WHAT ARE ONLINE PAYMENTS?
Online payment means the transactions that occur using online or digital modes with no physical exchange of money involved. It helps you make payments for goods purchased and services available in a cashless way through mobile phones, cards, or the internet.
Note that online payments can occur both virtually over the internet and also physically in the premises. For example when you purchase something from Amazon and make the payment via online, it will qualify as a digital payment. Similarly if you buy something from your neighbourhood store & pay via mobile phone, it will also be called a digital payment.
HOW IS IT BENEFICIAL FOR BUSINESSES?
Saves Time: Doing online payment is a much faster method of transaction than using cards. It reduces dependency on cash and associated factors such as safety risks & physical presence. Ease of transacting online makes it a preferred option worldwide.
Easy to Set Up: Setting up an online payment gateway can be done very quickly & easily. There are many online payment enablers such as PayPal, Amazon Pay & Apple Pay, etc and banks present in your geography also have an online payment system which can be integrated with your system real quick & you can start selling easily.
Outreach to your customers Globally: This is one of the biggest advantages of accepting online payments. You can set up or expand your business to a global audience outside your city and even country. Online payment methods will help you to accept payments from any part of the world and that too within minutes or even seconds.
Reduce Cost to you Business - Bills / HR: As online payment methods are completely automated. It eliminates your requirement of keeping additional workforce in the business to handle payments, cash, cheques or bills. You will save on the inventory cost of bills, receipts & equipment to generate it as well.
Safe & Efficient Tracking: It saves you from the tedious task of handling cash & cheques involving storing and carrying it safely from one place to another. With online payments, your money would be stored safely in funds or banks online. Also you can track the exchange of money easily, download bank statements & reports in just one click mostly with online payment providers.
CHALLENGES/RISK ASSOCIATED WITH ONLINE PAYMENTS
Technical Problems: Every technical infrastructure faces unexpected disturbances, glitches or downtime. These unpredicted technical issues can create a problem in running your business for a short duration and impact sales adversely. Time to time maintenance is necessary and can be planned in advance. It should be conducted during the times when users are not active, mostly at night.
Risk of Fraud or Cybercrime: With the increase in adoption of online payment systems, the risk of getting attacked by cybercriminals or hackers has also increased over the last few years. The consumers as well as the sellers may face malicious attacks on their system like information theft, phishing attacks, theft of bank or transaction details. This can be avoided by making your system more robust and also implement additional security measures out there in the market.
As it’s clearly evident that the upside of adopting online payment methods in your business outweighs the downside. So, finding the right online payment enablement partner and implementing it in a robust way can increase your business capabilities significantly & make your business operationally efficient & more profitable.
Online payments are destined to become the norm in coming years across the globe. Ensure your business remains up to date & modern by adopting online payment methods and no one can stop you from reaping the additional benefits of it.
Thank you for reading this piece! We hope it helps you succeed in your business!
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