Only a few years ago, online shopping and digital payments were a luxury for the affluent. Today, both of these are household phenomenons. Almost every product or service that any Indian household needs today is available online at cost-effective prices & for smooth transactions, all the businesses have a reliable online payment processor to make the process safer & quicker.
Online payments are getting popular in India rapidly. Thanks to the nationwide digital revolution, it is only a matter of time before digital transactions become the de facto payment mode in the country. However, the reason why merchants should embrace digital payments is much more than just its popularity. It must be incorporated due to several reasons that have helped businesses streamline their payment process.
Reasons to embrace digital payments
Increased Cash Flow
Businesses, especially the small ones, need a steady and stable cash flow. Such businesses can’t afford to wait for long periods to receive their margins. A constant cash flow leads to better investment and helps in scaling up the business efficiently. Digital payments are processed quicker, and the merchant receives the money almost instantaneously. Best online payment gateways like Zaakpay offer a cash-out policy for merchants. They can immediately get hold of the money received through online payment and utilize it to expand their business.
Digital payments have become much more secure than they were in the past. The customer’s payment information is encrypted before it is transmitted to the issuing bank for authentication. It has become almost impossible for cybercriminals to steal the data. Businesses can opt for PCI DSS and SSL certifications to reinforce this security among consumers. With such standardized security measures, it makes more sense for merchants to embrace online payments. Customers are used to these secure ways of transactions, and a familiar setup would encourage them to purchase the product or service without any hesitation.
One of the easiest ways to multiply sales is by targeting new market segments. Traditional payments restrict the segment that the business can target. Even with options like pay-on-delivery, the business cannot reach out to all customers across geographies. With an online payment solution, though, the business can reach out to a broader demographic. Businesses just need to reach out to these customers with their products or services, ensure timely delivery, and offer a streamlined payment process. Digital payments make it possible for businesses to pitch their product to all these untapped segments.
An online payment solution is much more convenient than traditional payment methods like cash or cheques. To make a cash payment, the customer has to withdraw money from a bank or ATM, which can seem redundant and time-consuming. Even with that, the customer is limited only to the amount of cash present with the customer. On the other hand, online payment can be initiated using any of the digital payments methods that the customer prefers. This convenience to customers can benefit the merchants with more sales. Customers are likely to purchase more using online methods because it is more convenient to do so.
Sell Products of Higher Value
It is easier to make greater profits on products of higher value than it is on cheap products. Customers usually avoid purchasing products of higher value using traditional methods like cash. This reduces demands for such products from businesses that don’t support digital payments. Not to mention, selling high-value products via cash-on-delivery is a risky task for the business too. Hence, businesses that support online payments can quickly sell higher-value products and make more profits. This is because customers can then pay via credit cards and wouldn’t have to worry about the cost burden at once and can repay their bank in more affordable instalments.
Accurate accounting is mandatory for any business, small or large. When the volume of transactions is vast, it becomes challenging to maintain proper books manually. The chances of errors also double up. Best online payment gateways like Zaakpay provide automated statements that make the process of tracking transactions easy and error-free. This data can also be directly fed into any accounting or management software that automates the book-keeping procedure.
Multiple Payment Modes
The best online payment gateways like Zaakpay support all major payment modes like credit cards, debit cards, UPI, and others. It is upon the customer to use their choice of payment mode. This increases the chances of conversion by providing the customer with a payment service of their choice. They might also get cash back or rewards for paying with UPI or credit cards, further encouraging them to purchase.
One of the significant changes that the marketplace is experiencing is concerning shopping time. Today, it is not uncommon for somebody to shop at midnight. This process can be streamlined with an online payment solution. Payment gateways are not restricted to business hours and are active 24/7. Thus, they allow customers to make purchases at any hour of the day. Many gateways also provide round-the-clock customer service to resolve any payment-related queries. This shifts the burden of providing customer support for payment from the merchant to the payment gateway company. Zaakpay is an example of a gateway company that provides this facility.
Digital transactions are becoming the new norm. Online payments that started as an advanced payment option for customers are slowly becoming the need of the hour. Hence, it is in the business’s best interest to move towards digital payment systems right away by registering for a suitable payment gateway service, like Zaakpay.