Digital Payments Can Benefit Your Business – An already increasing digital market is now the norm as the pandemic of the past two years has made it essential for public health. Businesses that could not adapt to contactless methods of receiving payments and delivering goods found it challenging to compete with those who did. If you haven’t implemented digital payments into your business model, you may find doing so is more accessible than you first thought and may provide benefits you hadn’t considered.
Definition of Digital Payments Method
A Digital Payments Method is an electronic payment method that transfers money from one account to another using a digital device such as a mobile phone, computer, wireless data, SWIFT (Society for the Worldwide Interbank Financial Telecommunication) etc. This Method includes payments like bank transfers, mobile transfers, and payment cards, including credit cards, debit cards, prepaid cards etc. Digital payments can be partially digital or else fully digital.
For instance, partially digital payment is the one Method in which both payer and payee use cash through third-party agents, with providers creating digital bank transfers in the backend. An entirely digital payment is one in which the payer releases the amount to an agent who receives it digitally, but then the payee gets the amount in cash from that agent.
Digital Payments Defined
A digital payment is any method of sending or receiving payment electronically without needing cash or paper checks. The most common digital strategy is a credit card or an ACH (Automatic Clearing House) payment from a bank account. Still, many people now use smartphone applications connecting to their bank accounts. These apps allow purchasers to have all their payment methods in a digital “wallet or purse” to use for purchases online and in stores.
Accepting Digital Payments
There are several reasons why businesses should consider accepting digital payments:
- It’s what more and more customers are expecting. Customers may take their business somewhere else if they can’t pay digitally. Receiving digital payments dramatically increases your customer base.
- It saves time. Programs offered by companies like Xpress Pay and info.xpress-pay.com give you options for receiving and seeing all transactions in real-time. Their platforms automatically deposit digital payments into your accounts and can also automatically integrate these transactions with accounting software like Quickbooks. This can save hours each week in accounting work.
- It assures payments are received on time. Receiving payments digitally means you can be paid immediately after completing a job or starting an order. There is no running to a bank to ensure a check won’t bounce or chase after payment for an invoice charge.
- It allows you to receive secure payments through your website, company app, or smartphone. You don’t have to turn away customers who don’t have cash or a check. Instead, you can give them a convenient, fast, and secure way to pay you.
Using Digital Payments For Company Spending
Many will talk about the benefits of receiving digital payments, but some don’t realize the advantages of using digital payments for company expenses.
Just as quickly as income from digital payments can automatically be integrated into accounting software, the same can be said for digital expense payments. Companies are saving time and money by setting up automatic digital payments for reoccurring expenses. Even more, time is saved when these expenses are automatically and fully integrated into accounting software and expense reports.
Many corporate credit card companies have developed apps that allow cardholders to upload receipts and file expense reports through the credit card company’s online portal. Some vendors will even send a digital itemized receipt to the credit card company, saving the cardholder the extra step of scanning and uploading a receipt. Again, these features save their employees time and money in expense reporting. It also lets the business track real-time spending and prevent fraudulent expenditures.
Different Types of Digital Payments Method
1. Mobile payments
Billions of people worldwide choose to pay with smartphones. People use banks’ online services w, allowing People can also transfer money through services like Bizum (Spain). In the Bizum mobile payment method, we need to enter our mobile number and confirm our purchase on a mobile banking app.
This payment method is fast, convenient and secure. We must open our bank’s app and scan the launch’s QR code. After that, we can choose a digital payment method and confirm our purchase.
Credit and Debit Card:
It is one of the most commonly used and oldest payment methods worldwide. It is a card that slides into a payment mortal, which charges a specific amount. Many cards have near-field communication (NFC), facilitating payment without touching the POS terminal. It is also known as “contactless” payment. Recently, we have started using cards virtually on banking apps and other platforms, like “wallets” by Apple and Samsung. The Virtual “wallets” can connect with watches and other smart devices to make payments.
Contactless Payments is a secure payment method using a debit card, credit card or smartcard enabled by (RFID) or (NFC). This digital payment method is growing popular due to its speed and seamless experience.
The biometric digital payments method uses a Biometric ID to verify, confirm, and authorize payments. Biometric ID is a means by which a person can be exclusively identified by evaluating one or more than one distinguishing biological trait. Exclusive identifiers include fingerprints, retina, hand geometry, earlobe geometry, iris patterns, voice waves, DNA, and signatures.
Benefits of Digital Payments Method
Digital payments substantially benefit individuals, companies, governments, and international development organizations. The benefits of going digital include the following:
- Cost savings
- Transparency and security
- Financial inclusion
- Inclusive growth
- Women’s economic participation
Digital Is Here To Stay
Paper cash and checks are becoming the exception rather than the rule. Companies that do not implement methods for receiving and accepting digital payments will fall behind in a digital market that is here to stay.