Marcus RichardsHow your company takes payments is no longer what it used to be. Back then, you only had a few decisions – cash or checks. Then, cards kick in – just an extra option. That was it. However, the digital industry has increased customer convenience and opportunities.
Sometimes, this level of convenience works both ways. Other times, it could make things feel a bit too complicated. There is not much to worry about though. This level of flexibility will change how your customers see your business.
A digital evolution
These days, classic credit card processing has expanded to another level. Practically, there are numerous online payment solutions, the possibility to pay contactless by phone, or even different solutions for eCommerce websites. Mobile payment solutions are the fastest-growing options these days.
Finding the cheapest merchant services for small businesses will give you some good options, but you need to ensure they match your customers – or perhaps the industry.
People like the convenience of having everything on their smartphones. Unlock the phone and tap the touchless terminal – payment taken. While great for shoppers, merchants need to explore a wide variety of options to provide this level of convenience.
Years ago, the solution was quite straightforward. These days, you need to figure out what your business needs – what your customers want. Bringing in everything will also bring in many fees and taxes – not worth it.
Attention to small details
If you are a major supplier for companies, you may not necessarily need the possibility to take contactless payments.
Bank transfers are more common in this situation.
Furthermore, POS services are digital, too – even figuring out the best cash register can be challenging. If you deal both offline and online, your payment systems must be able to communicate for the sake of your inventory and even customer details.
No matter what you are after, one thing to remember is that today’s society is all about convenience and comfort. Having more options is critical. How many people avoid cash-only fast foods just because they hate the idea of finding an ATM before getting their food? Exactly!
Mobile payment systems also represent a plus – after all, mobile payments are gaining more and more notoriety.
Assessing the future of payment solutions
The future of payment solutions is like bringing in a competitive edge. Innovation occurs regularly in this industry, and things change overnight. There is plenty of complexity involved, which could be daunting for some – but at the same time, you can see things differently, too. This is an opportunity.
Multiple payment solutions can reduce costs if you use them in your favor. The transition to cashless payments has occurred within years only. Plus, look at payments without an actual card – such as mobile payments.
The bad news is that at the moment, payments without the physical card carry higher fees than their alternatives. Things are expected to settle, but the market is still innovating.
The possibility to buy now and pay later is another major trend – not necessarily related to payment processors, but you get the point. Many payment processors have also implemented these options. It is easy to tell why – people spend more when they have this option.
People prefer not to worry about it now. Just get what you need and figure out how to pay for it later. Indeed, it is not the healthiest way to see things from a financial point of view, but it works. While some customers default, most people will figure it out eventually.
The recent coronavirus pandemic has taken things even further. While contactless payments were quite popular back then, the pandemic has made them skyrocket. Contactless payments became essential – for some people, this was the only way to pay.
It was not just a way to make customers feel safe, but it was also a way to handle safety regulations. Different countries brought in different rules. These rules brought in a significant increase in contactless solution demands.
Customers learned how convenient it is and never returned to cash – even those anxious about this type of payment and its potential risks. These days, more and more people choose this level of convenience over carrying cash.
The best part about it is that merchants have numerous options. However, what works for some of them will not work for everyone else. You need to understand the most common customer types, assess their needs, and go from there.
For instance, if you are a hairstylist for elders, they are not too good with technology, so cash is still the best option.
In short, payment processors and the industry have changed significantly over the past years. The interesting part is that this change is still ongoing. New technologies and features still pop up regularly – adapting may seem difficult, but it is mandatory for long-term success.
