The Latest Innovations in Payment Processing for Business Growth
Payment process services are now commonplace throughout the business community. Thanks to modern technology, many of these are associated with the digital domain. What advantages can online payment processing offer? Are there any notable trends to highlight? What metrics need to be taken into account when choosing the most appropriate solution? In this article we will examine these and similar questions to appreciate where the industry is ultimately headed. Additionally, if you want to learn even more about payment processing click here.
Why Payment Processing is Crucial For Your Business Growth?
The ability to accept online payments is crucial for any enterprise that wants to enjoy success. There are several main reasons why these types of transactions have become so pivotal. Firstly, they provide customers with a secure means to perform a digital transaction. This helps to ensure a sale and ultimately, an appreciable return on investment (ROI).
Furthermore, high-quality payment processors will reflect your business in a more positive light. Site visitors can therefore remain confident that they are in good hands throughout the entire conversion process. On a final note, digital payment processing offers a host of redundant security protocols. Important information can therefore remain safe at all times.
The Evolution of Payment Processing
Most experts will argue that the notion of payment processing emerged when the first coins were minted (approximately 700 BCE). Since then, the industry has evolved in direct relation to available technology. Cash transactions began to be replaced by credit cards during the 1980s. Digital payment processors were introduced during the latter half of the 1990s. Now, contactless payment solutions are emerging as the next leap forward. When combined with downloadable smartphone apps, the ability to purchase a product or service has never been easier.
However, it is important to remember that some businesses still cannot accept online payments. This is a real problem considering that up to 62% of all purchases are now made over the Internet. Therefore, it only stands to reason that the latest systems should be adopted sooner as opposed to later. This leads us to the next main point.
Top 5 Trends in Payments
What does the not-so-distant future have in store for online payments? We will briefly review five predominant trends which are set to dominate the entire industry.
As mentioned previously, contactless payments are becoming commonplace. Through the use of wireless RFID technology, customers can now purchase products without physically inserting a card into payment hardware. Many believe that the recent COVID-19 pandemic dramatically increased the practicality of contactless payments.
The business community has likewise begun to adopt cross-border payment options. This is particularly useful for multinational organizations or any enterprise that hopes to expand into a new marketplace. Modern systems enable users to perform instantaneous transactions. Furthermore, users are less likely to be charged hefty commissions and fees.
Peer-to-peer (P2P) payments have likewise increased in popularity. While P2P systems have existed for decades, the use of smartphones to perform these transactions has led to their rebirth. Examples of peer-to-peer payment services include Venmo, PayPal, and Square Cash. Note that many P2P services are also referred to as e-wallets.
Variable recurring payments
Variable recurring payments, or VRPs, are yet another trend worth noting. This type of processing enables businesses to settle accounts on behalf of their customers. One interesting benefit of VRPs involves efficient transaction times. This enables businesses to offer yet another payment solution; increasing the chances of a conversion.
Buy now, pay later
Finally, the notion of buy now, pay later has become somewhat commonplace in terms of processing options. Similar to a loan, this strategy involves allowing customers to settle an outstanding account in a series of smaller payments. However, no additional interest will be charged. This approach has become extremely popular within both B2B and B2C circles.
How to Find the Best Payment Processor for You?
What steps should you take to discover the most appropriate payments solution? Several questions should be addressed. First, determine the flexibility of the system. Can upgrades (or even downgrades) be performed when required? Can the software be easily integrated into your existing in-house systems? How many payment methods are supported? Does the provider offer a user-friendly interface?
Furthermore, compare and contrast different pricing plans. Many digital payments solutions will charge a monthly maintenance fee. Determine which offers the most amenable rates.
Once all of these variables have been examined, take time to appreciate the feedback of other businesses. Do they provide positive or negative reviews? Word of mouth is one of the best ways to make an informed final decision.
Adopting the most appropriate payment processing system will provide your business with the digital “clout” required to succeed. Additionally, many customers are wary of becoming involved with an enterprise that does not offer this form of cutting-edge technology. This is why several variables must be examined well in advance. There is little doubt that your organization will benefit as a result.