40% of B2B payments are still manual despite customer demand for digital payments because of ease and convenience. If you are still undecided about whether or not to collect payments online, here are ten reasons that might convince you.
Accepting online payments is no longer just an option. We dare say it has become a necessity in today’s fast-paced digital age. B2B online payments have become essential touchpoints for customer interactions. These transactions have moved from being mere back-office tasks to critical customer touchpoints. According to Bank of America, the checkout experience impacts repeat business, and cashless payment methods promote rapid and efficient growth. Online payment methods can completely transform your business’s billing and payment service points, making transactions smoother and more seamless. Aside from improving customer satisfaction, it can also help you reach a global audience and widen your customer base.
In this article, we walk you through the different advantages you’ll enjoy by accepting online payments.
What are Online Payments?
Online payments are transactions done via the Internet that allow customers to make purchases of goods and services electronically. Online payments are transactions powered by the internet, allowing users to pay for products and services digitally using their credit card, debit card, or bank transfers. Online payments provide an easy way to make transactions across international borders and remove the need for cash.
How do Online Payments Work?
Here’s the typical and basic way digital payments take place:
- A customer makes an order on the merchant’s website.
- After purchase, the payment gateway gathers all the required data and information for the transaction.
- The data is then passed to the financial institution or the credit card company.
- Alternatively, the customer receives bank information to make a transfer.
- The bank or credit card company confirms the transaction and informs the merchant.
- Once payment is made, the merchant sends a confirmation message to the customer saying that they have received the payment.
For more information on what online payments entail, check out our guide on getting started with online payments.
10 Benefits of accepting Online Payments for your Business
1. Online payment gives your business a global reach
A major advantage of accepting online payments is the ability to reach customers worldwide. With the right online payment platform, your business can be patronized by customers from different regions and zones allowing them to make purchases at their convenience. This ultimately expands your business beyond your local area, with opportunities for international sales and growth. Yala can help you simplify and streamline your global payments to suppliers, vendors, and service providers.
2. Online payments are convenient – for you and your customers
It is easy to set up an online payment facility for your business as many payment processors like Yala allow you to add payment options to your website with minimal technical know-how. Online payments also make it convenient for your customers to make purchases without cash, saving time.
3. Online payments are faster
In contrast with traditional methods of payment, online payment methods are much faster. Online payments save a lot of time for both you and your customers. It also decreases the occurrence of late payments from customers improving cash flow. This increases the availability of funds for you to reinvest in your business like restocking, marketing, or expanding your business operations.
4. Online Payments can be set up easily
Rather than spending a lot of time and resources to set up physical payment processes, including equipment and human resources, you can choose to use online payment platforms like Yala.
Read: How Yala simplifies international payments.
5. Online payments make financial management easier
It is pretty much easier to manage online payments compared to handling cash or cheques. With online payments, you have access to detailed records of transactions. This way, you can easily track your financial reports, sales, and cash flow. It also affords you more time to focus on the growth of your business.
6. Online Payments can boost your sales
Accepting online payments has a high tendency to boost your sales as more people will most likely purchase your goods and services if they find it easy to make a purchase via online payments. If you also offer multiple payment methods can increase your conversion rates as it allows customers to choose their preferred mode of payment. With online payments, impulse buying of goods and services is expected to be on the high side, this can increase your rate of turnover.
7. Improved customer experience
Online payment methods also offer an improved experience to your customers. Your customers will definitely appreciate the convenience and ease of being able to make online purchases and payments for your goods and services. Online payments are generally seamless and can enhance customer satisfaction and loyalty to your business.
8. Reduced Transaction Costs
Online payments are often associated with lower transaction costs compared to traditional payment methods. For instance, processing a credit card payment online can be cheaper than handling cash or cheques. Additionally, many online payment processors offer competitive rates and discounts for higher volumes, making it a more cost-effective option for your business.
9. Flexibility
Online payments come with a level of flexibility for both you and your customers. Your businesses can offer a variety of payment options, including credit and debit cards, e-wallets, and bank transfers to adequately cater to different customer preferences. This flexibility can lead to improvement in the checkout experience and reduce cart abandonment rates, as customers can choose the online payment method that works best for them.
10. Minimised Manual Labor and Error
Let’s face it, processing payments manually by cash can be time-consuming and highly prone to human errors. Online payments make it easy to automate the payment process, reducing the need for manual input and minimizing the risk of costly mistakes. This automation can certainly save your business valuable time and resources, allowing you to focus on more strategic tasks for the growth of your business.
In conclusion, online payment is about leveraging technology to enhance your business operations and deliver a better experience for your customers. From having a wider reach for your business to simplifying your management processes and improving customer satisfaction, the benefits of accepting online payments are enormous.
Whether you’re a small business just starting out or an established enterprise looking to optimize operations, online payments can give you the leverage you need to succeed in today’s digital marketplace. Check out our comprehensive guide here to learn more about setting up a digital payment system for your business.
If you have any further questions about online payments for your business, or if there’s anything you believe should have been included in the article but weren’t, please share your thoughts in the comment section.
To access a fast and easy online payment platform and explore more useful resources for your business, get started here.
Yala is a B2B cross-border payment platform that can streamline and simplify your business’s international payments. Yala also offers invoice collection, account receivable management, international payment, global invoicing, expense management, bill payment, tax management, checkout, corporate cards, and payment link services. Set up online payments with Yala here.
