Digital payments are a fairly consolidated reality in companies. It is very difficult today to find any organization of a certain size that decides to give them up. Digitization is advancing and the pandemic has been the final push for companies that had not opted for it to make a definitive decision. Therefore, today we are going to talk about cost and benefit of incorporating digital payments into your business.
Currently, the cost of cash is manifested in expenses that affect businesses, financial institutions and governments such as the decrease in efficiency at points of sale, the risks of handling cash and the production, distribution, and replacement of banknotes. and coins; among many other indirect costs that cash has. On the other hand, there are social expenses, related to tax evasion and the limited access that certain sectors have to the financial system, which reduces the opportunities to enjoy the benefits offered by the system to the population, according to Mercados y Trends.
The benefits offered by the adoption of digital payment technologies are extensive, both at the macro and microeconomic levels. At the macroeconomic level, digital payments bring with them a greater attraction of investment for the benefit of the country’s economy. At the microeconomic level, it represents the opportunity to improve the quality of life of families and communities through by increasing your savings capacity.
As cash becomes more obsolete and the acceptance of electronic transactions grows, businesses and consumers are demanding faster, safer and more convenient payment methods, and the benefits of digital payments are many.
The speed of the transaction means that consumers have more time, as they save queues and waiting. With innovative technology and rigorous security, digital payments are very low risk and provide a higher level of protection in purchases when using credit cards that ensure the lowest price, extend guarantees and protect against improper charges, according to Enelx. In general, online payments are hassle-free and cost nothing.
Next, we will analyze the main advantages for companiesespecially SMEs, the adoption of this type of payment, according to the classification established by Contact Center Hub:
Instant payment
Electronic payments are much faster than traditional payment methods like cash or checks. In the case of online payments, there are no time or location restrictions. Payments can be made easily at any time from anywhere in the world. The comfort and accessibility They immediately answer the question of why digital payment, which takes place in a flawless nanosecond transaction, is better than cash payment.
Greater payment security
Electronic payment systems offer multiple ways to secure payments, such as tokenization, encryption, SSL, etc. In fact, there is the option of charging without anyone having access to customer card data.
Processing cost savings
If you want to provide payment services to customers, you must first engage a card processor. This will provide a payment gateway for processing at a fixed cost. On the other hand, if an electronic payment system is used in the business, you do not have to incur such high charges. You only have to pay a fixed subscription to the service provider.
contactless
In the times of the Covid-19 pandemic, people have started to find ways to avoid human contact so as not to be affected by the coronavirus. Because of this, the need for contactless payments has increased. Contactless POS terminals can be used in the business to avoid contact. In this system, the beneficiary must hold their phone near the terminal and their payment will be processed automatically. Additionally, you can allow customers to make payments using QR codes or one-time passwords (OTP).
In conclusion, cash transactions have started to decline after the integration of an electronic payment system in the markets. This means that small businesses have to start using the latest technology to avoid the risk of being overtaken by the competition.
