Every year, there are a growing number of digital payment methods available to consumers. Each method has its own set of benefits, so it can be tough to decide which one is right for you. For businesses, it’s hard to accommodate consumers and decrease customer attrition with so many options. Today, we will explore the different types of digital payment methods and their benefits so that you can make a more informed decision.
Credit and Debit Cards
By far, the most popular digital payment method is credit cards. Credit cards offer a wide range of benefits, including the ability to build credit, earn rewards, and enjoy fraud protection. For businesses, credit cards offer a simple way to process payments and track spending. As a business, you can allow customers to tap their cards and enjoy a streamlined experience whether shopping online or in person.
If you haven’t seen them before, a digital wallet is a secure, online account that can be used to store, send, and receive money. The most popular digital wallets are PayPal, Apple Pay, and Google Pay. While each digital wallet has its own specific benefits, in general, they offer a convenient way to make and receive payments without having to carry around cash or a physical card.
These days, both mobile phones and smartwatches allow consumers to store their digital wallet information and use it to make contactless payments. This is extremely convenient if you’re on the go and don’t want to pull out your wallet/purse. Let’s say that it’s late at night – you can tap your watch rather than getting your purse out of a bag.
Peer-to-peer (P2P) payments are becoming increasingly popular, especially amongst younger generations. This is where two individuals can transfer money to each other without going through a financial institution, something that older generations would have loved many years ago. For this to work, both parties need to have a certain account and be connected to the same network; once this is done, funds are then transferred instantaneously.
EFTPOS Systems and Terminals
As time goes on, both businesses and customers are benefiting more from electronic funds transfer at the point of sale (EFTPOS). This is because it provides a fast and convenient way to make transactions without the need for cash. In addition, it also eliminates the risk of carrying large amounts of cash around.
In short, EFTPOS systems and terminals have made it easier and safer for both businesses and customers to make transactions. Not only do they process payments, but the business can access inventory management, sales tracking, and more through the integrated POS system. Suddenly, you know exactly what you need to order next week because of the inventory management feature. So long as businesses partner with a reliable EFTPOS machine merchant, it will instantly make life easier.
While EFTPOS terminals are here to stay, a trend much like smartwatch payments has been on the rise in recent years – QR code payments. For those who are not familiar with QR codes, they are two-dimensional barcodes that can be read by a QR scanner or smartphone.
When it comes to payments, all the customer needs to do is open up their QR code scanning app, scan the code, and voila – the payment will go through. This is a fantastic way for businesses to streamline their payments, as well as make things more convenient for their customers.
If businesses can accommodate customers and offer various payment methods, they will reap the benefits (in security and convenience just as much as customer happiness!).