October 2, 2022
digital payments modes

digital payments modes

Digital payments have become the norm. Fuelled by mobile devices, smart technologies, and 24/7 internet connectivity, the way consumers shop and pay have changed. In response to these evolving consumer preferences, the market itself is undergoing a profound transformation, with both online and brick-and-mortar businesses looking more at digital solutions to improve sales, acquire new customers, and reduce costs. This presents opportunities for SMEs to enable the use of digital payment methods, create a journey of digital consumer discovery and marketing to capture the interest of their audience.

Digital payments can positively impact SME’s given consumers’ preference for digital channels, it’s not surprising to see that consumers are more inclined to make a payment through digital channels rather than the traditional payment methods. Further, there may be expense and revenue benefits to accepting digital payments modes.

Expense reduction: The cost of accepting card payments is much lower than other payment methods because there are no setup costs or monthly fees associated with accepting cards at point-of-sale (POS). The merchant pays no fee for accepting card transactions; however, there may be some transaction fees that are levied by their acquirer bank.

What Are The Top Digital Payment Methods That SMEs Can Integrate?

Banking Cards: Banking cards are the most preferred method of payment as they provide more security, convenience and personal control than any other method of payment. Banks offer a range of banking cards housing features excellent customer service and features. Banking cards save both customers and merchants’ time and money when it comes to making transactions.

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USSD: The Unstructured Supplementary Service Data (USSD) channel is a mobile money platform that enables customers to make transactions through tapping *99# on their mobile device. To perform any transaction, a user needs to register his/her account with the bank.

AEPS: Aadhaar Enabled Payment System (AEPS) is an online and offline real time settlement system enabled by the UIDAI. It offers digital payment options to customers through their Aadhaar number linked bank accounts, mobile number or virtual IDs. The system is built on three core pillars – interoperability between banks, business correspondents (BC) and customers, seamless fund transfer between banks and BCs for financial inclusion with zero interchange fee. 

Mobile Wallets: Our digital payment modes make it easy to do business. With your VIMM mobile wallet, you can make payments online or at one of our partnering retailers. By linking your credit card or debit card information to your mobile wallet, our app makes the transfer of money online to a mobile wallet fast and seamless. That’s how it works!

Point of Sale: A point of sale (PoS) is a device used for data entry in the retail industry; it is also known as a Point of Service or POS terminal. Its primary function is to allow customers to pay for goods using debit or credit cards, but these machines may also be equipped with other transaction options, such as online payments.

How Do Digital Payments Benefit Small Businesses

The benefits of digital payments are many. Digital payments are 7x faster than non-digital payments. When SMEs employ these digital online payment gateway methods, they incur fewer business expenses, experience significant time saving, and enjoy the following advantages like:

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The better customer experience (e.g., accepting payments from any location via mobile phone) 

Cost reduction (e.g., reduced people cost versus paper-based transactions) 

Record retention (e.g., cloud-hosted transaction data) 

Deliver competitive advantage (e.g., ability to access overseas markets)

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