The online payment gateway is quickly becoming the payment method of choice for businesses and customers alike. Other forms of online payments, as described by Entrepreneur, are also taking off. The main reason for this shift is the ever-growing demographic of internet users. According to Pew Research Center, Millennials are now the largest generation, and they make up the largest market of consumers. Millennials have grown up using the internet, and they prefer online platforms for all of their social, financial, institutional, and commercial needs. Plus Generation X is quickly catching up in internet usage.
As online payments grow in popularity, do they benefit businesses in other ways aside from providing a way to capture the online market? In essence, yes, they do! Here is a brief overview of how online payments benefit businesses.
Rapid Flow of Payment
There are many forms of online payment, and their convenience and versatility indicate that your customers are likely to buy more frequently . With more payment options, you can capture customers that are using credit and debit cards, e-wallet services, online checks, and many other payment options, many of which are incredibly easy to use. Instant purchase means instant gratification, and customers know that their purchase is on the way after clicking that buy button.
Plus, the ability to use a credit card allows for easier purchase of big ticket items, or items that are out of customers’ immediate purchasing range. This also increases the frequency of transactions. Many businesses find that their payment pipeline opens up and money changes hands faster and at greater volume.
Automation and Tracking
Online payment systems tend to allow for far greater automation and more effective tracking processes, which cut down on operating costs, human error, and training costs among others. Businesses receive instant notification of payment, and they don’t have to worry about funds being tied up somewhere.
Payments automatically go through, and businesses don’t have to worry about manually billing clients, collecting payments, and taking in subscription fees. This frees up valuable time and energy to concentrate on other tasks. Plus there is less training involved for employees. All you have to do is set up your store and you can start selling your goods right away.
Finally with tracking, capabilities, businesses know exactly where money is coming in, and with business to business transactions, they know where their expenses are going. Online payment systems can also be integrated with other software packages like accounting platforms, inventory management systems, and payroll systems for increased control and automation.
In the past, a small business typically had to put a lot of work in establish trust among its customer base. Now with powerful and secure online payment platforms, all a business needs to do is integrate its operations with a payment system and customers can order with confidence, knowing that their credit card purchase experience will be pretty much the same wherever they go.
Thanks to advanced encryption technologies and secure payment protocols, customer can rest assured that their payments will go through immediately and securely, which is a net positive for customer trust.
To the delight of internet retailers, online payment systems also allow for many additional marketing opportunities. Thanks to convenient information technologies, it is easy to set up revenue-boosting affiliate programs in which affiliated sites are rewarded for sending customers to your point of sale.
Online payment systems also allow for more sophisticated upselling mechanisms. At checkout, customers can automatically be presented with useful supplements to their purchase, or they can opt in for emails with additional offers. Personalized check-outs also provide opportunities for last minute deals or seasonal offers as the customer shops.
Capture More Market Share
Since internet users now comprise a plurality of all consumers, eCommerce is a huge market to tap into. Further, a lot of those shoppers prefer the ease and convenience of paying online, whether with a credit card, debit card, e-wallet, or another form of payment. Many businesses have websites, but it is important for serious business owners to catch up with the times and invest in an online store with full online payment capability. The businesses that fail to do so are losing out on revenue to their competition. Now is the time to get started!