivates customers to make additional purchases.
These benefits also prove that your business should build a great mobile payment system.
To sum up
Both customers and businesses demand faster payment, and in that journey, businesses try to find the perfect solutions to improve their payment processing.
Avoiding late payments and ensuring fast payments can help businesses to increase their cash flow and build a basis for business growth. In the article, we gave you some tips on which businesses can have fast and better-paying processes.