Five Benefits of Online Payments

 

Due to factors such as the health emergency, people globally have drastically reduced the use of cash, according to a study carried out in 2020. Likewise, in the first months of 2021, consumers made up to five times more transactions than last year through QR Codes and online transactions.

In this context, many small and medium-sized companies, which have been affected by the pandemic, have found in digital payments a solution and support for the revitalization of their businesses. The acceptance of these new payment methods has served as a stimulus to the complexities of the environment and has allowed them to find an effective channel to maintain sales. It is undoubtedly a trend that will continue thanks to the fact that this technology brings great benefits for businesses. Below, FinTech Payment Specialist Firoz Patel, lists some of those benefits.

Competitive Advantage

More and more users prefer to make purchases through contactless payments, so diversifying the alternatives for making transactions will allow you to reach more users. If the identified behavior pattern is that consumers will continue to use this mechanism, the most appropriate thing is to have these tools within the payment solutions.

Security

Stores that only handle cash payments are more likely to be robbed. Thanks to the technology implemented by Fintech companies, users can have greater security in their transactions and sellers are less likely to be victims of criminals, explains Firoz Patel.

An Effective Channel with the Consumer

Thanks to the implementation of digital payments, enterprises can market their products through the internet and register payments through the digital ecosystem, by either QR codes, payment links or transfers. For example, according to a recent study, during the pandemic 7 out of 10 Micro, Small and Medium Enterprises, carried out transactions through digital tools, given the restrictions brought by the pandemic.

Likewise, in this study, 60% of entrepreneurs stated that strengthening online sales was the main measure to maintain their sales. Around 98% of those surveyed indicated that the role of the internet for business will be greater during the new normal. In fact, 91% agreed that electronic commerce will be key to the country's economic recovery. That same optimism is evidenced by 9 out of 10 respondents, who say they feel confident about a positive and favorable future for their companies.

Control of Operations and Expenses

With these innovations, both entrepreneurs and users can access options that allow them to have a history of expenses, which makes it easier to manage their finances and schedule payments.

Speed ​​and Agility in Purchases

When using rudimentary payment methods, lines of people trying to pay for products at points of sale are often recurring. Through the implementation of digital payment methods, the fluidity of payments will be made more dynamic and therefore the lines in stores will be reduced while the contact between consumer and seller will be less, thus contributing to maintain a safe environment and decrease in risks of contagion of COVID - 19.

Firoz Patel, Global Executive Vice President of Payza stated that, “We have witnessed how digital payments are fundamental for companies, thanks to their functionalities as they are a complement to strengthen business strategies. Today, consumers increasingly prefer these technologies and the modernization of the payment system is progressing rapidly. Looking to the future, we see a positive outlook for the sector, so from our role we will continue working to democratize financial technology for the use of all SMEs and enterprises”.