Home Finance Top 5 Ways Digital Payment Solutions Are Supporting Retail Businesses

Top 5 Ways Digital Payment Solutions Are Supporting Retail Businesses

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Personalised contactless payment tools have made cashless payments a reality. In fact, people turned to digital payment solutions way before the pandemic started looming over the world.

Nowadays, customers and businesses alike prefer making B2B and B2C payments online through digital payment tools. With digital payments replacing paper cheques, the trend of payment digitalisation has changed the retail businesses for good.

The ubiquitous availability of mobile devices has made the adoption of mobile payment wallets increase significantly around the world. Reports suggest that the annual transaction value of the next-gen payment tech market will cross 3.1 trillion USD by 2022. In such a scenario, a retail business that doesn’t leverage the benefits of a digital payment tool is simply missing out.

 

1. Quick Online Payments to Boost Retail Business

The ongoing pandemic has people stuck to their homes and not venturing out until it’s absolutely necessary. In such a situation, there is bound to be an increased dependence on cashless payments. Retail businesses can take as much advantage of this scenario as any other business verticals.

In simple words, digital payment tools have a crucial role to play in the success of each retail business. In the age of eCommerce, retailers also need to offer faster online payments to their customers and stakeholders.

It helps businesses easily accept payments from customers and other vendors using advanced B2B digital payment tools. They are also able to send digital invoices directly to the customer’s mobile phone.

The resulting rise in payment speeds can enhance cash flow by offering greater flexibility to a retailer in vendor payments and managing payrolls. In this way, convenient and quick digital payments can help steer business growth even amidst the pandemic.

 

2. Increase the Sales and Customer Retention Rate

Retail businesses with B2B payment solutions help enhance trust and assure customers that they securely make payments, especially since vendors also rely on online payments as a more convenient and quicker way than the conventional cheque-based payment.

Yet, some retailers are still reluctant to accept online payments or pay by credit card. In the years to come, these companies will also turn to digital payment tools to remain competitive.

Contactless payment modes are highly convenient and give customers multiple options to pay for their favourite products. Most importantly, they increase the sales and retention rate by reducing hassles and saving a lot of time for retailers and customers alike.

 

3. Digital Payment Methods to Attract Customers

Conventional payment methods are unable to attract more customers nowadays. It is natural for modern tech-savvy customers to want to pay using digital payment modes of their preference. The integration of a B2B payment solution in the existing system can effectively help retailers target this audience.

It also lets the retailers venture into new markets for business expansion and addresses more audiences even amidst the pandemic. It helps retailers as they can get better sales prospects with higher profits.

Additionally, many retailers nowadays run reward systems in mobile wallets. The aim of mobile wallets is to attract more customers to spend more through reward points, vouchers, and cashback.

 

4. The Heightened Security Features of Digital Payments

In online transactions, security is of prime importance, and conventional modes of payment are never as secure as digital solutions. Digital payment tools automate the overall system and bring down financial risks by letting the customer use their credit cards to pay.

The virtual terminal of the digital payment tools can collect Level 2 and 4 transaction data. These include the business name and address of the client and considerably reduce the possibility of fraud.

Some of the top mobile wallet platforms also integrate encryption and other advanced features to offer added security for digital transactions.

 

5. Offering Better Customer Experience 

B2B digital payment tools can make online payments more convenient for both customers and vendors. They help improve the overall customer experience. Several customers still prefer paying through debit or credit cards to gain rewards and manage their expenses.

After mapping out the typical customers’ journey, retailers can turn to B2B payment solutions. They can consider the scenario from the customer’s perspective and come up with a customer-centric approach. It helps the retailers know more about the customer’s requirements and preferences. A digital payment mode can also help the retailers grab new and exciting business opportunities.

 

Summing Up

Customers and businesses are looking for quicker, convenient, and safer methods of online transactions to meet their requirements. Any business, retail or otherwise, which does not incorporate digital payments in this scenario, will fall behind the competition. Digital payment solutions can be a great way of reaching out to younger audiences, thus increasing your customer base.

So, let the pandemic be the reason why you make the significant shift from conventional to cashless payments.