How Can Electronic Payments Benefit Your Business?

Did you know that the eCommerce industry in India is predicted to reach $350 billion by 2030? eCommerce has transformed the way businesses work. And it has much to do with electronic payments. It doesn’t matter what the size, nature, or scope of your business is; electronic payments hold the key to success. 

Businesses with no website or online presence can significantly benefit from electronic payments. Curious about how? Read on to find out.

What are electronic payments?

As the name suggests, electronic payments refer to making or receiving payments electronically, such as through a credit/debit card, UPI, internet banking, an online payment gateway, etc. The most common e-payments are card payments, bank transfers, virtual card payments, and FX payments. 

Benefits of electronic payments for your business

Wider reach

The number of internet connections in India reached 830 million in 2021. And it is only going to continue rising. More and more customers are switching to online payments, even in physical stores, due to their convenience and security. Electronic payments allow your business to reach more customers both online and offline. 

Increased revenue and sales

Enabling electronic payments enables you to reach more customers and, in turn, boost your sales. Most customers prefer online shopping as it offers greater convenience and more options. The option to choose from multiple online payment methods makes it more likely to complete their purchase. Another advantage of e-payments is collecting data on customers’ buying preferences and offering personalized discounts and coupons. 

Security

When eCommerce first became popular, the biggest concern was the security of payments. However, it quickly won over that fear with stringent payment security measures. Security protocols, such as encryption and SSL, protect customers’ funds. Customers no longer have to worry about carrying cash everywhere and fear it getting stolen or misplaced, as most offline businesses also offer secure e-payments.

Reduced costs

Businesses significantly reduce their costs by accepting e-payments. Since the entire process happens online, there is no requirement for physical invoices or paper-based payments. Payments through cheques can be expensive and take more time to process. Reduce the need for human resources as fewer employees are required to handle the payments. 

Productivity 

Electronic payments enable businesses to automate manual tasks, such as data entry, maintaining records, processing cheques, etc. Increase productivity and eliminates the possibility of manual errors and duplication. Employees also get to focus their time and efforts on more challenging areas.

Challenges of electronic payments

Electronic payments have their fair share of challenges. The biggest one is the possibility of fraud and shopping cart abandonment. However, with technological advancement, fraud detection solutions are getting better at detecting and preventing fraud. Similarly, you can manage cart abandonment by providing clear policies and easy checkout processes. 

Ecommerce is the present and future, and electronic payments are a crucial part of it. Electronic payments provide several benefits to businesses and customers. You might face some challenges when adopting payment e-commerce, but its benefits will substantially outweigh the cost in the long run.