As the global payment system expands and businesses implement more and more revenue streams, today’s customer expectations and behavior consequently adjust. As per McKinsey reports, cash usage worldwide dropped by around 4% in 2022, and the trend continues, with tactile greenbacks, bucks, and so on, being increasingly neglected by users. The rising cashless trend doesn’t only mean that businesses must familiarize themselves with the thought of less cash coming or that they should sit complacent with their credit and debit payment methods offered to their public. Suppose a venture looks to expand to new markets, unlock new buyer categories, or even be prepared for the digital money area that’s slowly but surely approaching. In that case, their acknowledgment should be reflected in their actions.
Future-looking businesses adopt all sorts of technologies, including artificial intelligence (AI) and machine learning (ML), as well as varied payment methods, with BNPL and cryptos ranking among the most common approaches. Lately, the expansion of crypto has radically influenced global finance, as seen in the ever-rising Ethereum prediction, and its effect has begun to trickle down to the smallest of businesses. But enough with the spoilers! Let’s discover the online or digital methods today’s customers expect from future-oriented companies, how to implement them, and a few extra insights.
Cryptocurrency
A rising number of companies globally employ cryptocurrencies like Bitcoin, Ethereum, and so on for various purposes, including transactions, operations, and investments. Around 2,352 businesses in the U.S. took Bitcoin in exchange for their services, as outlined by a 2022 Deloitte study, which, by the way, excludes Bitcoin ATMs. Evidently, Merchants turn to crypto payments in the hopes that the trend will keep spreading and they’ll secure a competitive advantage in today’s overcrowded markets. And understandably, such an innovation may turn out more profitable than not.
Massive brands are facilitating customer payments in crypto to buy anything, from online subscriptions to restaurant meals to accommodation bookings. Here are three essential tips to know before you select your crypto payment processor:
- Compare different perks from many crypto payment processors, including security measures, tech tools, user-friendliness, range of currencies supported, and transaction fee structures.
- Keep buyers posted on the cryptos you accept, be it through invoices, e-mails, or at the checkout.
- Get to grips with cryptocurrency’s volatility, or one of the most important factors to crypto that can bring risks or profits. Prices can climb or drop in an instant and without notice and there are a few risks associated with the sector, such as cyber-attacks and scams. Do your due diligence and pick wisely!
BNPL
The latest novelties in FinTech, short for financial technology, have given way to short-term financing solutions for buyer loans, helping consumers buy their desired product or service and pay for it at a later term. This model doesn’t involve any interest and is generally known as Buy Now, Pay Later (BNPL).
The provision of these services by online retailers is increasing, yet the effects on purchaser spending habits remain vague. According to Science Direct studies, customers making BNPL payments tend to increase their online spending by 6.42%. Wouldn’t you want your audience to feel more encouraged and advantaged to the point where your customer retention rates and sales rise?
Adopting BNPL may help improve sales and the average order value, boost the cash flow and customer satisfaction, and decrease cart and contract abandonment. Here’s what you should consider before you decide you should offer your buyers flexible, interest-free installment alternatives:
- Collaborate with a service and BNPL provider that aligns with your business model, target audience, and core objectives.
- Provide and implement a BNPL option with your business checkout and other payment solutions.
- Control installment payments and establish automated withdrawals and systems for managing possible late fees or nonpayments.
Digital wallets
There’s been plenty of talk surrounding digital wallets and their usefulness in the corporate realm, leading us to finally conclude that embracing this software-based payment method is more than introducing a new payment technology. E-wallets are a service for conducting convenient contactless payments, yet they’re about more than mere ease of use.
Such a payment method may be a game-changer in improving your buyers’ checkout experience as it streamlines the payment process to just a scan or tap, taking a load off your customers’ shoulders as they won’t have to handle cash or plastic cards. Moreover, you can improve your company’s cash flow by expediting your transaction process. The solid security framework accessed means you can easily and cheaply overcome risks like fraud.
This being said, let’s enumerate the main steps to introducing digital wallets to the payment method range:
- Support some of the most popular wallets, such as Samsung, Google, and Apple Pay, to access as large a customer category as possible.
- Ensure your checkout system’s reader processes contactless payments by getting a POS compatible with your equipment and software.
- Market the innovative digital wallet payment opportunity at some point during checkout to boost buyer awareness.
Perks adaptive businesses look to
Businesses expect some benefits after diversifying their payment system’s revenue streams. With the rising complexity of the payment industry, meeting buyers’ expectations and needs eventually boils down to permitting them to pay in the ways that best suit them, be it via crypto, BNPL, or Google Pay, to name a few.
Here’s what most businesses expand their set of payments for:
- Consumers have various limitations and preferences when it comes to payments. Thus, by meeting their requirements, enterprises cater to more needs, improve their consumers’ payment convenience, and secure a competitive advantage.
- Taking more payments can enhance conversion rates since prospective buyers are more determined to submit and pay for the products in their basket.
- Providing various payment alternatives speaks volumes about businesses, showing that they are inclusive, customer-oriented, and appreciative of their clients’ loyalty.
- Various demographic categories can opt for diverse payment options. For example, Gen Z may prefer peer-to-peer apps or digital wallets, while millennials could favor bank transfers or credit cards.
Last line
Businesses looking to cater to a wider range of customers, expand internationally, stay updated with the latest trends, and meet regulatory obligations in specific regions or industries may find the payment methods outlined above a must. Evidently, the reasons why you should consider implementing one (or some) of them go beyond these.
So, when and why would you look to expand your payment strategy’s revenue streams?
