Digital Payments: How They Help Businesses Grow

2021-10-26 18:06:57
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hand with a mobile phone that shows successful digital payment

Picking the best payment method for your store is one of the most crucial factors when running a business. Cash-on-delivery continued to be the preferred payment method locally in 2020, but there is a rise in digital payments with the need for social distancing.

Here are some facts about traditional cash and digital payments. We hope this will help you decide on whether digitizing payments should be the next step for your e-store.

The Disadvantages of Traditional Cash Payments

1. They are a physical bulk

Carrying paper cash consumes space in your baggage that can be freed up if you keep your money digitally.

2. They are harder to track

Using paper cash doesn’t generate bank statements and online records. People must keep a manual purchase log if they want insight into where their money is going. 

3. They are irreplaceable when lost or stolen

Bills and coins don’t have identifying factors that can be traced back to a specific owner. They are lost for good when they are physically lost. Meanwhile, digital money lost as a result of theft and errors may be returned by banks and other institutions, depending on the situation.

4. They pose higher security risks

Paper cash can attract armed robbers that pose physical harm.

5. They wear and tear

Traditional cash payments lack security and sustainability. They wear and tear, can get lost, and may need to be physically replaced with new reproduced versions throughout the years.

6. They limit the customer’s options

Having just a cash mode of payment end up limiting the customer’s options. Customers may now see visiting physical stores as unsafe and troublesome. They will likely switch to brands that offer digital payment methods that they can use at the comfort of their homes.

The Advantages of Digital Payment Systems 

1. Cashless systems lower operational cost

They lower the merchant’s operational costs as shoppers can settle transactions using a phone, tablet, or computer. This eliminates the need for bulky and expensive cash registers that come with costly maintenance fees.

Businesses can also set up a digital payment gateway like SwiftPay at zero cost. They just need to register through this form so our team can schedule a product demo and do the set up and implementation for free.

2. Digital payment systems enable remote terminal management

They can operate with remote terminal management so that merchants can be paid wherever and whenever. They empower your business to sell to customers from everywhere, even those who are at home. This increases the shopping opportunities of your customers and spurs them to buy more. 

3. Electronic transactions let you receive payments faster

They are easier to reconcile and collect so merchants receive the payments faster. Making use of the latest technology and a great Internet connection speeds the process up even more.

The Advantages of Both Traditional and Digital Payment Methods 

There remain advantages to using both traditional and digital payment methods because there are different customer preferences. Paper cash is for buyers who don’t want transaction fees, while digital payments are for those who like its convenience and digital footprint.

Using both systems will help businesses meet different market needs and increase their operational flexibility with less friction from people who prefer one over the other.

How SwiftPay Can Help

SwiftPay is a payment gateway for online stores. Our payment processing platform directly and instantly debits bank accounts, allowing shoppers to pay conveniently online. There is also no need for e-wallets and credit cards that may come with more transaction fees when you use SwiftPay.

Our team will be offering more digital payment methods soon. You can read the answers to the common questions about us here or sign up for a free product demo through this form.

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