BluePay is pleased to bring you this valuable information from our partner, Due, makers of a free digital wallet that allows users to easily make and accept payments online.
Payment options used to be pretty simple. You paid cash or wrote a check. Then, there was the rise of plastic in the form of credit cards, followed by the debit card.
Now, you can add other types of payments to that list, including digital wallet, cryptocurrency, eChecks/ACH, wire transfer and peer-to-peer payments via text or email. It’s an amazing array of payment options that consumers and businesses have been adopting at incredible rates of speed -- depending on demographics, where they are in the world, and comfort levels.
As a business owner, you will have increasing choices to make on what type of payment methods to accept. While you may veer toward merely offering those payment methods with which you are familiar, you may want to expand your options for these five very compelling reasons:
Retain Existing CustomersWhile your existing customers may have always used their go-to payment method, it doesn’t mean that they will continue to choose that same one. There may be changes in payment method preference because they are altering their financial habits or certain situations in their life have now called for the use of some other payment method. Or, they may have educated themselves about the new payment options and found they like another method more than what they were previously used to. Even if these customers have bought from you for years, if you don’t offer the new payment they want to use, they will go elsewhere for the same products. It’s a good idea to survey your existing customers on their payment preferences to assess where they are at in their thinking so you can adjust your payment options accordingly.
Attract New CustomersYour new customer base may consist of millennials who like to use digital wallets as well as older customers that like the idea of direct debits or e-checks. A great way to attract these new customers is to use your payment options within your marketing messages that illustrate that you know what you are doing and that you stay up with the newest and best technology. Each different payment method is bound to appeal to the entire range of customer preferences for payments. It provides the leverage to win over more people and increase sales through this aspect of the ideal customer experience. You will also be able to reach customers in other countries because some of the additional payment options you add can handle multiple currencies and align with the payment standards in other locales.
Increase per sale size and frequency:Those retailers that offer a multitude of payment options have seen their per sale size grow as more consumers and businesses will purchase more if certain payment methods are accepted, such as credit cards. There is the incentive to purchase more with the ability to use any payment method a customer wants, which is exactly what you would hope your customers would do. There is also a greater likelihood that they will buy more often.
Raise cash flow:Various types of payment methods settle over the course of different time periods. If you only rely on one type of payment method like a credit card, you may not see the funds in your business account for a few days. In the meantime, taking other payment methods like cryptocurrency, direct debit, and e-cash delivers almost instantaneous receipt of funds so you can keep your cash flow topped up at all times – a key tactic to sustain your business through all cycles.
Lower overhead costs:While some payment acceptance methods come with significant fees, you can lower your overall costs by spreading out payment acceptance to include those low or free options. Over time, this diversification can reduce what you would have spent just offering one payment type. This can add up quickly as more fees are being tacked on to payment methods like credit cards, especially if you are a small business owner with lower transaction volume or you are in a high-risk industry. Your bottom line will appreciate that you are willing to make the foray into new payment methods that don’t charge the same level of fees.
Now that you have all the reasons to add more payment methods to your business, it is the time to find a payment processing partner who can deliver all the methods you have chosen. Why not reach out to our partners at BluePay to help get you started?