There are several ways to make a payment with today's technologies. For example, businesses today can accept payments made by cash, credit card, cheque, and other means. If your business already accepts payments from clients, you might be wondering how adding additional payment options can affect your bottom line?
Overall, flexible payment options can actually help both the customer and the merchant. For example, when customers are provided with a range of different payment options, this not only promotes quicker payments but can improve customer loyalty. Businesses with multiple transaction methods can also help reduce costs for the merchant.
Continue reading to learn more about why it is important to offer payment flexibility, including what payment methods are a must to have, and more
Why Is It Important to Offer Payment Flexibility?
Payment Flexibility Promotes Quicker Payments
Offering clients a variety of payment options can accelerate the processing of payments.
For example, consider a company that only accepts payments by phone or mail. To ensure that their payment is received in time, customers must call during regular business hours or mail their payment in advance.
Instead, if the organisation offers 24/7 payment options, such as an online gateway, clients can pay whenever it is convenient for them.
For in-store purchases, debit or credit cards can also provide customers with an instant means of payment as opposed to a paper check. Take note, however, that the quickest way to collect payment is through a contactless transaction.
Payment Flexibility Reduces Costs
Flexible payment options can help both you and your customers save money. For example, when you have flexible payment alternatives for your business, this automates procedures like processing recurring payments and sending payment reminders.
This not only reduces manual labor, but these same-day payments and payment reminders help assist customers to avoid late fees. Customers can, therefore, also save money by sending payments electronically and avoiding the expense of printing and mailing paper checks.
Payment Flexibility Can Improve Both Customer Loyalty and Retention
Customers will find it more convenient to pay their bills when the procedure is made simpler and takes less time, which will boost customer satisfaction. The best-equipped companies to handle these expanding customer demands will be those that provide flexible payment choices, which will increase client loyalty and retention.
After all, customers look for vendors who make doing business with them simple. So, focusing on electronic invoicing and billing solutions is more crucial than ever, especially given that today's consumers are increasingly accustomed to using digital devices.
What Payment Options Are a Must For a Business?
Cash
Of course, the simplest form of payment you may accept is cash. Cash also eliminates the need to investigate payment processors or be concerned about any extra transaction fees.
Credit/Debit Cards
One of the most popular payment methods that small businesses can provide is card payments. Paying with a debit or credit card is quick, easy, and ensures a smooth transaction.
Take note, that customers today will typically anticipate businesses to have options for processing debit or credit card payments.
Receiving payments by credit card immediately improves your reputation and customer service. Additionally, credit card payments offer an extra measure of security and make the checkout process simple.
Contactless Payments
The phrase "contactless payment" describes a safe way for customers to use a debit, credit, smartcard, or another type of payment device to make purchases by utilizing near-field communication and RFID technology. Some banks and merchants also refer to contactless payment as tap-and-go or tap.
When a point-of-sale terminal with contactless payment technology is nearby, this payment method can be used by tapping a credit card or other object on the terminal.
Final Thoughts
Accepting multiple payment methods can benefit both the client and the merchant. For example, offering clients a variety of payment alternatives can not only increase customer loyalty but can also encourage quicker payment processing. Businesses that accept a variety of payment options can also help the retailer save money.
Overall, the top 3 best payment flexibility options include cash, debit/credit, and contactless payment. Of these three methods, take note, that contactless transactions are the most preferred by customers. After all, these transactions are an easy and most convenient way for customers to pay.
