Today’s consumers like to have everything at the tap of a finger. Although the COVID-19 pandemic showed advantages of having an online store in times of lockdown and social distancing, this was good for business even before that. But, not all companies are as quick to accept payments online even when selling their goods over the internet. To see what kinds of gains you can expect by taking this step, here are the top 8 benefits that will show you why it can be good for business.
1. Getting Immediate Payments
One of the reasons companies love online payments is that the money is immediately on your account. This is a great option for both you and the customers, providing a transparent and clear exchange of money. The exchange also leaves an online receipt as proof of payment for your customers and assurance they will receive the item.
Since collecting debt from customers is not only unpleasant but also can cost you extra, encouraging online payments may save you the trouble of hiring collection agencies. Moreover, it will improve the management of cash flow, as well as decrease the risk of losing money and time on unreliable customers.
2. Reaching Customers Worldwide
Regardless of where you are, you can have customers from all over the world thanks to online payment options. It also doesn’t matter what currency your customers use since it will be automatically transferred to your account into the desired currency. This is a good way to expand your business outside your country and increase the profits with global sales.
3. Having an Advantage over Other Local Businesses
You share customer profiles with your competitors and have an advantage over them to get you a better position in the market. This means that after you introduce online payments, you will gain one more aspect to attract customers that your competition lacks. If you are trying to stand out on the local level, this may be a good start to cater to your community and build a positive reputation.
4. Raising Sales
The fact your customers don’t have to leave their homes to shop in your store makes online shopping more attractive. So, allowing for this type of payment can increase your sales since it’s more likely that consumers will buy more than one item at once to reduce the costs of shipping.
Also, accepting online payments can inspire another consumer behavior — impulsive shopping. People have a different perception of cash and funds on their credit cards, according to a 2001 study at the Massachusetts Institute of Technology. Paper money is tangible and when you spend it, you will physically confirm you have less of it. Whilst, credit cards offer not only the money you have, but also you can loan from banks.
5. Attracting more Customers with Last-minute Deals
One-time or last-minute deals are a sales technique that can increase profits and bring more customers. With online payment solutions, you can gain even more purchases since shoppers can choose what they want, pay for it, and wait for the shipment without finding time to physically visit the store. However, last-minute deals are also customer-magnet because they offer great discounts that can encourage them to shop more.
6. Allowing for Referral Marketing
Online payments are not only convenient but can have a role in referral marketing. To attract more customers, you can establish an affiliate program that will bring special benefits to buyers refer others to your store. That way you will not only increase the sales but also create loyal customers who will regularly come back to shop.
7. Reducing Costs
Having an offline store means you need to rent space, hire cashiers, sellers, and managers, as well as other costs for running such a business. If this is something you want to cut down or don’t have enough money to start an offline business, accepting online payments allows you to be solely an e-commerce business. This will keep your costs to a minimum while at the same time giving you room to be successful, grow, and expand.
8. Building a Good Customer Relationship
Customers will appreciate more options for payments and that you are giving them choices — whether to make payments online, pay upon arrival, or come to the store. Another plus side of paying online is the fraud protection, giving assurance that you will get your money back if you don’t receive the goods. The secure payment brings lower financial risks for both you and your customers, helping you establish a respectable image on the market and a good customer relationship.
Customers are one of the defining aspects of any business. If anything can be concluded from these benefits of accepting online payments is that it can bring more customers and more profits your way. Although it will take more than upgrading your payment methods to build a respectable business, this is surely one of the precursors to getting there.