Operating a business requires constant innovations and adaptiveness. Needless to say, business strategies aren’t a one-time thing. For now, your gimmick and marketing efforts may be working like wonders, but what about tomorrow? A business should continue to keep up with the changes in the environment, culture, and social demands. Businesses should sustain flexibility in all aspects, including their payment methods.
Different individuals have different tastes, and the same thing applies when they decide to pay for their purchases. While some people still see cash as king, some actually can’t live without their credit cards. And now, cashless methods are becoming commonplace too.
With that said, in this post, you’ll learn different payment methods and see if they’re suitable for your business.
Before cash was introduced, people bartered goods like gold or other precious metals. Although they’re no longer used as legal tender these days, gold still remains one of the most valuable assets, according to Oxford Gold. Fast forward to today, bills and coins are now used to pay for goods and services.
And since their inception, they’ve become the most common form of barter and exchange for goods and services. However, over the past several years, digital payment options have steadily grown in popularity.
The ultimate advantage for cash that no other payment methods can compare to is that there are no fees and bank charges. Your business can directly receive cash payments from your customers. The fees charged by credit card companies can be high for small businesses with thin profit margins.
Many small businesses benefit from operating a cash-only enterprise. However, keep note that payments limited to cash have their disadvantages. An all-cash business may put you at risk for theft or receiving counterfeit bills. Not to mention, you’d lose business from clients who prefer to pay in other forms.
- Credit Cards
Next to cash, credit card payments are the most common in the world. There are many advantages and reasons this payment method should be applied to your business, including these examples:
- Helps boost sales for your company
- Eliminates the risks of receiving counterfeit bills and bouncing checks
- Improves your cash flow
- Establishes your competitiveness with other stores and businesses.
- Provides convenient transactions for expensive or high-priced purchases.
One disadvantage of accepting credit card payments is that it often comes at a cost. Companies that offer credit cards charge transaction fees, flat fees, and incidental fees. So before you apply this payment method in your business, know the terms credit card companies usually offer.
In recent years, clients have started to expect that your business accepts some form of credit card, so you may find yourself at a disadvantage if you don’t follow suit. Although some fees are incurred, their benefits still outweigh their disadvantages, making it an ideal payment method to your clients in the modern day.
- Mobile Payments
With the advent of technology and increasing internet speeds, people now have started using mobile payments for their online transactions. Whether you bought something online or are shopping in a brick-and-mortar store, you can pay up through a few clicks on your smartphone. Many e-commerce sites are now shifting to progressive web apps since people are always mobile and moving from place to place.
Mobile payments are facilitated by involving a form of payment like a card or electronic money transfer. You’ll only need a good internet connection and your payment application, and finally, you can pay virtually. There are a lot of online payment platforms that are easy and accessible to use these days like PayPal or Payoneer.
- Electronic Bank Transfers
Electronic payments are made online. Their payment gateway supports different modes of payment like an electronic check, bank balance, virtual money, and so on. Online businesses aren’t the only ones that accept online payments. It’s not uncommon to walk through a physical store and discover that you can deposit some cash right into their bank account. With many bank systems shifting to digital banking, you can download their application and do all your transactions virtually.
Whether you need to deposit, transfer, or withdraw money, online banks can make them all possible. The future of payments seems to lie in online payments because of their convenience and low cost. They give consumers more options when they check out, and they offer a cheaper and faster way to get paid.
What sets it apart from cash or credit card is its automation feature. Most of the time, when you transact through electronic payments, the AI computes your taxes and gives you a breakdown of how much you’ll be charged. Of course, online payments will require fees, but these fees are usually less than what credit card companies charge.
Your business can accept different payment options mentioned in this post. However, every method has its perks and strengths, and it’s great for your business to offer diverse payment options as your customers will have different preferences. Remember that the end goal is to grab any business opportunity by taking advantage of the many payment methods available today.