Cash may still be king, but its grip on the throne is slipping. As many as 80% of consumers now prefer to pay with their debit or credit cards over cash for payments, according to Fundera. And then there are electronic wallets like Apple Pay or Venmo. As digital natives grow into spenders, they’re turning to their phones for seamless digital payment experiences, and according to data presented by Finaria, the digital payments industry is predicted to hit $6.6 trillion in 2021.
In short, when you give your customers electronic and mobile payment processing options, you’re giving them what they want. If, however, you’re running an outdated system, you’re likely leaving customers frustrated.
So how do you find the system that keeps your customers coming back, boosts your efficiency and makes you money instead of losing it? Check out these guidelines for finding the payment processing setup that’s right for you.
It’s not always easy to keep track of the latest in payment processing systems. Here’s a basic rundown of some of the types of payment options and the lingo you’ll see when finding options that suit your business:
The pandemic has accelerated the rise of mobile and contactless payments.
If you’re operating a brick-and-mortar location, remember that customers are eager for contactless, automated transactions to avoid exchanging cash or cards—and germs. The U.S. had been behind the rest of the world in contactless payment, but Mastercard alone reported a 40% jump in them post-pandemic, an upward trend experts expect to continue across all card types. If you haven’t yet invested in a system that allows for NFC or mobile payments, now is the time.
You may not realize all the different ways that upgrading a payment system can benefit you and your bottom line. Here are several to consider:
Ask your customers where they would like to see you offer payment options. Maybe your business offers in-home services like plumbing or landscaping, and your younger customers don’t have checks. You could look into a system like Square that offers you a small card reader to plug into your smartphone, allowing them to pay by card as soon as you’ve done the job.
Do you have a salon where people can only tip in cash? A store plagued by long lines? A recently launched mobile app where you want to enable more in-app purchases? An e-commerce site with an abysmal conversion rate? All of these situations can benefit from upgraded, flexible payment systems.
Once you’ve narrowed down what your customers need, ask yourself what you want to prioritize in a provider. Topping your list should be data security. Check a company’s track record on data breaches, how they were handled and their current methods of protection. Only choose a company that meets and maintains the Payment Card Industry Data Security Standard (PCI DSS).
One of the best security features to look for right now is the use of artificial intelligence to prevent fraud. Only AI can keep up with the complexities of cybercrime, detecting problems before they happen and ensuring that your provider (not you!) is the one worrying about security.
When you shop around, check in first with your current provider. They may have upgrade or add-on options you didn’t know about. If you use accounting software like QuickBooks, you can also check to see if you can include their payment processing services in your package.
If you’re starting fresh, you may find yourself drawn to household names like Apple, Google, Chase, Mastercard and Amazon, all of which offer mobile wallet payment systems. This can be a smart move—institutions like these have the resources to protect data, are recognized by consumers and set the standards for the latest and greatest payment features you and your customers will grow to love.
That said, these can also come with higher fees, as well as fewer options for customization. If you’re just starting out or don’t handle huge volume, you might find that companies like Square, Payment Depot, Veem, Clover or Stripe are more within your budget, have more options for personalization and have tech support and features more catered toward small business owners.
Whatever you decide is right for you, a fresh payment system could be the fresh start you need to take your business to the next level.
Product features may have changed and are subject to change.