What are the benefits of online payment?

What are the benefits of online payment?

One of the primary goals of a business is that they have to collect a payment, because, after all, that’s how they stay in business and keep the money rolling in. However, that is also the most challenging aspect of running a business. Research showed that around 56% of American patients delay in paying for medical assistance or avoiding the payment altogether. In 2016, around 70% of the hospital patients had invoices of $500 or less that weren’t paid. Hence, what a business can do is make the payment process much easier for them by providing online payment methods. As long as consumers see any value in online payment, the business will also benefit from it.   

Benefits of online payment

The benefits of online payment for businesses and entrepreneurs are numerous. Let’s explore what perks they get to enjoy by accepting online payment.

  • Recurring payment. Some services that consumers apply for require payment at regular intervals. The online payment method has been most beneficial in such cases. Before online payment, such services as subscription was possible with cash or check, but nowadays, consumers would prefer the convenience of online payment. For instance, consumers who have subscribed to Xfinity internet deals have the option to share their required bank information with the company so that they can be billed every month on subscription charges.

What does a business benefit from this? Sales Increase.

  • Global Audience. The most appealing thing about online payment is that businesses can open their store to everyone in the world. Their offer to accept online payment is not only open to the locals, but it is also possible for consumers from another side of the ocean to buy their goods and services.

Cross-Border E-Commerce Shopper Survey was conducted by International Post Corporation, and the result showed that 32% of the consumers bought from online retailers in other countries in 2020, and 51% stated that they plan to do more cross-border shopping in the future. This is advantageous for businesses and they can activate online payment to expand their sales to global audiences.

What does a business benefit from this? Increase in sales.

  • Reduced Cost. In a traditional payment setup, the consumer visits a store pays there with cash or mails a check. As compared to that, online payment is done in a much more automated setting, which leads to reduced cost. There is often no upfront cost in setting up payment systems, and only low transaction fees are required whenever a sale is recorded.

Moreover, since the system of online payment is automatic, they have a low labor cost as compared to manual payment methods.

What does a business benefit from this? Affordability.

  • Payment Security. Online payment comes with increased payment security and lowers financial risk for the business. For instance, in the traditional payment method, the retailer will need to verify the integrity of cash or deal with the fees from a bounced check. But considering the pace as to how online payment is processed requiring fewer transaction times, the money is instantly transferred to the retailers’ account without any of the hurdles.

Also, payment being transferred online is more tightly regulated, which means that the retailer can keep track of the history of payment more conveniently.

What does a business benefit from this? Operational performance.

  • Optimized Customer Experience. Browsing products online with a convenient payment method is the reason why consumers prefer online shopping, and the business has to cater to this preference by making it possible. Without it, consumers would no longer receive instant gratification from their purchases, which is why they were doing online shopping in the first place.

What does a business benefit from this? Enhanced user experience leading to the sales increase

  • More Distribution Channels. If a business is able to provide an option for accepting online payments, they can branch out their sales and have other websites showcase their products and services with the options available for online payment. Research has shown that businesses who sell their products through affiliation can generate up to a 28% increase in online sales.

What does a business benefit from this? Sales Increase.

  • Impulse Buyers. Having an option to shop and make purchases at any time of the day, and on any day of the week, from anywhere in the world is appealing for impulse buyers. Products can be reserved and bought on spot, and if businesses do not have an option for online payment, then it would be a shame if buyers’ needs for the products are not facilitated directly.

What does a business benefit from this? Sales Increase.

Encouraging the most convenient ways for consumers to pay for goods and services will help keep the business running. By implanting these electronic methods, the business can save time and money for themselves, and not deal with hefty checks or bank restrictions.