The benefits of digital payments for small businesses

During the last 12 to 18 months, digital payments have gone for being convenient to a necessity due to preserving public health. Curbing the use of cash and shared devices has meant that contactless payments or fully digital payments have become the preferred way of paying for goods and services.

This new level of digitisation has transformed how businesses operate on a day-to-day level, adding a new level of efficiency to their operations. Here are some of the benefits that it can offer small businesses who take up the relevant digital solutions.

Faster payments

Through the use of certain apps and technology, people can now make payments faster and through more straightforward channels. Those selling goods and services also expect to receive payments just as fast, with instant transfers being in higher demand.

If you’re a customer returning goods, you could be offered a near-instant refund once your goods have arrived back in the hands of the retailer. This can help small business instil greater trust between them and their customer base by reducing delays on essential customer service processes.

SMEs can also immediately reimburse employees for expenses once receipts have been submitted. This can keep employees happier and feel less put out when they’re required to spend their own money for the business.

Digital is the future

There’s now a common expectation that you can pay via digital methods practically anywhere you shop in the modern retail landscape. Whether that’s using contactless, mobile payment apps, or a mobile wallet such as Apple Pay or Google Pay, people want access to simple methods of payment – with digital platforms offering that simplicity.

Businesses which offer these payment methods have found that both new customers can become repeat customers if their digital needs are met. For small businesses, this trend comes as no surprise as cash has already been on the decline. Using Bluetooth card readers have allowed independent retailers to handle digital payments effortlessly.

In terms of business transactions, the shift towards digitalisation has been slightly slower. Due to the pandemic, uptake of virtual card solutions for business transactions or same-day ACH payments for suppliers has increased along with automated invoicing to assist with potential cashflow issues.

Effective eCommerce presence

The last year has shown that having an eCommerce platform is almost as essential as having the necessary digital payment methods. The two work hand-in-hand to address customer needs, providing customers with the goods and services they need which can be ordered and paid for digitally.

This supports the majority of shoppers who utilise multiple commerce channels, sometimes referred to as omnichannel commerce, in order to complete a customer journey. By having an eCommerce presence with a trustworthy digital payment gateway on site, it removes obstacles for omni-shoppers to convert on your site. Implementing enhanced payment security measures to reassure shoppers concerned around fraud, as encouraging the use virtual cards can provide further support.

Small businesses can leverage the data collected via in-store digital payment systems and their eCommerce site to understand buyer behaviour, make forecasts, and benchmark their performance against competitors within their industry.

Digitisation within businesses can drive positive change both internally and externally, especially where finance is concerned. Make the most of the available technology to streamline your processes with automation, provide the digital payment methods that your customers want, and foster better business relationships with suppliers.