The Top Reasons Consumers Prefer Online Payments

 

Consumers are starting to feel more comfortable with online payments as they become more common. While some still prefer cash over cards, most people now have access to at least one payment method and trust it more than traditional bank accounts. Some of the top reasons consumers prefer online payments include the convenience, security, and anonymity that they offer. In this blog post, Fintech specialist Firoz Patel discusses the top three reasons why consumers prefer online transactions instead of card transactions.

 

They eliminate geographical boundaries

One of the biggest benefits of online payments is the fact that they don’t have geographical boundaries. What are geographical boundaries? Geographical boundaries are places where you have to abide by certain laws and rules as per your country and state. This includes things like tax laws, card and banking laws, rules regarding the transaction value of a transaction, and laws on cash transactions. For example, in the United States, most online payments are not taxed. That means if someone sends you money online, you don’t have to pay taxes on it. That’s an incredible advantage, especially if you make most of your money through online activities and sales. With a geographical boundary, you might have to charge tax at a relatively lower rate and then, you get taxed at a much higher rate.

 

They’ve never been more convenient

Another major reason why consumers prefer online transactions over traditional bank accounts is the convenience they offer. When you open a bank account, you have to get your business certified and open a branch in your area. It might be easy to get certified in your area, but you might have to travel longer distances to open a branch. On the other side, online accounts are all about convenience. There are no branches to visit, no books to get certified in, and no business license required to have an online account. Online banking has also become more convenient over time, ads Firoz Patel. In the past, users had to visit a website and log in to view their transactions and make payments. Today, online banking has evolved to a point where it enables you to access your accounts from almost any device that has an internet connection.

 

They give consumers more time

Another benefit of online transactions is the fact that they can be made anytime, anywhere. When you go to a branch, you might have to visit it at a particular time of the day. Banks are regulated by states and federal laws, and specific timings need to be adhered to as per those laws. In some states, cash transactions can be made only during certain days of the week. Online transactions, on the other hand, can be made anytime and anywhere. This also means that you don’t have to worry about missing a payment or even a scheduled online transaction. That makes online transactions even more preferable because consumers don’t have to adhere to certain timings and rules related to physical store visits.

 

They provide an additional layer of purchase protection

One of the most important benefits of online payments is the fact that they provide an additional layer of protection to the purchases you make. Traditional bank accounts do not have any form of purchase protection. This means that if something goes wrong with your purchase, you have to bear all the expenses related to that purchase, explains Canadian founder and CE Firoz Patel. With online accounts, on the other hand, you have a form of purchase protection called extended warranty or protection plan. These plans are offered by a number of banks and credit card companies. These plans provide one or more layers of protection against many types of issues. Traditional store warranties cover the product for a specific period of time, usually one year. That means if something goes wrong with the product, you get to return it and get your money back. The problem with store warranties is that they cover only a particular range of issues. What happens if the product fails outside this range? With extended warranty plans, on the other hand, the protection is much broader. These plans cover issues such as manufacturing defects, power surges, and software issues. What’s more? The coverage is usually for a fraction of the cost of a new product.

 

They provide cost-free benefits

The final benefit of online payments is that they provide consumers with many cost-free benefits. Traditional bank accounts come with many benefits such as low-interest loans, overdraft protection, and direct deposit. These benefits might sound good, but they usually come with a cost. All these costs can add up to a significant amount over time. Online accounts, on the other hand, usually come with no costs or only a nominal one. Some banks even let you choose whether you want free services or not. Some banks let you choose between free checking and free savings accounts. Either way, you can opt for a payment method where benefits come for free. Examples of online payments that provide cost-free benefits include online bill payment, online bank transfers, and online shopping concludes Firoz Patel.

 

They provide an additional layer of support

The final benefit of online payments is that they provide consumers with an additional layer of support. In the past, many people preferred brick-and-mortar stores for support. Now that online stores have become more common, consumers can also choose to go to an online support forum or community. Online communities make it easy for consumers to connect with other like-minded people and get help whenever they need it. For example, a woman who used to be a heavy gambler but is now trying to clean up her act can ask other people in the community to help her by giving her advice on how to stay away from gambling. Online forums are also a good way to learn about new products and features that are being developed by the bank or card provider. Once a new feature becomes available to consumers, it is usually mentioned in the community forum. All these benefits make online payments an excellent choice for consumers. They’re easy to set up and use, they provide a number of cost-free benefits, and they provide an additional layer of protection. These are the top reasons why consumers prefer online payments. What are the advantages of online payments for your business?