Why Implementing Different Payment Methods Pays Off
Technological advances help create a better world sometimes. Can you imagine paying for goods with sand, seashells, animal skins, etc.? Because, yes, centuries ago, people used to do that. Luckily, you can now buy a product and pay for it later, borrow money, use cryptocurrency, and the list doesn’t end here.
From wire transfers to checks, payments differ, and so should the payment methods in your company. Variety can improve your brand’s image by showing consideration for every category of individuals and their financial possibilities.
If you want to market your business, why not accept cryptocurrency as a payment method? Or have you thought about trading vouchers for money? Keep reading to understand payments and see how you can attract a broader category of consumers.
Digital currency is all the rage, and businesses are jumping on the bandwagon for various reasons. Some companies, like KFC, implement crypto payments to gain popularity. Others want to facilitate their transactions.
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Even institutions are nowadays more open towards Bitcoin, Ethereum, BNB, etc., especially since developers are looking for ways to make the blockchain greener. Ethereum’s updates this year, for example, attracted attention and favourable publicity.
Unlike the other payment methods mentioned above, Bitcoin is still in its early stages. However, one advantage to this cryptocurrency is that it only necessitates an Internet connection to make a payment. Payments may be conducted as long as both parties have a digital wallet on the same network.
If crypto is appealing to you and you’ve been wondering how digital coins like Ethereum work, here’s your answer. Check the current Ethereum price, get the Binance app, register on the exchange, and invest in some Ethereum. It’s among the most popular crypto exchanges globally, and for a good reason: it’s safe, secure, and easy to use. Remember that you must pay attention to the crypto exchange and storage methods you choose.
When thinking about what to do with the cryptocurrency received, know that you can trade it for other digital assets on the exchange, trade it for money, or store it to have a more diversified investment portfolio and minimise the financial risks.
However, you shouldn’t forget that cryptocurrencies, like other financial assets, are volatile, so if you’re interested in buying and trading crypto, use common sense and don’t invest more than you can afford to lose.
“Buy now, pay later,” or BNPL, is a loan provided by a BNPL firm to consumers to purchase products on credit but without using a credit card. BNPL is very popular for online purchasing, and several brick-and-mortar stores now accept it.
A BNPL service gives credit to clients, including those who don’t have credit cards, and there are usually no fees for users to access the service. Customers repay the loan in instalments with no interest unless a payment is missed. Even then, interest rates on credit cards are often lower. Customers are frequently encouraged by BNPL to spend more than they would with a standard credit card, debit card, or cash.
However, even if BNPL services don’t charge your clients high-interest rates, be aware that they can charge you higher percentages. Here are some examples of successful BNPL lenders to inspire you, should you want to join in:
Apps running on tablets, smartphones, and wearables connect to your customers’ bank accounts or credit or debit cards and provide mobile wallet services. Samsung Pay, Apple Pay, and Google Pay are some examples.
After creating a mobile wallet account, a person can use these applications to pay for items from sellers who accept mobile payments. Your clients may use mobile wallets at your brick-and-mortar store, tap-to-pay terminals, or in an online shopping cart while purchasing things via the internet.
While they are not as widespread as debit or credit cards, their popularity is rising. In 2021, global customers will spend $1.786 billion on mobile payments, and according to financial analysts, that number might triple by 2028.
If you’re considering allowing your customers to pay with their mobile wallet, remember that you’ll need a designated payment terminal to accept tap-to-pay transactions in a physical store. Many mobile wallet applications also impose transaction restrictions on their users, often significantly lower than most credit card limits, possibly limiting the size of a customer’s purchase.
An autopay system debits a person’s bank account or debit or credit card on a predetermined schedule, generally once a month. Monthly subscriptions, credit card payments, periodic charitable donations and utility payments are typical uses for autopay.
This payment method promotes customer retention because they can schedule automatic purchases rather than reauthorise payments every month. Your customers may prefer autopay since it takes some stress off their shoulders, knowing their favourite services or products pay for themselves. They don’t have to remember to pay key bills, like electricity or phone service.
Yet, this type of payment can only apply to specific transactions occurring on a regular basis, and it can’t work for any transaction or one-time purchases.
Some consumers still pay with physical checks, either via a bank’s cashier’s check or from their checking accounts. These are promissory notes that you can redeem for cash at a bank. Checks have nearly no purchase limits for your customers; they can write one for whatever amount is in their bank account.
However, remember that financial criminals have long used them to scam retailers. You should also invest in check processing machines that handle such financial transactions to prevent the danger of bounced checks. Since these cost a few bucks, don’t invest in something that’s unlikely to pay off, especially if there are risks involved. Or at least, think of how you’ll minimise the risks.
You can ask for payment in advance in some contractual agreements. In most service agreements, as a payee, you must deliver on your promises after receiving funds and are obligated to execute the contract. You must adhere to the proper accounting guidelines that limit your ability to report revenue until the payment is actually earned.
All in all, providing several payment options simplifies the checkout process for your customers since they can use their favourite payment gateway or one that meets their specific needs.
Assuming you’re doing it right, such upgrades can benefit your company and ROI, but you should ponder considerably before jumping on one because needs differ among regions.