A surge in the use of digital payments has been observed during the COVID-19 pandemic. As can be seen, global digitization considerably impacted financial services and paved the way for financial inclusion. The change in payment technology is transforming, and SMEs need to advance to provide a consistent experience to their consumers as well as optimize business performance. Upgradation in payment services can unlock business value and opportunities, especially for small and medium-sized enterprises.
What Is Digital Payment Technology?
The change in digital payment technology is not entirely new, financial services have evolved over time from cash to cards and so on. Despite advancements, many of these methods often involved risk and uncertainty that caused delay or sometimes failure. To avoid the frustration caused by complex payment methods, modern payment technology is introduced that is secure and facilitates a smooth experience for the parties involved. Digital payments involve the transfer of funds in online mode via card, digital wallet, or mobile payment services like Apple Pay and Google Pay.
As the usage of mobile phones has increased, these payment options provide a secure alternative that is much more convenient, accessible, and acceptable. While the technology may not modify or replace the traditional banking experiences, it has bought a shift in day-to-day purchases and overall shopping experience. The main factors such as perceived ease of use, expressiveness, and trust have affected the adoption of the technology. From a business perspective, adopting digital payment technology has numerous benefits:
- Security: Businesses and consumers benefit alike from the secure transactions available through the payment method. Each transaction is well-recorded, making the process more transparent than traditional payment methods.
- Reduce Manual Process: By leveraging the technology the finance team is able to reduce manual efforts. At the same time, customers are also presented with a payment history.
- Ease of Use: Digital payment has reduced the time and effort required to complete a purchase transaction. Users can pay without even reaching for their wallets.
An End-To-End Digital Experience
Leading businesses as well as consumers have moved on from payment that required complex and costly infrastructure to incur safe and reliable transactions. There are payment solutions that optimize the process and promote operational efficiency within the enterprise. It is high time for SMEs to make the shift to digital with payment efficiency. Taking a digital approach can not only open doors for better business opportunities but also provide a superior user experience for existing customers.
SMEs can bring significant value to their business by expanding through eCommerce platforms and incorporating an online payment system in their online store. Opting for a flexible online payment system will allow customers to choose between various digital payment options along with a few traditional payment methods. An online platform with payment technology facilitates a connected digital experience that enables a quick and frictionless purchase further adding to the customer experience.
Apart from an exceptional user experience, the adoption of digital technologies can significantly cut down administrative costs for SMEs. As business move to digital platforms, the paper-based payment processes would be reduced. It also enhances control and visibility in the administration.
The innovations in the field of digital payment technology are making this switch easy for small businesses. They are no longer required to invest heavily in physical instruments or infrastructure to enable payment in digital portals. While the investment is reduced, the benefits have only advanced through cost reduction and record retention.
An added advantage of digital or card-based payment is the information received through it. The valuable data from digital payment can be utilized to initiate value-added services that are proven to improve customer retention and conversion rates. Many businesses have recognized the opportunities in this and have started customer loyalty programs or rewards for digital payments. This is not only an effective strategy to boost sales but also helps in acquiring essential business analytics.
In outline, digital payment technology can introduce a range of benefits for businesses such as reduced payment process time and effort, reduced administrative costs, and improved visibility and cash flow. In addition to benefiting the operations within the organization, moving away from traditional payment methods has also enhanced customer engagement and customer reconciliation. Now achieve greater control of payment processes and avail the benefits of digitalization with our web and mobile application development services.
WEBSTEP has helped SMEs from diverse domains in improving their business outcomes with digital solutions. Learn more about how we can boost your digital journey. Talk to our experts today.