Small businesses strive to have efficient operations to maximize their revenues and reduce costs. One of the most discussed topics amongst small businesses is the payment method to use. Traditionally, cash payments were the most used due to easy transactions and the particular technology that was available. With the advanced technology being witnessed globally, there have emerged other convenient payment methods for small businesses. The COVID 19 pandemic has accelerated the adoption of various payment methods to enable the continuation of the business. Most of these have been online payments. Businesses should have alternative payment methods for the convenience of a customer. However, there are various factors considered before a business settles on a payment method.
Credit Card and Debit Cards
These payment methods are the basic way to facilitate online payments even for small businesses. It allows the customers to have larger purchases that are frequent. The safety measures against frauds for these transactions are strict and well covered. It has built trust with customers over time. The small business gets to protect itself from the risk of maintaining cash in the store. It includes risks such as theft. In addition, the payment method is accepted globally. It enables foreign visitors to process their payments without worrying about converting currency. Card payments increase the customer base for small businesses while legitimizing the business.
Mobile Money Payments
Mobile money payments have grown to be a preferred payment method in recent times. These are transactions conducted over a mobile device. It is over an app. Three main mobile money payments are suitable for small businesses. These include:-
- Near Field Communications Payments(NFC):-These are contact-less mobile payments that require a mobile device and an NFC-enabled card reader. It uses radio frequency identification and the NFC chips on the device to facilitate the transaction. The transaction is encrypted and secure.
- Quick Response Codes:- A customer decodes these black and white codes through their device camera. It then asks for confirmation of details of the transaction.
- Magnetic Secure Transmission Payments:- The MST sends out a magnetic signal to connect the POS terminal and the mobile device. When the device is held against a POS terminal it prompts the transaction processing.
Mobile money payments increase sales due to the customer volume it enables. The convenience of the method is time-saving and improves the customer experience.
Cryptocurrencies
A cryptocurrency such as Bitcoin is on a shared ledger of a blockchain. The blockchain is secured. It is growing to be a more affordable and efficient payment method. You can buy gift cards with cryptocurrencies from any part of the world efficiently. There is less need for a bank account to facilitate such transactions. Buying gift cards has been made more accessible. Once a consumer buy cryptocurrencies, they can store them in their digital wallet to await a purchase. It is in the case of where you buy bitcoin with a debit card. The small business would also have a wallet address that is provided by scanning a QR code. A small business requires to buy cryptocurrencies gateway to facilitate such transactions. The gateways are compatible with the provided software. Transactions using cryptocurrencies have a lower transaction fee compared to other fiat currencies. It could be the most convenient payment method for small business owners. Platforms such as Coinbase, GoCoin, and most recently PayPal have enabled small businesses to adopt the use of cryptocurrencies for the businesses to reach more market.
Conclusion
Technology continues to open doors for various sectors and business operations. There is an ever-evolving list to be utilized by small business owners. They must adopt these modern payment methods for the convenience of both the customer and the business.
