The world is constantly undergoing changes as new technology emerges.
There have been more advancements in the past 100 years than in the last thousand. However, it’s normal to see something that was once interesting and new to be outdated and passe within just a few years. This is true for all circumstances, cash payments included. Ultimately, the goal is to ensure convenience and efficiency for everyone. Businesses have adapted their plans and strategies to maintain their relevance to their customers. Consumer trends have evolved to reflect these changes. Take digital payment services, for example. We’ve moved from cash transactions to using credit cards, and now we have a myriad of digital payment methods we can use for just about anything. Although there are many factors at play, it’s important for business owners to consider the advantages and disadvantages of online payment methods. But what are digital payments, and will it benefit your business? Let’s find out.
What Is Digital Payment?
To simply state, online payments are transactions made via digital, mobile, or online modes. Meaning there is no physical exchange of money involved in the process. This process is pretty simple: money from a buyer’s bank account (or a financial wallet) sends money to another bank account or financial wallet through a service or medium of transmission. Meanwhile, some of the most common digital payment services available for businesses include Paypal, Google Pay, Apple Pay, Direct Debit Payments, Bank Transfers, and Prepaid Cards. One factor that has drastically affected the online payment world is Covid-19. Limiting social contact has encouraged customers to opt for shopping online which has significantly increased the use of digital payment.
Over 136 million new digital accounts were created in 2020, with transactions going over $767 billion for the whole year. This equates to over $2 billion being processed daily.
Last year alone, digital payment services saw a tremendous increase in users and the amount of money being moved. Purchasing or selling products and services without using physical money is a step forward towards a better world, right? Well, yes and no, it solely depends on the nature of your business as well as other factors. Here are some of the advantages and disadvantages you should consider before your business decides on accepting and utilizing digital payments.
Advantages Of Using Digital Payments Methods
1. Offering digital payment options ensures you can provide an easy, quick, and seamless payment method for your customers. Sending and receiving payments only requires a few seconds.
2. When you receive digital payments, higher payment security is to be expected with encryption, SSL, and tokenization. Receiving fake money or cheques will no longer be a concern. Your customers will also feel more secure, especially when they take advantage of the One Time Password options.
3. With more and more people using online banking and financial wallet options, you offer convenience to most of your customers when you start accepting digital payments.
4. As a business, keeping track of your business’s revenue is essential. After all, that’s the only way to calculate whether you are making a profit or barely breaking even. Most digital payment platforms keep a record of every transaction made between you and your customers. You can check or even print out these records to review at any time.
Disadvantages Of Using Digital Payment Methods
1. Because you are using a 3rd-party service to accept digital payments, expect to pay additional fees such as service fees, and processing charges. This may eat into a part of your profit margin without careful planning.
2. Most digital payment methods are hosted online. This means that if your Internet is not functional, you can’t accept payments from your customers.
3. Depending on the digital payment platform you use, you may encounter errors resulting in downtime. More downtime ultimately means fewer earnings.
4. Along with other forms of online technology, you may be susceptible to cybercriminals. Without proper security, this will leave your business vulnerable to fraud and theft.
Consult With Blitz Payment Solutions
It’s easy to get excited about embracing technological improvements, especially when you are a business that wants to ensure your customers get the best service possible at all times. Digital payment services are not created equally. Navigating through this technology, their policies and fees may overwhelm a business owner. Blitz Payment Solutions specializes in providing digital payment solutions for businesses located in Canada. With years of experience in the field of digital payments and a team of experts in the payments industry, you can rest assured that you will get nothing but the best from Blitz Payment Solutions. Contact us today and ask about how we can help take your business to the next level with the help of digital payment services.
