Without a doubt, the COVID-19 pandemic flipped the payments industry on its head. Driving a colossal boom in digital payments unprecedented in history.
Many businesses were caught off guard and fell rapidly to broad store closures and social distancing tactics across the country. Those that fared better saw a surge in digital payments and embraced the pandemic's difficulties, switching their business to operate entirely online.
According to Visa ®'s Back To Business Study, up to 65% of business customers want to continue utilizing contactless payments even after the pandemic. Businesses have discovered that they have profited greatly from this approach and wish to continue using it.
Customers Want More Digital Payments
According to Grand View Research, the global digital payment market will be valued at $68.61 billion in 2021. From 2022 to 2030, it is predicted to expand at a compound annual growth rate (CAGR) of 20.5%. Customer demand for "real-time payments" has primarily driven market expansion.
During the pandemic, customers globally moved from "offline buying" to "online shopping," resulting in higher-than-normal online sales as well as an increase in "online payment solutions." According to Digital Commerce 360, online sales in the United States were valued at about $204.62 billion in the third quarter of 2021. This was a 6.8% increase over the previous year's third quarter in 2020. Customer concerns about crowded areas and avoiding physical contact during the pandemic increased the demand for online shopping.
The Time Has Come To Adopt Digital Payments
Now that we've seen the impact of the pandemic and customers' predisposition for real-time payments, it's safe to claim that "digitization of payment processes" will not only benefit your bottom line but may also help you stay in business in the long run.
Here are 5 more reasons why accepting digital payments is more important than ever.
Accelerated payment processing speed
Faster payments mean you can better control your cash flow in real time for any business. You can watch your payments clear and settle fast.
Digital payments are faster by definition. In fact, according to Deloitte's PayTech Revolution study, digital payments are almost 50% faster to complete than "conventional purchase order processing."
Reduce administrative expenses
Digital payments are less expensive because they eliminate physical work, which can lead to human errors. When you include the cost savings from not having to print or mail checks or invoices, your overall expenditures are reduced even more. Less expense means more growth for your bottom line.
Increased cash flow
Digital payments provide business owners with an instant, panoramic view of their financial health, allowing them to make swift financial choices based on real-time data. Because digital payments boost cash flow significantly, business owners are better positioned to evaluate their financial data to acquire larger, more accurate insights.
Increased Customer Satisfaction
Customers have shown a preference for businesses that accept their chosen payment method. And, as cash has declined in popularity, new kinds of payment, such as digital wallets, ACH, and, of course, debit and credit cards, have grown increasingly common. Customers prefer these methods of payment since they are faster and more convenient.
According to the Visa report, more than 72 percent of the businesses polled expected their customers to prefer digital payments in the near future.
It was discovered that both Baby Boomers and Millennials were at the forefront of digital payment use. Within the digital commerce space, the Gen Z group is regarded as "early adopters."
The approval procedure is much more efficient.
When a customer receives their invoice for the first time, they must confirm that all charges are accurate before authorizing payment. This may be a long and drawn-out procedure, causing a delay before a business gets paid.
When "digital payment systems" are implemented, however, businesses may create self-service portals where customers can see their invoices and make payments. If you have any queries or complaints, you may submit them straight into the portal, where they will be viewed and addressed in real-time.
Digital Payments Is The Future
Although the COVID-19 pandemic was a key catalyst that accelerated the adoption of digital payments on a global scale, the trend is not going away anytime soon. On the contrary, the majority of customers have stated a wish to continue utilizing digital payments long after the pandemic has passed.
As stated in this article, organizations have several reasons to include digital payments in their business plan. They will not only be able to receive payments more quickly and securely, but they will also be able to monitor their cash flow.
Businesses that accept and embrace digital payments better position themselves for current and future success.