Generation Xers spend more online than their parents and this trend is set to continue as millennials come into the higher earning brackets.
Since COVID we’ve all got used to spending online so it makes sense that if you are starting a new business you accept digital payment methods too. We’ve outlined some of the considerations why you should look at online payments - especially for new businesses.
Experts tell us that we’re heading towards a cashless society and this means that you need to have easy ways to accept cards both in-store and online.
The advantages of online payments
There are a lot of very good reasons why new businesses may want to add online payments to their tech stack.
Online payments work for all sorts of businesses from a strictly B2B service business to a corner coffee shop.
All it takes is a bit of imagination and you could find that your business could be transformed by taking online payments from your customers.
Better resilience
Taking online payments means that if your usual payment methods aren’t available (think cash and COVID), you can keep on trading.
You should always have more than one way to pay, that way if one method is unavailable for whatever reason, you can carry on working.
Easier to handle
Online payments are much easier to handle than accepting cash in-store and with a properly integrated system, they can automatically report and reconcile to your accounting software.
Higher spend
Research shows that customers who have multiple easy ways to pay tend to spend more in each transaction.
Happier customers
Today’s consumer expects to be able to use their cards in-store and online.
Giving people more options is always a plus and is likely to increase customer happiness and repeat visits.
Adding to your business model
The traditional model for most companies is to deal with customers one transaction at a time but have you thought about adding a subscription service to your business?
So many goods and services are available on subscription today from razors to beer to chocolate that consumers are more accepting than ever of the monthly payment option.
Adding in trade customers
If you only sell B2C then have you thought about adding in trade accounts?
Trade customers buy more and transact more often so if your products are suitable then it could be worth looking at operating trade accounts.
Trade buyers won’t want to pay as they go along so you’ll need to have a way of collecting all their purchases and then sending them an invoice at the end of the month. And of course, online payments help you to receive the cash when they come to pay.
Online payments encourage repeat visits
When you consider that it costs four times as much to acquire new customers as it does to sell to existing ones then you can see why it is so important to keep people buying from your business.
A customer who has already used your site and found the experience easy and had no problems at all paying is more likely to revisit rather than chance it with a new supplier and one of the things that you need to do quickly when you are a new business is to build up your regular clientele.
Areas to watch with online payments
Nothing in this life is straightforward and the truth is that you should always consider any risks to taking online payments:
Time and resource
There’s so much to do when you start your own business that having another job on your ever-increasing list is not really what you want to see.
It’s easy to get sidetracked into working on systems and processes when there are other things that may be urgent so it is important to prioritise your tasks.
Some paperwork
You wouldn’t expect a professional payment processor to set up an account for just anyone and so there will be some paperwork required and ID checks etc.
The risk of fraud
Fraud has sadly become part of our online lives and it is true that if you are taking online payments you are at a small risk of online fraudsters.
That’s why it is important to use a reputable system to process your payments.
Setting up and collecting online payments is simple
Making it difficult for customers to pay will just encourage them to shop elsewhere so if you want to give your new business the best chance of success then you need to offer simple online payment methods.
Often people think that they can’t set up an online payment processor because it will take technical skills that they don’t have.
In the past, this has absolutely been true but nowadays with systems like Access PaySuite, setting up online payments couldn’t be easier.
Get in touch today to find out more about our digital payments