With the increasing focus on contactless payments and digital currencies, many small businesses may be wondering whether they should embrace new payment alternatives. The answer is an unequivocal yes! Not only are there several advantages that come with introducing new payment technologies, but these methods also provide a much-needed boost to SMEs in terms of profits.

Let’s take a look at why small businesses should consider adopting new payment alternatives. We’ll also cover some of the options available.

Convenience for Your Customers

In today’s fast-paced world, customers want convenience – and that means being able to pay for goods and services quickly and easily. With new payment alternatives like Apple Pay, Google Pay, PayPal and Square, customers can make payments with the touch of a button from their smartphone or computer. This makes it easy for them to purchase products from your business without having to wait in line or fumble with cash or credit cards.

Lower Transaction Fees

When you accept payments via traditional methods such as cash or credit cards (especially those with rewards programs), transaction fees can really add up. However, when you use alternative payment methods such as digital wallets like Apple Pay or PayPal, these fees may be much lower—or even free. This can have a huge impact on an SME’s bottom line over time, especially if they process a lot of transactions.

Improved Security

One of the biggest benefits of embracing new payment alternatives is improved security for both you and your customers. When customers pay with methods such as Apple Pay or Google Pay, their financial information is encrypted so that no one – not even you – can see it. This ensures that customer data remains secure and prevents any potential fraud or identity theft from occurring. And since these payments are all processed digitally, there’s no need to worry about handling large amounts of cash on site – which further increases security for everyone involved.

Simpler Bookkeeping

New payment solutions also offer increased accuracy and transparency when it comes to accounting and bookkeeping tasks. By streamlining processes like invoicing, reconciliation and refunds, SMEs can save time while ensuring that their financial records are continually up-to-date.

Types of Payment Alternatives

Payment Apps

Mobile payment apps are becoming increasingly popular with small business owners who want to offer customers more options when it comes to paying for goods and services. Some apps, such as Square, allow customers to pay with just a few taps on their phone. The main advantage of these apps is that they can be used by both customers and businesses without any additional hardware or setup. All that’s required is for both parties to have the app installed on their phones.

Electronic Funds Transfer (EFT)

Electronic Funds Transfer (EFT) is an electronic method of transferring money between two parties using a computer network or telephone lines. It is easy to set up, secure, and cost-effective. EFT also allows businesses to receive payments quickly without having to wait for checks or money orders in the mail. With EFT, merchants can also track their payments in real-time and easily reconcile their accounts with the bank.

Online Payment Processing

Online payment processing is a great way for businesses to accept credit cards online quickly and securely. This type of payment processing system allows customers to pay with their credit card directly from a website or mobile app without ever having to leave the page they are on. This makes it easy for customers to purchase items from your business without any hassle—and it also eliminates the risk of chargebacks associated with traditional credit card processing methods. With online payment processing, businesses can also offer discounts or coupons at checkout to encourage more sales and increase customer loyalty.

Digital Wallets

Digital wallets are another great option for businesses that want to streamline the checkout process for their customers. A digital wallet stores all your customer’s financial information in one place so they don’t have to enter their credit card information every time they make a purchase from you. This not only makes it easier for them but it also reduces the risk of fraud since all transactions are encrypted within the digital wallet itself. Additionally, digital wallets allow you to send notifications when special offers or promotions become available so you can engage your customers and increase sales even further.

Embracing new payment alternatives can provide SMEs with an edge over competitors who aren’t taking advantage of these options yet. Not only does this method improve customer experience by providing faster and more secure transactions but it also reduces transaction costs for both parties involved in the transaction process. If you haven’t considered alternative payment options before, now might be the right time.

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