Guide to Different Types of Payment Methods for Businesses
The main goal that every type of business is to increase revenue and grow sales. Alongside implementing different marketing strategies, companies should offer different payment options to achieve that goal.
The survey has shown that two-thirds of adults made or received a digital payment; meanwhile, cash remains a common payment method for many businesses.
In the article, we will discuss the importance of having different types of payment tactics and explore their characteristics.
Importance of offering your customers different payment methods
First, let’s give a clear definition of what payment method is․ Simply put, it is the way that your customers and clients use to make a purchase. And in the decision-making process, they look for the most convenient option for them. This is true both for buying something from a physical shop or online store, especially with eWallets.
Thus, having multiple options can deliver a positive customer experience and, as a result, increase sales. On the other hand, you can lose customers not providing a perfect checkout experience.
Understanding your customer preferences is an important step in this stage to find the right permanent method. In addition to this, the type of your business and your products play a huge role in which payment method you will implement.
For eCommerce businesses, online payments will be the obvious choice, whereas coffee shops can offer their customers. In this stage, businesses can organize team meetings using the SharePoint calendar and effectively discuss what payment system would be suitable for them.
Several types of payment methods your business should consider using
After understanding why your company should care about having different payment methods, in the next stage, we will examine different types and discuss both pros and cons.
Cash is still important
Although cash is the oldest payment tactic, it is still frequently used. After Covid-19, more and more businesses prefer to shift to online payment methods, but there is a huge number of companies that continue to work with cash because it is secure and can deliver quick transactions.
There are cases when businesses not only have cash as a payment option but accept only cash. There are different factors that influence business owners’ decision to work as cash-only businesses.
The cash system can benefit businesses in several ways:
✔ Not giving additional fees
✔ Avoiding credit card fraud
✔ Getting payment quickly and not having payment delays
As in many situations, in this case, also cash payment system has disadvantages too. Your customers could have trouble paying cash if they didn’t withdraw cash in advance.
Offer debit and credit cards
In the next stage, we are going to speak about debit and credit cards operating similarly but also having essential differences as well. Credit cards allow people to borrow funds from banks late and later pay them back. But in the case of debit cards, customers can withdraw money from their bank account.
It is an important factor to consider card payment method is convenient for both online and offline purchases. Businesses need just a POS machine To accept debit card payments. These cards can be effective for online transactions as well. But in case customers prefer to have cash, they can easily withdraw cash.
Credit and debit cards are simple and convenient to purchase. Although it sets a budget, customers can buy everything even if they do not have funds. When traveling abroad, customers can use cards to make purchases with better exchange rates.
Another great advantage is that it is a secure tactic, and against fraud, using debit cards is the extra layer of security when completing a payment. Customers can inform about missing by calling and thefts but won’t be able to use the card.
Credit cards offer rewards for their spending; when a customer use cards, they get back a small amount. Debit cards allow you to spend from your bank balance within the daily limit set by the bank.
It is important to consider that different online payment systems offer credit card bill payment options, and they are preferable choices for being very easy to use and time-saving methods.
Prioritize mobile payments
More and more customers use their smartphones to connect with businesses. They also make purchases through their smartphones. And being an easy and convenient way popular method amongst people, not only for customers but businesses widely use mobile payment to quickly accept payments. Statistics prove that in 2023 will be 1.31 billion mobile payment transaction users worldwide.
Customers simply include debit and credit card details to make online purchases. Both companies and customers prefer mobile payments for the following reasons:
✔ They are a quick method
Online payments are a great chance for businesses to save a lot of time and dedicate their efforts to other tasks. Customers love mobile wallets and other similar options because they can immediately make a purchase.
✔ Mobile payments are convenient
Regardless of time zone and location, customers can buy their preferred products and solution. In this matter, mobile commerce transaction is vital for the e-Commerce industry, and online stores can offer smooth mobile payment processes to their customers, boosting customer retention.
✔ They deliver a positive customer experience.
As the payment process goes smoothly; as a result companies strengthen their relationships with customers, who continue purchasing from that particular business.
✔ They are the secure payment method
Mobile wallets and apps are secure ways, become to start using them, people should pass thumbprint authorization and facial recognition authorization and take other steps as well. In this stage, you may work with a business that creates print ads for your company, then paying them via mobile apps will be a smart decision.
All these benefits we mentioned prove that the number of businesses that will implement mobile payment systems will increase.
To sum up
In the digital world, businesses can continue to offer their customers to pay cash and suggest digital payment methods. In the article, we discussed the different types of payments and spoke about both their advantages and disadvantages.
Delivering a better checkout experience and finding the right payment method businesses can guarantee their growth.