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How Electronic Payment Solutions are the First Step into the Digital Age

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How Electronic Payment Solutions are the First Step into the Digital Age

Finance is a big part of people’s daily lives— both on a consumer and professional level. We rely on financial transactions for so much of our day-to-day living. We buy groceries, pay our bills, receive salaries and sales, budget our finances, and so much more. Over the years, many of these activities have moved to electronic platforms, sparking a vast movement in financial technology or fintech.

Nowadays, 64% of consumers use some form of fintech platform. And while the adoption of these tools for payment has increased, there is still some pushback. But the importance of electronic payment systems cannot be denied. We rely on it heavily today. So do businesses. And soon, there might come a time the majority of our transactions will happen electronically.

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Aspects of Payment You Can Digitize

Just what can businesses and people digitize today when it comes to our finances? There are many aspects that have now gone electronic when it comes to money. Here are just a few of them.

Purchasing

Probably one of the biggest shifts in the past half-decade has been the growth of e-commerce. Consumers are no longer just buying more online. They’re actually at a point where many of them prefer it over offline methods. In 2020 alone, amidst the height of the pandemic, e-commerce grew by 27.6%.

Hence, there has been a massive shift towards online payment gateways and systems. Some electronic payment system examples we might be familiar with include PayPal, GooglePay, ApplePay, AmazonPay, Stripe, and so many more. Another growing option is TraQPayments, which merchants can use to collect money via payment links.

B2B Payables

Not only are people buying more in a B2C setting. They’re also starting to shift many of their B2B payables online. Businesses prefer to pay their suppliers, providers, and utilities online. Doing so is not only more productive. It’s also easier to track. Without the problem of unnecessary travel times and queues, business owners and managers can now allot their time towards other more important activities in the business.

Invoicing

People no longer just want to pay online. They want to be paid online as well. Online invoicing has radically shifted accounting and finance in a whole new direction. Because merchants want to pay online, companies should now start thinking about providing digital invoicing options online. These invoicing softwares do more than just online billings— which accounting can then file much easier. They also allow invoice recipients to settle payments online with ease.

Some of the invoicing software and examples that people should start looking into are PayPal and Stripe. However, these two options can be known for their massive fees. So you might also want to look at TraQPayments as an invoicing software option, given it has competitive fees and many other features and benefits.

Accounting and Book keeping

Now that so much money is moving online, 40% of accountants want to automate accounts payable and invoicing. By doing so, they’re able to accomplish bookkeeping and finance tracking tasks faster. For an accounting firm, this advantage could mean being able to get more clients. For an accounting department in a large corporation, that means that accounting managers will be able to stay up-to-date on all finance tracking with very little chance of falling back on work.

Personal Budgeting

Not only can professional accountants automate their bookkeeping. Individuals can also do so at a personal level. For someone who wants to pay their internet bill or water bill, electronic payments will most likely be a more viable option. It removes the hassle of having to leave the office for an hour to head over to the nearest payment center, for example.

There’s also the abundance of budgeting apps on mobile phones now that make it easier for people and families to get better control of their finances.

Payroll

Human resource departments also get to benefit from the growth of online payments’ popularity. 54% of small businesses say that there is room for improvement in their payroll policies and systems. Switching to online payroll services could be one of those improvements for your business.

Online payroll systems help HR departments save time and energy by automating salary computation and making it possible to disburse payments to employees virtually. That, in turn, speeds up the payout process. When employees get paid faster and more promptly, you’ll also have happier staff in general.

Expense Management

If your business still relies on manual systems to disburse, liquidate, and report back petty cash expenses, travel expenses, and so on, then there’s a chance you’re leaving money on the table. Expense management software makes small expenditure management more convenient for entrepreneurs, managers, and finance departments. Because most expense management systems are cloud-based, companies can also collect reports from traveling staff even before they get back to the office. This added edge allows for smoother accounting and more accountability.

Advantages of Going Electronic With Your Payments

All in all, it’s safe to say that electronic payments make our lives easier. And there are many advantages that build that case. If you’re not convinced, these benefits should be able to solidify this case.

Ease of Business

The ease of doing business should be a priority across economies, especially for small to medium-sized businesses. With the added features of electronic payment systems, SMEs can transact faster, take payments from clients and customers wherever they are, and grow much easier than traditional methods alone. 

The pandemic taught us that e-commerce and digital business should be a staple for any business, no matter how large. And more innovations in electronic payment markets make it easier for everyone to do that. Mobile adoption has also helped increase the ease of doing business. 90% of fintech users have used some form of mobile payment.

Saved Time and Resources

Electronic payment options save everyone time and resources. Imagine the decreased hassle of having to buy food because food delivery apps now make it possible to order and pay for food without leaving their home or office.

The cost savings brought about by electronic payments also compound massively. For instance, the cost of sending digital invoices is much lower than having to print and freight hard copy invoices. Invoice management software can also automate payment reminders so that business owners and finance staff no longer have to do so manually when clients fail to pay on time. 

Security

There’s an ongoing debate about the security of online payments, given how cybersecurity threats have risen with time. But overall, online payment options can provide more layers of security. Processes like KYC procedures and authentication steps add more layers of protection to people who send or receive payments online.

The security advantages of electronic payment systems will only improve through time as more protection innovations arise. We’re in the early stages of digital adoption still, and there’s plenty more room to grow, particularly around financial security.

Increased Reach

Businesses that use electronic payment options like e-commerce and online invoicing now have the ability to reach more clients, no matter what part of the country (or even the world) they are. Purchasing trends like cash on delivery and digital wallets are improving transactions online and encouraging more customers to buy virtually. As that reach grows, businesses will only grow more.

The Future of Business with Electronic Payment

All in all, the business world has drastically improved as electronic payment solutions improve with time. And those two will only keep growing together as more businesses and consumers start adopting this new era of commerce.

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What are the Merchant Benefits of Using Payment Links

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What are the Merchant Benefits of Using Payment Links

Whether you sell online or not, you’ve probably spent a lot of time and effort getting customers to the point of payment. So, it should be simple to accept their payments, right? 

Absolutely! That’s why a payment link can be extremely useful in some situations, such as when you don’t have access to card swipe devices or need to accept B2B payments electronically. Payment links are a wonderful alternative for executing transactions fast and easily in these (and other) situations.  

Businesses are realizing the benefits of going digital and are allowing for online sales where the payment process is one of the most important aspects of a successful sale, and you must approach it carefully to ensure that your consumers have a positive experience with it. 

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What is a payment link?

A payment link is essentially a payment technique that allows you to request and accept online payments from consumers outside of your typical online business. It’s usually powered by one of the prominent payment systems, which assures that both merchants and customers’ payments are secure. It also provides versatility in terms of how it can be used. Wherever you sell online, they can be an email invoice, a social network company page, basic checkout pages on a website, or even channels in messengers. 

How do payment links work?

Customers are sent an e-mail, SMS, or web link with a “Pay Now” or “Pay Invoice” option. Customers who click the payment button are brought to a payment page that displays the amount owed. They can safely fill up their billing and shipping information, and the transaction is complete. 

Who would use payment links?

While some companies may use payment links to receive the majority of their payments, others may only use them on occasion. If you’re a B2B company that sends electronic invoices to customers, for example, you may include payment buttons directly in your invoices to speed up payment. 

Alternatively, you could be a tiny B2C business selling at an event without access to card swipe devices or a virtual terminal. You can simply email a payment link to a customer when they are ready to pay. They’ll get it right away on their phone, and they’ll be able to finish the payment details quickly by inputting their credit/debit card number or selecting a payment wallet like Paytm or Google Pay. 

Making payments in today’s expanding e-commerce markets should be all about simplicity, security, and speed. There are multiple payment methods that have progressed over time, from cash to cards to digital payments, with each advancement being more convenient and advanced than the previous. Payment links, on the other hand, are a significant mechanism that is gaining popularity and traction.  

Here are some of the most important merchant benefits of using payment links to collect money :

Multiple payment methods that are convenient to use

There are multiple payment methods and currencies that customers can choose from when using a payment link. Customers who have already submitted payment information to you will find the page pre-populated with their billing and shipping information; all customers have to do now is click “Pay Now.” Even better, the payment page it directs to is mobile-friendly, making it simple to navigate even on a phone. (Including an eWallet payment option speeds up the process even further.)

Processing time is reduced

For the business, the benefit of payment links is that they no longer need to meet with consumers for payment or wait for a bank transfer, especially for small amounts. They can simply generate a link that is customized with the information of the purchased things and the requested amount, and clients can complete the payment at their leisure. The funds are automatically transferred to the merchants after a successful payment, reducing the inconvenience and eliminating the need for cash.  

Lowered overhead costs

Furthermore, receiving payments through a link eliminates the need for any payment devices such as POS terminals or other third-party applications, reducing setup and maintenance costs. Several apps offer a “pay as you go” model, in which merchants pay a per-transaction cost based on usage rather than registration or monthly price. This lowers the hurdle during initiation, especially for small businesses or those who only accept card payments for a small portion of their sales. 

Improved customer service

Payment links can be shared on any social media or messaging site, allowing businesses to personalize the transaction by including a message thanking customers or promoting other products. Furthermore, payment links give clients the freedom of choosing from multiple payment methods and paying with their preferred method. As a result, it enhances the overall shopping experience and can be used to cultivate a loyal consumer base. 

It's easier to collect payments

You can build a payment link and customize the checkout page with your own branding with minimal IT work. If more payments are made by credit card, it may ease the pressure on your finance or accounting staff and save them time processing checks. 

You can collect payments more quickly

Including a “Pay Now” button on an electronic invoice encourages customers to pay right away, rather than waiting for a physical check to arrive. Paying with a credit card not only expedites the payment procedure, but it also informs you instantly if the funds are available. If not, you can display an error message instructing the customer to try another card, which will immediately resolve the problem. 

Works on an international scale

It can be used to receive or send money in any currency. Whether it’s for a friend or to pay for a service, the person who receives the payment has the option to accept it and convert it, not to change it to another currency, or to refuse it. 

Conclusion

Many people talk about not having enough time in their daily lives. Transferring funds and paying in cash has become a time-consuming process. Streamlining this process by using Payment links, can provide a number of merchant benefits when used. 

 

With the passage of time, society’s pace has progressively developed, responding to new demands that have surfaced. The electronic market is one area where these shifts are becoming more visible. We have only now recognized the significance of online payment. 

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