When starting your own business, you have to decide which payment methods you’ll accept. In a world where cash payments are dwindling away, you’ll want to consider non-cash options. From mobile payments to deferred payment options, there are several methods of payment that can appeal to a wide variety of consumers.
1. Credit and Debit Cards
Cash is beginning to fizzle out. While it’s still used, card payments are much more common in comparison. Not to mention, card payments are essential when it comes to online businesses. For example, payment processing for travel industry, digital service providers, and subscription businesses is a must.
Even disregarding the preference many have for card payments and the convenience that surrounds them, there are other benefits to accepting them. According to the MIT Sloan School of Management, consumers are more likely to spend more and tip more generously when paying with a credit or debit card versus paying with cash.
2. Buy Now, Pay Later
Payment methods that allow consumers to buy now and pay later essentially act as a credit card, minus a hard credit check and annual fees. They also don’t have interest as long as the payments are made on time each month. The convenience and flexibility of buy now, pay later options like Afterpay or Klarna are appealing to many consumers.
3. ACH Transfers
Electronic bank transfers or ACH are another option businesses can offer as a form of payment. ACH transfers are especially useful if you sell high-value products or services.
Small business owners can save on processing fees through this option. Not to mention, they can also receive payments quicker and have further protection against chargebacks. Consumers, too, often love this option as for them, it means a convenient and streamlined way to pay.
4. Google and Apple Pay
Contactless mobile payments via Google or Apple Pay are another popular payment option that many small businesses today offer. Like credit cards, these can be taken in person or made online, which is appealing to both consumers and business owners.
Not only are these payment methods convenient and contactless, but they’re also more secure and help speed up the checkout process. Accepting these mobile payments also allows for fewer lost sales. Missing wallet? No problem. Most consumers keep their smartphone on them at all times.
5. Recurring Payments
Subscription-based businesses, gyms, cleaning services, daycares or preschools, and those offering financial services like insurance can all benefit by offering recurring payments as a form of payment.
Business owners benefit from recurring payments as they ensure more predictable revenue and fewer missed payments. From the consumer side, recurring payments mean not having to remember to make regular payments on time and being better able to budget properly.
Conclusion
Business owners have several ways to accept payments from customers. In this day and age, accepted payment methods should go beyond just cash. From buy now, pay later payments to payments that can be made by phone, there are many convenient ways to make monetary transactions.
