5 Traditional Payment Practices That Hinder Growth
By Alice Chen
Change is sometimes necessary when it comes to payments. It can be a business’ Achilles’ heel to do things simply because “it’s always been done this way”. With new, emerging technology and changing consumer behavior, merchants will do well to exercise agility and ability to adapt. The following five traditional payment practices may be hindering your growth.
1. Only accepting cheque and cash
Whether you’re a new local boutique or an established global wholesaler, if you still only accept cash and cheque, you could be losing out on sales.
The preference of more and more B2B and B2C customers is to pay with credit and debit cards so the ability to accept credit cards can help you better cater to your clients. Both businesses and consumers may prefer to use credit cards for added benefits like travel points, rewards, cash back, etc., and they’ll appreciate the luxury to be able to choose their preferred payment method.
Beyond accepting credit and debit cards, you may want to think about expanding your payment options to other forms of electronic payments like mobile wallets or cryptocurrencies if it makes sense for your business.
2. Invoicing the traditional way
Traditional paper invoicing is time-consuming and tedious for many businesses. With paper invoicing, there are manual account reconciliations, lost cheques, late payments, bad cash flow, and arduous filing.
Switching to digital invoicing allows you to streamline your payment processing and administrative duties. You can send invoices electronically to your customers who then pay in just a few clicks. Also, you can set up automatic reminders to avoid late payments, preventing stagnant cash flow.
A cloud-based invoicing platform makes storing transaction records and client payment information convenient and secure – you can access your transaction data anywhere, anytime, minimizing the risk of misplacing invoices and your scope for PCI compliance.
3. Having a clunky checkout process
In the age of ubiquitous connections and instant gratification, customers expect fast, personal experiences throughout the customer journey regardless of channel. These days, the more friction there is during the path to checkout, the higher the chance that customers will abandon. Whether your business is online or in-store, you have to increase ease of checkout.
One way to speed up your online checkout process is through recurring billing; it increases your efficiency, streamlines your day-to-day transactions, and saves your customers from providing their credit card details every time.
A fast checkout process means only asking for essential information. By rearranging the order of the fields, you can automatically determine certain information, reducing the number of checkout fields required.
- Put the zip/area code field first to automatically populate the city, state, and country fields.
- Set the most inexpensive shipping method as default.
- Use an algorithm to automatically detect the credit card type by the first few digits.
The number of consumers paying with mobile wallets or EMV cards via tap-and-pay is increasing. Contactless payments are fast, secure, and convenient; consumers simply tap their phone or chip and PIN card to complete their transaction. If you haven’t already upgraded Go to the full article.