We all know that business owners need to get paid to keep the lights on. However, how your business gets paid is more important because the payment options you offer will make it either easier or more difficult for customers to pay you – directly affecting customer satisfaction and increasing the likelihood of repeat business. The goal of every business is to grow and increase revenue and having the right mix of payment options can turn that goal into a reality. Today we’ll share why you need to consider all options to achieve your objectives.
Receive Payments Faster
For small business owners, the speed at which you receive payments affects many different aspects of your business. You need funds to pay bills, vendors, utilities, marketing, and other costs to keep everything running smoothly. By incorporating digital payment options such as debit cards and mobile apps, businesses can receive funds within a few hours compared to 3 to 5 business days with ACH, credit cards, or checks.
Of course, nothing is faster than cash. But fewer people rely on it as their preferred payment method, and it is less secure than digital payments. If you prefer payments to arrive quickly, consider payment options such as Venmo, Paypal, and Square. These providers usually handle transactions in just a couple of minutes and are great for instant payments.
Right now, there are many options for getting money into your bank account. You can wait for the ACH transfer (up to 5 business days), write a check, or have a provider mail you a check. All of these options have significant drawbacks. Checks can be canceled, stolen, or lost. With checks, you have to wait for the money to get to you. Debit cards like Apple Pay can be used almost anywhere that accepts credit cards. However, they can take up to 2 business days to get the money into your bank account. Payroll cards, like Gusto, put paychecks right in your bank account with no waiting and no check risk. With one of these options, you’re going to have funds as soon as you need them.
Increased Revenue
By incorporating multiple payment options into your arsenal, you position your business to handle all possible needs. The easier you can make it for the customer to pay, the better the chance that you will increase your profits. Whether you’re an online-only business or brick-and-mortar, the more payment options you provide the customer, the more sales you can expect to make. A seamless transaction will instill trust in the customer’s mind and encourage them to do business with you again.
By providing multiple payment options, you’re positioning your business to handle all possible needs. Not everyone has the same buying power, so you need to make it easy for all types of people to participate in your business. If you’re an online-only business, think about the types of people that you’d want to be able to purchase from you. If you’re a brick-and-mortar store, think about the types of people that would be in your area. Then, integrate payment options that accommodate them!
Whenever you tailor your options to meet the customer’s needs, you allow your business to scale up and attract new clientele. As your business attracts new customers, your business will grow, and customer retention will rise. A loyal customer base that trusts you and is happy with your products, service, and payment options will inevitably lead to higher revenue and a more attractive bottom line.
Fewer Abandoned Carts
According to a recent article, abandoned carts cost eCommerce businesses $18 billion per year. The average cart abandonment rate worldwide is 75.6%, and shopping cart conversion rates are underperforming. The abandonment rate by the specific device is 85% for mobile phones, 80% for tablets, and 73% for desktop computers. While many consumers place items in the cart with future purchases in mind, many do not return to make an actual purchase.
While the numbers may look bleak, recent payment options such as Buy Now Pay Later (BNPL), e-check processing, cryptocurrencies, and digital wallets have allowed consumers to pay with different methods. If you’re not offering these types of options, you should take a deep look at your numbers and consider which of these would make good sense to reduce cart abandonment rates and increase sales volume.
Consumers Expect Multiple Payment Options
Over the past few years, online purchases have dramatically increased and will continue to do so. Customers want the user experience to be up to their standards. Poorly designed websites with payment processes that are hard for people to use for checkout will drive customers elsewhere. If your business does not offer the customer the payment option they prefer, you will not meet their standards and lose the sale and an opportunity to build trust and authority.
Your competition will always be searching for ways to outperform you. If you don’t offer the payment options that other businesses do, you’re setting your business up for failure. Review past transactions to determine what methods your customer base prefers and monitor current trends for alternative payment options to entice new business. Doing your research will help you find the perfect mix of payment solutions that suits your business and customers best.
Reduced Risk of Fraud
Multiple payment options allow you to choose payment methods with enhanced security measures. With contactless cards and chip technology, potential fraud is reduced. Digital wallets allow consumers to store all of their debit card, credit card, and virtual payment accounts inside one app, so the risk of stolen credit card numbers is almost non-existent.
With digital payment solutions, check fraud is a thing of the past, and the merchant no longer has to deal with bounced check fees due to insufficient funds or stolen checks. All payment solutions have anti-fraud measures in place to protect merchants and consumers. The Payment Card Industry Data Security Standard (PCI DSS) ensures that merchants and payment gateways provide payment solutions that increase cardholder data security and decrease potential fraud.
Lower Processing Expenses with Multiple Payment
With multiple payment options, you can reduce your reliance on one payment provider and spread the costs over several solutions that can help you choose where you can lower processing fees. While fees may be unavoidable, you can incorporate low or no-cost options to save more money. Just be sure to compare fee structures and pricing to determine the best scenario for your bottom line.
As you can see, there are several reasons why you need to incorporate as many payment options as possible. Implement the solutions you need so your business can remain competitive and relevant.
