Cash is king. Not anymore! Cash has been supplanted. Now, convenience is king, and the better you are at providing it, the more likely you are to attract attention in a highly competitive market.
Better yet, convenient paying options mean you get paid quicker too.
Does your business operate from a physical store or a website? Or both? Being able to process an online payment has become necessary to facilitate your cash flow, regardless of whether your business is brick and mortar or internet-based.
Whatever your business model looks like, getting paid is high up on the list of things to know about. Let’s talk about online payment options for small businesses.
Online payment methods for small businesses
If you’re a small business, online payment methods are accessible to you too. Even if your business is service-based.
These days it’s not uncommon to send and receive invoices by email. Actually, it’s encouraged. When you send an invoice by email, it’s quite easy to incorporate a link to a payment portal at the same time. The same goes for sending out your payment reminders.
When it comes to online payment systems for small businesses, the best approach is to learn as much as you can about each method. You’ll want to reach your clients with the most current and convenient options so that it’s easy for them to pay you.
In a constantly changing online world, personally staying up-to-date isn’t always possible. However, if you use accounting software, you can make your own life easier by integrating online payments with the systems you already have. Chaser’s payment portal really helps you out here.
Types of online payment methods
It’s quite natural to think of online transactions as taking place from behind a computer. However, now that contactless payments have become a thing, slippers and a cup of coffee aren’t involved in these deals as much anymore. Online payments can take place even when your customer (or client) is standing right in front of you.
Which online payment options should you offer? There isn’t a one-size-fits-all solution. You'll need to take a look at your own business model while factoring in your location and the type of consumers you have.
So, what are the different types of online payment methods? There are a few different ways your business can receive an online payment.
Below are five popular online payment tools:
1) Payment gateways
Most people expect to be able to pay by card. This means that payment gateways are important for point of sales systems as well as e-commerce sites. They are crucial for processing credit card payments.
Some of the most widely accepted credit cards are:
- MasterCard
- Visa
- American Express
- Discover
Payment gateways encrypt confidential client data that is transferred during the payment process in communication with the issuing bank. The encryption, communication, and approval all happen within a matter of seconds.
Payment gateways keep transactions secure. If a customer feels just a little unsure about releasing their payment information to you, they might abandon their cart and go somewhere else. (Not what you want.) Payment gateways are designed to instil confidence in your customers while protecting you from unnecessary loss of sales.
2) eWallets
An eWallet (or digital wallet) allows a customer to use their smartphone to make a secure payment, either in-store or through a website. Transacting is fast, secure and convenient.
Here are a few examples of popular eWallets:
- PayPal
- Apple Pay
- Samsung Pay
- Amazon Pay
- Google Pay
As long as a customer has their phone with them, they can pay you.
3) Electronic funds transfer
Electronic funds transfer (EFT) is a payment tool that has been widely used for quite some time. You’re probably already familiar with how it works. This option allows your customer to deposit funds from their bank account into your bank account using internet banking.
Here are a few EFT examples:
- Electronic cheques
- Direct deposits
- Debit card payments
- Internet payments
EFT payments are great if your business generates recurring payments or manages subscriptions. Regardless of whether you’re selling a product or offering a service, EFT payments are a worthwhile option.
4) Cryptocurrency
If you’re really into keeping up with the times, you might want to consider accepting cryptocurrency payments. However, not everyone uses crypto so that will depend on your customer base and the type of business you run.
It’s interesting to consider that you can pay with crypto on sites such as Amazon. Some of the services that enable crypto transactions include BitPay, Bitrefill, and Blockcard. Even if this option isn’t ideal for your business model right now, it could be a possibility for you in the future. Crypto is becoming increasingly accessible for online transactions.
5) Quick response codes
QR codes are another way of processing a payment from a smartphone.
If you run a coffee stand that serves people on their morning commute, offering a QR code makes perfect sense. But, this payment tool isn’t limited to on-the-go beverages. As you probably already know, you can pay for all sorts of things, even accounts, with QR codes.
With a little creativity, you can apply QR codes to almost anything. And, most banks have included code scanners on their mobile banking apps, making this a viable quick payment option for most businesses.
What is the best option for online payments?
What are the most popular online payment methods? Statistics show that eWallets are the clear winner in the global online payment popularity contest. The runners-up are credit and debit cards followed by bank transfers.
So how do you choose what to offer your clients? It’s not about finding that one perfect solution, you have to decide what works best for your situation. If anything, the best option for online payment platforms is actually to use a few.
At the end of the day, tailoring the right combination of payment methods means that your customers can pay you instantly and easily. It’s an effective way of guiding your customers to the point where they can pay you on time.
Convenience means letting your customers choose the option that suits them the most. Making payments as easy as possible is a good way to encourage your clients to make their payments promptly. As we all know, getting paid on time is key.
In short, the answer is variety. Offering the right variety is the best option for receiving online payments.
Taking your business to the bank
There's much research and admin involved in setting up the right online payment systems. If you’re feeling slightly overwhelmed, just know that there is an easier way.
Are you feeling unsure about how to set up online payments for your business? Chaser offers a payment portal that’s just as convenient for you as it is for your customer base. You don’t have to stress about all the types of online payments, or whether or not your platform will be secure. Chaser has done that leg work for you.
You can offer your customers the information they need to pay in a professional, one-stop arrangement that also provides access to multiple payment options. And it’s instant.
Start your free 14-day trial here.
