Carrying cash and coins has almost become obsolete thanks to the introduction of digital payments. Rather than taking out the checkbook at the grocery line, customers are turning to easier methods of payment, including cards, phones, and even watches. With this shift in payment preferences, it’s important for small businesses to keep up with the trends.
A new way to pay
From tapping your card before you pump your gas to venmoing your painter for the exterior project, digital payments have become the preferred method of payment for 41% of consumers, with the preference shift continuing to support cashless payments.
And for good reason. Not only has it simplified how consumers can pay for products or services, but for businesses, electronic payments are less costly, technicians out of the field don’t have to worry about taking cash or checks–making them less at risk for theft, and it’s more transparent for everyone involved.
If you’re a business still banking on cash or check payments, it may be time to change your tune. Studies have shown that contactless payments are the preferred method for transactions for 68% of Millennials and 71% of Gen Z, who are currently at the top of the food chain for spending rates compared to the older generations.
What’s in your digital wallet?
The preference toward spending with digital payments has changed so much in its favor that financial company McKinsey & Company has deemed the shift a “digital renaissance.”
Visa’s Head of Merchant Sales went further, identifying the seamless experience digital payments provide. “Payments are no longer about simply completing a sale. It’s about creating a simple and secure experience that reflects one’s brand across channels and provides utility to both the business and its customer.”
Customers have a plethora of options available in the form of digital payments. For mobile payment apps, there’s PayPal, Venmo, and Zelle. Digital Wallets offer services from companies like Apple Pay, Google Pay, and Samsung Pay. And if your business isn’t taking advantage of this form of payment, not only could you be losing out on easy payment collections, but you could be losing out on business.
Junk removal company owner Andy Corman said, “More than 50% of my business this year has been cashless. I can send a bill online, and I can get paid before I leave the driveway.”
Saving you time and money
There’s nothing worse than an invoice that has gone unpaid or that one client who promises payment next time. Digital payment options can be a surefire way to make sure you and your technicians get paid on time without having to turn to costly collection agencies.
Other benefits include
- Saving money by mitigating the need to process checks or carry cash
- Appealing to current customer trends
- Convenience for collecting onsite
- Cut down on clerical errors from manual payment entries
If you’re ready to go digital, keep in mind a few wish list items you want from your payment processor. Things you should consider:
Availability-Make sure you choose a system that is available where you and your customers are–especially if you have technicians going to customer homes.
Recurrence- Do you need your payment processor to have a recurring payment option? Such as a payment plan or a subscription service?
Security-You and your customers want to feel protected when it comes to personal data. Choose a payment processor that offers proper security protocol set forth by the Payment Card Industry Data Security Standard compliance. Otherwise known as the PCI DSS.
There are a few different routes you can go to start offering digital payments. It all depends on the needs of your customers and what processor works best for your business.
To go the debit or credit card route, you’ll need to equip your staff with devices that have a credit card reader that supports the EMV chip cards with contactless payment. This route works best with Apple devices.
If you want to maintain some familiarity, E-Checks through ACH processing may be a good route. This form of payment allows the customer to input their information online to pay via digitized checks.
You can also accept payment through Digital Wallets such as Google Pay or Apple Pay. At Scorpion, we make it easy to move to digital payments without having to worry about meeting security standards and setting up the process. Our Customer Platform offers a Payment Suite for clients where you can see all customer invoices, send out new ones, and receive payments right through the suite.
Digital payments are the new norm, and this is one of the rare instances where the trend benefits both the customer and the business. If you’re looking to get started with digital payments or marketing in general, Scorpion is ready with the technology and the expertise to help you hit the marketing (and payment) ground running.