Today, there are many new payment methods available for entrepreneurs and small business owners to facilitate their range of consumers. These online-based financial systems can be the difference between your business showing increased value and profitability and a decline. Which would you choose?
If you aren’t yet familiar with digital wallets and the latest mobile payment technologies, you might be interested in the benefits they afford small businesses, such as:
- instant access to funds and real-time financial data
- cost savings on third party transaction fees and POS systems
- competitive edge—making it easy for customers to pay quickly and securely on any device.
Here’s a quick look at a few emerging payment options you may want to consider integrating with your business in 2020.
Apple Pay
Apple Pay has become an appealing option for consumers and business owners alike due to its ease of use, speed, and security. Anyone with a smartphone or Apple watch can make a purchase instantly by simply holding their device at a wireless payment terminal set up for Apple Pay.
Apple Pay can also be used to make secure purchases within apps or on the web.
Undoubtedly, in this fast-paced world, the faster your service, the happier everyone will be. Your patrons won’t have to wait, and you’ll make more sales.This is especially true if you run a business where completing transactions quickly is crucial—for instance, a coffee shop or fast food outlet.
If your business already accepts major credit cards (e.g. Visa, Mastercard, American Express, or Discover), or Interac contactless payments, you should be able to set up Apple Pay without making any changes.
Apple also doesn’t charge additional fees for businesses who accept Apple Pay. This makes it a great option for small businesses and startups.
Apple Pay has been growing in popularity since its launch in 2014 and is currently used around the world (the full list is available here). For more info to get you started, visit the Apple Pay website.
Cryptocurrencies
If cryptocurrencies have not been on your radar, it’s time to pay attention. These alternate currencies, such as Bitcoin, are quickly becoming mainstream payment options for small and large businesses alike.
Large companies including Microsoft, Tesla, and Shopify now accept Bitcoin. Businesses that trade in large sums are able to benefit from:
- no transaction fees
- instant payments
- no exchange rates or conversion fees
- encryption technology (e.g. blockchain) ensures secure transactions
The ease and affordability of using Bitcoin for global business transactions is a major reason small business owners looking to expand into foreign markets adopt this cryptocurrency.
Of course, any new financial technology comes with its risks. Some worry about cryptocurrency’s potential volatility, and the risk of loss in an unregulated system.
The best advice before investing in any cryptocurrency is to make sure you understand exactly how it works—then weigh all the pros and cons for your business.
To learn more, take a look at this list of cryptocurrencies to watch in 2020.
Next steps
As digital technologies bring us closer to paperless financial systems, it’s important you offer your customers a range of convenient payment options, so they aren’t tempted to shop somewhere else. These options are just the tip of the iceberg, as there are so many other options out there, apart from physical bank accounts. The trick is finding the one(s) that are highly used by your target audience.
Ensuring your customers can buy from you using their preferred payment options, whether cash, check, debit card, credit card, mobile payment options, or EFT, will help you stay competitive, long-term.
Let us know what payment methods you prefer and why.
If you need any assistance with keeping your books up-to-date, especially as we get closer to end-of-year, feel free to connect with us.