The thing about customer needs and preferences is that they change and evolve with times. Meeting their demands is in every company’s best interest, not only to stay afloat but also to widen their audiences. As our world becomes increasingly connected, it has become possible for businesses to gain customers all around the globe.
And because the customers and revenue nowadays can come from virtually everywhere, it is necessary to consider different payment options. If you are a business owner who is looking to expand their customer base, here are four types of payment methods your business should offer now in order to keep up.
Bank transfers
This is a predominant payment method among B2B businesses, and it is quite popular in places like Western Europe. In fact, bank transfers account for over 50% of online transactions in countries like the Netherlands. Bank transfer platforms allow for faster payments while preventing credit card chargebacks.
The way it works is it allows the consumer to transfer money from their bank account to the business’ bank account. Although it is considered to be somewhat old-fashioned, the fact that there are no transaction fees (except when it comes to large payments) along with low failure rates make this payment method quite an attractive option. That said, bank transfers, just like other payment methods, also have their limitations. These include time-intensive manual intervention, lack of payer protection, and push payments limitations. In case of missed payments, businesses have to contact the customers directly, which could reflect negatively on their overall experience.
Electronic checks
Paper checks are currently one of the most popular non-cash payments in the U.S. these days. While they are still required for some transactions, processing them is very time-consuming and may take up to several days. That is when electronic or digital checks come into play.
These computer-generated checks are processed like paper checks, and allow for fast and remote transactions. They are similar in concept to EFT (electronic funds transfer), and are processed over the ACH (Automated Clearing House) network. Choosing to issue checks eliminates the need for any manual processing, which saves both time and money. This payment method is particularly practical for small and frequent payments and can be very cost-effective – as long as there is trust between the payee and the payer.
eWallet
Another effective way to send and receive electronic payments through electronic gadgets, eWallet has been steadily gaining in popularity. The main reason for their popularity is the fact that it allows for secure and immediate payments.
This quick mode of transaction relies on either cell phone, online banking, ATM, or banking app to complete the process. You can access this prepaid account using your smartphone or computer and complete the transactions without leaving your home. Once the transaction has been performed, the recipient receives an SMS notifying them that they’ve received money in their eWallet. That said, not all digital wallets are created the same. What this means for businesses is that they have to be careful with the types of eWallets they offer.
Debit and credit card payment
Being able to pay using their debit and credit cards is something most customers have come to expect from businesses. Now, whether they’re the right option or not for your business will depend on a wide range of factors. Choosing to accept card payments can eliminate the risk of dealing with bad or bounced checks. It also legitimizes business, boosts sales, and improves cash flow. That said, this payment option also comes with costs and fees, as well as disputes, frauds, and identity theft.
It is up to businesses to access those advantages and disadvantages and choose whether to offer them as an option. If they choose so, it’s important that they make sure they’re able to accept the transactions in the regions where they’re doing business. Having a partner with local presence in those regions is their safest bet, since many credit cards can only be used for domestic purchases.
Wrapping up
There’s no doubt that new payment methods have their own unique benefits and advantages. Still, it’s important to offer both traditional and innovative payment options to your customers. For starters, it helps increase transaction opportunities which, in turn, results in increased revenue.
Offering multiple payment methods also makes the buying experience easier, which leads to greater customer loyalty. Finally, offering different payment options helps ensure a good customer experience while also boosting your bottom line.
Eve Anderson is a marketing specialist turned blogger. Interested in sports and exciting travel destinations. Love to share content that can inform people.
