The days of people carrying around cash are ending. Did you know that only 16 percent of consumers say they always carry cash these days?
COVID-19 definitely played a role in people not wanting to handle the same money (or any object, for that matter). However, even prior to the pandemic, the advances in payment technology were already pushing consumers and businesses toward digital payments.
Today, we have credit cards, debit cards, bank drafts (also known as Automated Clearing House or ACH), mobile wallets, and even more ways to pay without having to rummage around for exact change or fear the dreaded bounced check. Here are five reasons why small businesses and solo service providers should offer digital payments to their customers:
1. Happier Customers
Nearly half of consumers say they will not even do business with you if you do not offer multiple ways for them to pay. If you can keep their credit card on file or have a secure entry form, they will pay you from the palm of their hand — through their smartphone
2. Time Savings
Small business owners typically spend more than five hours a week handling payments. If you collect cash and checks, chances are you are running to the bank regularly. When you allow your customers to pay digitally with their credit card or through ACH, the money deposits right into your account, and you do not have to wait in line at the bank.
3. Money Savings
Yes, it is true that most digital payments have a processing fee attached, but it’s typically around one to three percent of the payment. However, consider even that one time your customer bounced a check on you ― which then dominoed into your checks bouncing. This is never pleasant. You will end up saving time, money and embarrassment when you accept ACH bank drafts with a payment processor that provides real-time funds availability service.
4. More Convenience
Anything digital is typically more convenient, but by synchronizing your payment processing with your customer relationship management (CRM) tool, you can schedule recurring payments for ongoing customers. This is ideal, for instance, when you provide a monthly service, such as housekeeping, lawn service, or membership plans.
5. Streamlined Workflows
Going digital is not just about accepting payments. You can digitize the entire process, from estimate to invoice to payment received. When you have a fully integrated business software platform, you can do all of that and more from one dashboard. You can build estimates and invoices in minutes, deliver them via SMS text messages, and let your customer click a few buttons to pay you — safer and faster.
Another benefit with digital payments is that everything is recorded and documented, so you will be able to backtrack any issues or lost payments. In addition, both you and your customers will love the all-new quick and contactless experiences that help you build a more modern business.
