As the world rapidly moves to a more digitized era, digital payments are growing in popularity while traditional payment methods are declining across the world. This growth was majorly fuelled by the change in customer behavior in the thick of the COVID-19 pandemic. Most people preferred contactless payments and online shopping, and forward-thinking businesses had to rise to the rapidly changing customer expectations. Today, many businesses have adopted digital payments in a bid to provide a frictionless customer experience. The good thing is that these businesses are experiencing business growth while at it. If you are trying to take your business to the next level, digitizing your payments should be your next step. Here’s why.
1. Improving cash flow management
An improved cash flow is important in showing the true position of the working capital of a business. In addition, it gives clear visibility on when and how to use cash, improving business operations and driving business growth.
Digitized payments give customers a wide variety of payment options, which leads to faster payments. Moreover, processing digitized payments are much faster unlike where they have to queue up in the case of traditional payments. The accelerated customer payments allow faster reconciliation and real-time cash flow visibility to inform faster and well-informed business decisions.
2. Enabling multi-currency payments
The internet is breaking down geographical borders, allowing businesses to expand operations across the world. However, traditional payment methods pose different challenges such as hefty forex rates, unexpected delays, and long payment processes when dealing with multiple currencies. This derails business growth efforts.
Digitizing your payments gives you access to a multi-currency wallet that holds different currencies simultaneously. What’s better is that it eliminates the obstacles that come with traditional payments. This makes it easy to collect payments from your global customers, streamlining cross-border payments.
3. Enhancing customer experience
Customer experience is a key determinant of which businesses to stick with for the modern consumer. So if you are to create repeat business and drive business growth, improving customer experience is paramount.
Today, customers want the convenience that comes with paying for their purchase from where they are or in the comfort of their homes. Moreover, they expect smooth and secure transactions for an effortless payment experience. Traditional payments limit this possibility, as it would mean finding a bank to complete the payment. It would also mean carrying cash around, which raises safety concerns.
On the other hand, digital payments are safe and secure. It is also convenient and easy to use such as allowing guests to check out without having to register an account.
4. Reducing resources used
The more resources that you free, the more business growth you can experience by allocating these resources to other areas that need them the most. Adopting digital payments enables your business to free up resources in several ways. One, the ability to hold payments in a single platform as well as faster processing allows for quicker and more efficient reconciliations, freeing up manpower to focus on other important roles.
Two, unlike traditional payments that are associated with fees and other hidden costs, most digital payment solutions come with fixed fees. In addition, integrating your digital payment platform with accounts receivables send electronic payment reminders to customers. Besides allowing error-free reconciliations, it saves time that could have otherwise been used to check invoices and send reminders manually.
Lastly, digital payments are secure from fraud and theft, unlike traditional payments where security and storage costs have to be factored in.
How to choose the best provider for your business
As the digital payment landscape grows, more players are emerging, each promising better benefits than others in the market. Before choosing a provider, it is important to compare different options to find one that fits you the most. For instance, Airwallex, Wise, and Revolut are multi-currency accounts, but the fees involved vary. You can read the Airwallex review to gain more understanding of what it has to offer. Then read reviews for other providers to compare.
Other considerations to keep in mind include:
- Features included
- Integration ability
- Safety standards
- Ease of use
- Efficiency of processing
Businesses across the globe are switching to digital payments in a bid to deliver the best experience and enhance business growth. If you haven’t already digitized your payments, you are lagging behind the competition. Digitizing your payments can help enhance customer experience, improve cash flow and streamline foreign payments among other advantages. However, be sure to compare several vendors before settling on a provider.