It’s important for small- and medium-sized enterprises (SMEs) to continuously adapt their operations and strategies to stay competitive in the marketplace.
Diversifying funding sources for one not only helps small businesses to gain stable cash flow but also makes their growth and expansion plans possible.
Another investment in the area of business finances that owners otherwise cannot forego is payment solutions. In this age of digital transformation, SMEs must catch up and innovate their payment solutions rather than stick to cash-only arrangements.
Adopting digital payment solutions improves cash flow and translates to a wide range of benefits for sales, productivity, and in-store customer experience.
What are the benefits of Better Payment Solutions for Small Business?
1. Caters to a wider customer demographic
One of the primary advantages of improved payment solutions is the wider customer reach. More than 50% of consumers in the UK now prefer cashless payments over the hassle of bringing their bulky wallets or having to stop by banks and ATMs to withdraw cash.
On top of the convenience, hygiene concerns with handling cash during the pandemic have also contributed to digital payments becoming more commonplace.
The financial technology sector has also evolved to the extent that customers are no longer confined to just debit and credit cards and can instead use their smartphones or smart watches for contactless payment services like PayPal and Apple Pay.
Unless your business has the systems and equipment to accept these payments, you’re missing out on a significant portion of sales.
2. Ensures safety and security of transactions
Small businesses know how hard it is to secure cash payments, with threats ranging from counterfeit money and fraud attempts to actual cases of theft and break-ins.
While SMEs have fewer resources to cover up for financial losses, payment processing can help heighten security measures as daily earnings are safely deposited and stored in the bank account.
With the use of a modern card payment machine, the safety and security of the transaction extends to the customers’ end, too.
Card machines accept a wide variety of payment methods, from card to contactless, without compromising the customer’s account information and running the risk of identity theft.
This is made possible by the equipment’s compliance with the PCI-DSS, a set of information security standards.
3. Improves customer experience and satisfaction
More than successfully handling one-time transactions, every small business owner recognises how crucial it is to create a positive customer experience and ensure they return to make more purchases.
While long queue times can diminish customer satisfaction and lead to a drop in sales, technology in the form of optimised payment solutions can make the checkout process smoother and faster.
You can even invest in portable payment machines on top of adding more countertop tills.
Regularly updating the software and hardware for your payment processing also reduces the chance of system failure or breakdown, especially when there is an influx in customers and sales, such as during the holiday season.
4. Increases the efficiency of administrative tasks
Digital payment solutions speed up the checkout process and offer small businesses a more efficient way to track and manage their finances.
Payments made via card readers or machines are documented and traceable so owners can see all the transactions integrated into one place.
Rather than having to collect receipts and enter data manually, this automates the transaction process and even serves as a database for making business decisions.
Businesses can use insights from transactions to outline which areas they can cut costs and which customer preferences must be leveraged for future promotional strategies.