The digital age has brought many benefits to consumers, including the ability to buy almost anything with a swipe or tap of a card. But does cash really hold a place in today’s world?
The answer to this question depends on the consumer. Some prefer cash for its convenience, while others are concerned about security breaches.
Benefits of Electronic Payments
While some people may choose to make purchases with cash, many more prefer to use an electronic payment method such as a credit or debit card or mobile wallet. They are often faster, easier to manage, and can be processed digitally rather than manually.
Customers can also enjoy the convenience of not having to carry large amounts of cash with them when shopping, thereby making them feel safer. Plus, they can save time at the checkout counter as well as eliminate the need for paper receipts.
Businesses that embrace electronic payments enjoy a range of benefits, including higher revenue, more efficient operations and streamlined accounting procedures. For example, ePayment methods allow for faster and more accurate processing of invoices by eliminating the need to send paper checks. This also saves on labor, paper, and printing costs for your account payable department. Moreover, incorporating electronic payment methods into your business’s account payable process can help your AP team realize substantial savings on every invoice.
Convenience
Customers are often attracted to a business that makes the process of doing business with them as easy and painless as possible. This concept is referred to as customer convenience and is the key driver of customer loyalty.
Convenience has become an important factor in most purchases, with more than 100% of shoppers saying they value it. As a result, businesses should strive to establish it as much as possible throughout the customer experience.
E-payments allow customers to pay for products and services without having to wait in line or write a check. They also eliminate the need for a cash drawer, which can be a security risk for both the merchant and the customer.
Creating customer convenience is a vital part of any business, especially online retailers. It can be used to increase customer loyalty and improve customer retention rates, ultimately building a business with a high Customer Lifetime Value.
Security
When you are paying for something, you want to be able to trust the security of your transaction. This is why many consumers choose to use credit cards and e-payment systems when shopping online.
Electronic payment methods come with high security protocols, such as two-factor authentication, PINs and OTPs. These protect your funds from theft or fraudulent activities.
Another benefit of electronic payments is that they are easier to use than cash. This means your customers will be more likely to shop at your business.
While cash may be more convenient, it can also pose a threat to your business. This is why you should always practice good cash hygiene and be careful with your money.
Time
One of the most obvious benefits of electronic payments is that they can free up a lot of time for business owners. According to Visa, small businesses spend almost three times as many hours processing non-digital payments as they do with digital ones, putting a dent in their day-to-day operations.
In addition to the aforementioned time-saving capabilities, a good electronic payment solution will also provide you with a more secure way to store customer data. The best way to achieve this is to encrypt customer data using a secure, cloud-based payment gateway. This will ensure that only authorized individuals have access to the information stored on their credit cards. This will not only improve security, but it will also make it easier for businesses to comply with regulations. This is especially helpful if you’re selling online and need to protect your customers from fraudulent activities such as stolen card details. It’s important to note that the best way to implement a secure payment system will be based on your specific business needs and your budget.