A frequent question clients ask after being told the total amount for their purchase is, “Can I pay using an online method?”
As a result of the COVID-19 lockdown, many individuals have turned to running businesses online. The mode of payment carried out by the people in the COVID period is online transactions. These online transactions are the electronic payments. Electronic transactions are a reliable and efficient way to make payments instantly. The electronic payments are also called cashless payments, e-payments, digital payments, etc.
As electronic payments have become a trend now, the business cash flow gets improved. The electronic payments have multiple benefits. If you have no idea about electronic payments and how they boost your business efficiency, then this blog is for you.
This blog suggests some tips and ideas for boosting business efficiency with electronic payments.
What are Electronic Payments?
Electronic payments, also known as digital payments or cashless payments, allow transactions to be processed without the need for physical cash exchange. Mostly these payments are transacted through mobile apps, credit or debit cards, net banking transfers, digital wallets, etc. Let’s see one by one in detail.
-
Mobile Payment Apps:
The primary use of mobile payment apps is making money transactions. Instant payment can be made using these mobile payment apps. But for making transactions through mobile, a strong internet connection is needed. Some of the mobile payment apps include,
- Google Pay
- Phone Pe
- PayPal
- Paytm
- Samsung Pay, etc.
This mobile app often saves our essential data needed for transactions.
Using these payment apps, the transaction can be done using the scanning of the QR code as well as transferring money to the particular number.
-
Bank Transfer:
The bank transfer is the process of transacting money through a bank. These bank transactions are usually done from one bank account to another bank account with certain limitations. The process is a bank transfer, as it is a lengthy process. First, visit the bank in person to deposit the amount into your account, then transfer it to the intended account. This transaction process requires significant time and energy.
-
Credit Card Payment:
Credit card payment is the base of the modern electronic payment system. These credit card payments are most trusted by the businesses. It ensures a safe payment method.
-
Debit Card Payments:
Debit card transactions enable wireless payments through a card that is directly linked to a bank account. The primary need for a debit card is having a personal bank account. The step involved in the debit card payment is that you must swipe the card and enter the personal identification number to proceed with the payment.
-
Buy Now, Pay Later:
As mentioned in the name, the Buy Now, Pay Later (BNPL) option is a method of transaction where the product will be purchased first and the payment will be done later. Interest-free options are applicable for this service if the payment is made on time.
Benefits of Choosing Electronic Payments Over Cash Transactions:
As electronic payments are thriving in today’s world, they have several advantages.
Convenient to Use:
The electronic payment methods are convenient to use from any geographical location and at any time. All you need is a valid internet connection. The steps followed in these electronic payments are easy and convenient to use. A straightforward process is used in these payment methods, and a wide range of payment methods are available.
Security Measures:
The electronic payment methods have several security features. The money in the electronic payments will not be stolen manually by anyone. When money is dealt with in physical form, there is always a chance of it being lost or stolen. But while using electronic payment, there are no such threats, and your money will be on a safer side.
Time Saving Features:
While making a physical payment, the time taken for making the payment may be high. And in some crowded places, the time taken to complete the billing process will be long while dealing with the physical cash. The owner must count the cash manually; they should provide the balance amount if necessary, and this is a long process that requires much time.
But making electronic payments can make this process exact, as the amount can be transacted at an instant.
Attraction of Clients:
In this technological world, many online businesses are going on. The owner will operate from a single location, with clients spanning across the globe. Electronic payments are the preferred choice for international clients since manual transactions are not viable. So, including the electronic payment options in the invoices can attract a large number of clients and help in the enhancement of the business.
Adding the electronic payment method to digital invoices is being done using the invoicing software for small businesses. Using this invoicing software, you can make errorless invoices as well as get multiple options for adding the electronic payment methods.
Rewards for the Transactions:
While transactions are done electronically using mobile apps, rewards and coupons will be provided for your number. This reward has many flat discount offers and purchasing offers in it.
Maintaining Accurate Records:
Transaction details conducted online are regularly recorded in the system, serving as legal proof in case of disputes. But, in physical transactions, no evidence will be saved as proof, which may lead to any fraudulent activities.
Challenges in Doing Electronic Payments:
- Processing Costs: Some electronic payment methods charge extra processing costs for the transaction made.
- Technical Problems in Servers: While using electronic payment methods, the internet connection is essential. Sometimes the server will be down, and the clients may not be able to proceed with the payment.
- Client Preference: Even though many people opt for electronic payments, some of them still choose to make manual cash transactions.
- Fraudulent Activities: Some clients may get fooled by the fraudulent activities and may lose money.
Electronic payments have become a crucial part of the business nowadays. To enhance your business, start offering electronic payment in your invoices, attract more clients, and attain success in your business.
