Since the 70s brought computers under mass ownership, the process of electronic payments has become quite popular. Though previously, these weren’t as systemic and organizational as they are right now, there’s no denying that electronic funds transfer brings with it a lot of ease and convenience.
Going electronic with their payments is beneficial for the business in terms of its administrative, operational, as well as customer experiences. Let’s dive into the ifs and buts of this shift towards electronic payments!
However, since a large part of the global customer base still relies on traditional payment systems, businesses often inquire if it’s really worth working towards entirely digitized, electronic payment methods. To answer their question in a word, yes. Electronic payments do have valuable benefits for businesses.
Businesses benefit from electronic payments because they:
These days, almost every small, medium, and big business can find its own use of electronic payments. The choice, however, ultimately lies with them and whether they ‘need’ to opt for electronic means for their payments. Both service-based and product-based, online and offline businesses can go for electronic payments.
Here are some basic categories of the businesses that can, should, or need to go electronic vis-à-vis their payment systems:
First up are those businesses that operate electronically. Hence almost all of their organizational payments and sales revenue is in electronic form. E-commerce stores can only exist in the digital space and provide digital services, physical services, digital products, and physical products.
Similarly, those businesses that run their business online as well as in-stores also classify as e-commerce stores. Most of their online and a little lesser part of their in-store payments are electronic. However, those businesses that exist only physically might not always make concrete use of electronic modes of payment.
Affiliate marketing through electronic media also makes use of electronic payments. Since affiliate marketing happens mostly through online endorsements and contracts, businesses involved in this field prefer to keep their payments electronic as well.
YouTube channels, Instagram influencers, Facebook bloggers, and Twitter celebrities run their businesses by monetizing their channels and activities. They’re often contracted by other business owners for brand publicity campaigns, which is where electronic payments come in — big time. These platforms themselves also make use of electronic payments for their subscription plans, plugins, etc.
Online marketplaces such as Craigslist, eBay, Amazon, Upwork, Fiverr, etc., heavily rely on electronic payment systems to function. From buying electric ovens to hiring freelance graphic designers, businesses that sell their products through these platforms have to keep a cashless, digital payment system, especially if they’re trying to benefit from the global outreach available here.
Lastly, digital products such as apps, books, courses, podcasts, etc., launched by online or offline businesses sell more if they are available through electronic payments. The businesses that produce these products find it more convenient to fund these projects through getting electronic payments for early access, beta versions, and premium packages.
It’s simply much easier and sensible to purchase and upgrade these products when there’s electronic payment involved.
The biggest advantage of using a mobile digital wallet is its transparency and ease of use. At the same time, they’re completely useless without a device and an internet connection!
Business-to-business and business-to-community engagements deal with two types of electronic payment methods: credit and debit cards and mobile digital wallets. Of these two, cards have a more traditional and established repute.
They are believed to be more convenient than paper currency. They are accepted almost everywhere, take up less space in your wallet, and still have a physical existence which many customers long for.
However, this long-established hegemony is steadily being challenged by the advent and normalization of digital mobile wallets. Mobile wallets are completely electronic, and the only physical existence they have is the device on which they’re installed.
Regardless of their features, both have their own uses. Here’s how mobile wallets and credit/debit cards gain advantages over one another:
Mobile wallets are protected by passwords, algorithms, and encrypted codes. Unless you hand over your mobile wallet’s particulars to someone, there’s no way they can steal from your wallet’s balance.
Credit cards do possess a certain degree of security, too, because you don’t have to carry currency here, either. With that said, these cards themselves are vulnerable to pickpockets. Once you lose them, you have little time to spare before the thief wipes your account clean.
With mobile wallets such as PayIt for business, all you have to do is set up an account once and connect it to the purchasing sites you’re using. They simplify all your monetary handlings in the form of apps, interactive language, and even chatbots.
They give you a record of your fund transfers whenever you need it and notify you about rewards, discounts, price changes, tax details, etc. In short, they’re more than just a wallet. They are your on-the-go financial assistants.
Speaking of credit or debit cards, you can’t say the same. You have to enter bank details and verify your purchase every single time. They might have their own loyalty rewards and discount features, but they’re not exactly interactive.
They’re mere plastic rectangles, and to find out more about them, you have to resort to your bank’s customer support or mobile app.
One of the strongest points of mobile wallets is that they’re independent and do not outsource your data for any purpose whatsoever. All your dealings are completely transparent and clear, and nobody gets to know their specific details without your consent.
Credit cards sometimes have shadier processing and information handling criteria. They’re also more susceptible to fraud because they aren’t as transparent or as interactive as mobile wallets.
The number of digital wallet apps is mushrooming, but that doesn’t mean that everyone currently using a debit/credit card or traditional currency is willing to make the switch. Despite their advantages over cards, digital wallets are still a cultural shock in many places, particularly developing countries.
However, in countries where digital wallets are used, they’re quite widespread. Businesses in these countries, such as the UAE, still accept credit and debit cards for most of their transactions. However, they are beginning to rely more and more on mobile wallets.
A structural drawback of an electronic or digital wallet is its complete dependence on electronic devices. Unlike credit/debit cards, which do not require any electrical connection to work, you need to be connected to a device with internet access to get your e-wallet to work. So, if you’re somewhere without internet access, or do not have your phone on you, or even if your device battery dies, you’re technically broke on the spot.
One more reason why this reliance on devices is a weak point is that while e-wallet apps themselves have strong security protocols, you can’t say the same for your device. Virus attacks and bugs are becoming more advanced and widespread across the board. This means that anyone with sufficient skills can hack into your phone and steal your private data that’s supposed to be on your phone’s storage.
It’s too early to tell if digital wallets will completely take over the space of cash or cards in the near future, but it’s safe to bet that they’re headed in that direction. Digital wallets are part and parcel of the global shift towards digitized lifestyles, and they make transactions much easier and more convenient than using cards and cash.
With that in mind, we can predict the extent to which digital wallets will successfully be accepted on a global scale. This seems quite possible in developed areas, where we already see this trend taking over.
However, the completely global integration of e-wallets is unlikely in developing areas. If they’re made to be more compatible and convenient with different economic and financial systems over the next few decades, they can become the future of all transactions.
Digital payments open up a new dimension of improving customer experience, enhancing brand image, and improvising a business’s overall financial dealings. E-payment methods such ad PayIt E-wallet may have some limitations, but they are convincingly impressive overall.
Businesses are well on their way to switch to electronic payments and eliminate traditional payment forms. So, it’s best to be ahead of the curve and start using this new technology before you fall behind!