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Providers of digital payment systems, what do SMEs ask for?

Providers of digital payment systems or payment gateways are fundamental tools, especially in e-commerce businesses, because they offer security and confidence to online transactions. They function as virtual POS, that authorize credit card payments from web or mobile applications. In short, we are dealing with platforms that facilitate electronic payment via Internet.

In fact, SMEs usually use electronic payment tools to carry out different activities, but above all to place their products abroad.

Payment gateways are services that verify and accept (or, failing that, reject) the transfer of funds between buyers and sellers through various payment methods, such as bank transfer or card payment. We should not confuse them with wallets (such as Apple Pay or Google Pay), which are limited to allowing the management of payments between individuals or companies.

They are important because in addition to offering a great payment experience to customers, they can help reduce considerably the fraud with credit cards. Specifically, payment gateways act as intermediaries that ensure that customer data is encrypted and secure, according to Marketing4Ecommerce.

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Influence on the digitization of SMEs

According to a Visa study, 90% of SMEs are optimistic about the future of their businesses, and the prospects for 2022 go through digitizing their businesses even more. Some of the changes imposed by the pandemic, such as the increased use of digital payments, they are here to stay– 82% of SMBs said they will accept digital options in 2022 and almost half (46%) of surveyed consumers expect to use digital payments more often in 2022, with just 4% saying they will use them less.

“Payments are no longer simply about completing a sale. It is about creating a simple and safe experience that reflects the brand in all channels and provides utility for both the company and its client”, explains Jeni Mundy, Global Director of Sales and Acquisitions at Visa. “The digital capabilities that small businesses developed during the pandemic, from contactless commerce to e-commerce, helped them pivot and survive, and can now help them find new growth and thrive.”

Of the small businesses surveyed with an online presence, 90% agreed that their survival during the pandemic was due to a increased effort to sell through e-commerce, and reported that, on average, more than half of their revenue (52%) came from online channels in the last three months. As small businesses look to reach more customers online, 50% plan to increase cross-border sales by 2022.

82% of SMEs surveyed said they plan to accept some type of digital payment option in 2022 and 73% consider accepting new forms of payment essential for the growth of their business. Of those surveyed, 24% said they plan to accept digital currencies such as the bitcoin cryptocurrency. Most of the SMEs surveyed expect their business to switch to relying exclusively on digital payments in the future. While 64% anticipate being able to make this change within 10 years, 41% say it could be within the next two years.

Benefits

SMEs are notably benefited by the use of digital payment systems. In the first place, because these gateways allow easily monitor daily sales with the consequent optimization of profit margins. In addition, entrepreneurs will be able to further develop their business by expanding their customer base and participating in e-commerce through digital payments.

Likewise, they represent a considerable saving of time and money since they prevent those responsible for SMEs from having to make expensive trips to visit suppliers. In addition, these types of payments guarantee both the security and privacy of the government.

Finally, it should be noted that providers of digital payment systems democratize access to banking services and credit for the entire population, not just the owners of small and medium-sized businesses.

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