We are all aware of how “money makes the world go round”. At least in business terms. The simple rule of supply and demand has one ultimate goal, and that is profit. However, to gain profit you have to actually get paid first; and here is where everything gets a bit complicated. Collecting payments is every small business owner’s nightmare. Because everyone wants to buy with credit, but paying when that credit expires paying up seems to be hard to do! In this post, we’ll explore 11 benefits of online payments for your business.
Why you should accept online payments
You know the drill. Sending out the invoice, with your payment terms, to the customer (printed, or better yet, via email) and wait for them to notify you of their payment. Except that notification never comes and you end up literally chasing them around to pay you. A process that comes down to cost your business a quite measurable amount of money. Money on telephone bills, money on gas while you attempt for the fifth time to visit the customer’s company to shame them into paying you (ok, this is a bad business practice, but they started it!)… And finally, money in the sense of wasted time and efforts!
You realize how all of this can interfere with your daily operations, disrupt your cash flow and consume valuable time that could be better spent on your actual business. This is where the internet can be a powerful tool. It can help improve all of the above and optimize your processes to serve you.
Among other things, the internet enables you to accept payments online for your sales securely, fast and easily! The benefits of online payments for your business are hard to ignore. The benefits of online payments for customers are great too. So in the end, everyone is happy!
In a previous article, we discussed the basics of online payments and why your company will likely benefit from providing that option to your customers. In this one, we are going to list the benefits of accepting online payments for your small business. This article concerns businesses that run mainly online like e-shops, subscription websites, and companies that use cloud invoicing applications, like Elorus, to bill their clients.
So, let's get right to the advantages of online payments.
The advantages of accepting online payments in your business
#1 Easy to set up
The first benefit of online payment systems is that they are easy to incorporate into your business software and workflow. The integration process is more or less the same for every online payment provider and requires your company to register for an account. The registration process is quick, without a ton of required paperwork. You can start accepting payments online within a few minutes!
#2 Affordable for every business
Most providers have zero setup fees and, compared to e-banking systems, they offer lower transaction fees. Some online payment gateways also have a minimum amount per year that is transaction fee-free! Above a certain amount of payments, online payment providers often give a discount. Therefore, your cost remains low even when business is going well!
#3 Quality customer experience
As mentioned above, the benefits of online payments for your business extend to your clients too. They will immediately appreciate you having an online payments option to finish their purchase online. This is also true if you’re a freelancer offering some sort of services to companies. In both cases, giving your clients the ability to pay you with their credit or debit card online is a huge advantage. Imagine making them do all the work themselves via the banking system, or worse, in person with cash. In a completely secure and easy to navigate environment, your customers can pay off outstanding invoices. Easy peasy!
#4 Secured payments
It’s a bit counterintuitive but, one of the most important benefits of online payments for your business is that your and your clients’ money are safe. Online payment gateways are obliged to apply multiple security layers for transactions so that the clients’ card details are not stolen from scammers. Respectively, your money is transferred to your account safely. You also get notified for payments automatically via email, so you can do your cross-checking.
#5 Quick transactions clearing
Security is obviously quite important, but getting your money on time is crucial to your cash flow! Online payments are usually cleared in one or two working days, depending on the traffic. Τhis way you are able to have a better estimation of your liquidity and accurately plan your next moves.
#6 Manage subscriptions
Put the hassle of payment reminders behind you and let the online payments system do the work for you. Online payment gateways offer a recurring billing option, which automates the whole process for collecting subscriptions on time. This feature doesn’t require any action on the client’s part.
#7 Gain impulse buyers
Among the benefits of the online payment system for e-shops is that buyers are more likely to purchase if the payment process is instant. Accepting credit cards is important to increase your revenues while not having to deal with the actual billing process yourself.
#8 No banking account needed
One of the most important benefits of accepting payments online is that it doesn’t require your company to have a bank account for those transactions. Receiving payments outside the traditional banking system has plenty of advantages, first being avoiding filling out needless paperwork. In countries with capital controls in place, businesses gain a competitive advantage while their sales operations remain intact regardless of the capital restrictions.
#9 Mobile payments
Online payments can be carried through mobile devices just as easily and from anywhere, as long as there is an active internet connection. Buyers increasingly use their phones to purchase items online and the process needs to be as simple as possible. Online payments providers offer intuitive interfaces that enhance the customer experience even more! Probably, modern, user-friendly payment gateways are the reasons that there are so many advantages of online payment!
#10 Buyers are accustomed to paying online
It has been a long and slow process for customers to realize that the internet, and especially submitting their card details online, is safe after all (well, most of the time). Actually, your credibility as a merchant can be questioned if you lack this payment option. Especially if you run your business online. Be smart and integrate an online payment system for your reputation’s sake!
#11 Tailor the payment to your workflow
Online payment providers offer customizable APIs and even plug-ins with popular third-party applications (for example, WooCommerce). This enables you to customize the billing process to your needs and create an online payment system that streamlines operations to your advantage.
The benefits of accepting payments online are numerous for your business, no matter its size and industry. The importance of online payment systems is undisputable since your business will not likely survive without accepting payments online. In fact, you simply cannot consider your business modern and up to date if you don’t include online payments as an option. Remember, you can always have more than one online payment gateways, so your customers can choose their preferred one and pay your from their personal account easily and without a credit/debit card!