It is common knowledge that cashless payment systems became part of everyday life in most countries. The latest market report by Smithers forecasts the number of non-cash transactions to reach 1.22 billion by 2024.
No surprise, the payment system growing market attracts new players offering alternative solutions. Moreover, as stated at a recent Deloitte Center for Financial Services study, 66 percent of respondents said they would pay with an alternative instrument to a credit card if the merchant incentivized it with a similar rewards proposition.
Let’s take a look at features you can get by using modern billing systems:
- Peer to peer currency trading between one app users.
- Simplifying international processes to the situation where you can transfer money directly to the bank account.
- Saving money on processing fees by syncing your bank card with the payment system app.
- Giving employees more control over getting their salary by letting them define the amount earned each day and withdraw it whenever they want. The withdrawn sum is excluded from salary on a payday.
- Spreading out payments with 0% interest when shopping online allows customers to plan their purchases efficiently and increases the average order value of e-commerce companies by 30%.
- Scheduling your peer to peer payments over time. All both sides have to do is to agree on the payment plan. An app will automatically transfer money as scheduled.
- Accounts Receivable Automation
Does payment systems free of disadvantages?
Obviously, it would have been unfair to cover this topic one-sided mentioning only the advantages of payment systems.
No matter whether you are setting up a payment form or a shopping cart, it needs to be coded, secured and connected the right way. What happens if it is not done right?
According to the Nilson Report fraud losses worldwide are expected to grow up to $35.67 billion by 2023. Also, merchants and ATM operators incurred $8.64 billion of losses from fraud in 2018.
Of course, your business may not lose a significant sum because of cybercriminals but the client will remember your service didn’t care about his security which is ruining his client experience. The customer experience impacts more on clients’ decision making than price and product, as stated in the Walker study. It means experience your client gets by interacting with your business means more than the price they pay and the differences between your product and competitors’ ones. We start to see more and more cases of companies succeeding by putting more effort into their UX than others.
In the globalizing world, the competition is intense, and the experience your customers get matters. For instance, 13% of unsatisfied customers are likely to share with 15+ people how terrible was the service they got. So, by letting your site upset 100 people per year you lose 200 potential buyers. And when you lose one, somebody of your competitors gains one.
Check also: Financial technology. What does the future hold?
How to turn the payment system secureness into your advantage?
On the other hand, secureness can be a huge advantage of the payment system app. Especially, if other businesses don’t pay enough attention to it. Nowadays, customers are aware of some markers of a site’s safety. For example, getting an SSL certificate will prevent 82% of visitors from leaving your web page. By the way, it is a much more complicated task to connect the billing system with the site that isn’t SSL certificated. So this step means benefits for the business.
People tend to value companies that protect customers’ personal information. Accenture reveals that 85% of respondents claimed they are loyal to such careful brands. Moreover, 72% of happy clients are even willing to tell 6+ people about the positive and trustworthy experience. The numbers look good for a business owner who decides to build reliable long-term relations with their customers. We had a case of developing an e-commerce project that not only was secure but also communicated its secureness to the customer. It resulted in the retention rate increased by 15%
The second serious advantage is having a development partner. If you have already faced or you expect to face security issues in payment solutions, feel free to ask or browse our case studies.