Over the past five years, there has been a sharp spike in online payments, majorly led by demonetization, the need to reduce India’s reliance on cash transactions, and the push for a ‘Digital India.’ The COVID-19 pandemic added to this urgency of adopting online payments, making them the need of the hour. With the smartphone user base expanding every year, online payments may become inevitable in the future. Simply put, most potential consumers are rapidly shifting to online shopping. Thus, this makes it a cue for merchants to move their payment collection process online to stay relevant.
The need for businesses to adopt online payment modes is profound, with a massive chunk of customers choosing to pay via digital mediums. But what makes having online payment modes a necessity for businesses in 2021?
Here is a detailed explanation of why your business should collect payments online.
1. Faster payment collections
An online payment transaction takes about 3 seconds to complete. Gone are the days when for every time that money had to exchange hands, a business entity would have to face long delays and hundreds of logistical challenges. Payment transactions can be completed instantly with the advent of payment gateways and some of the best online payment strategies. Merchants no longer need to wait weeks to deposit the funds in their bank account; payments are directly routed to the business account without any manual intervention.
2. Reduced costs
In the traditional business setup, where the customer must pay with “cash on delivery,” the business faced endless challenges from the logistical costs and bank charges for massive deposits to hiring a team to manage and supervise the payment collection process. Not to mention, the process becomes even more expensive with cheque and DD deposits.
With online payment collection, overhead costs reduce drastically, making the shift to digital transactions worthwhile. Payment gateways like Zaakpay make the process of online payment collection more cost-effective with no setup or maintenance charges!
3. Secure transactions
The risk of fraud has traditionally affected all financial transactions – both for the customer and the merchant. All online payment collections are authorized, verified, and instantaneous. They go through several security checks like SSL encryption and tokenization to protect the user’s payment information. In addition to this, payment gateways are PCI DSS compliant and ensure that no cyber threats or frauds hamper the online payment experience. The best online payment gateways in India offer high security and encryption protection to all transactions made via them, enabling the buyers to feel reassured about the safety of their money.
4. Enhanced customer user experience
Online payment gateways offer fantastic features that make a business appear more attractive to the consumer. Zaakpay, for example, offers express and customized check-out experience, secure payment data storage, and 100+ different modes of online payment collection – all in a lightweight software package, ready to be installed. Exclusive features like automated payments make the process effortless for the user, turning them into loyal customers. Features like these will help businesses set themselves apart and boost the customer checkout experience when paying online.
5. Offers multiple payment modes.
A lot of different options for online payment collection are available in the market today. In an era where every customer has their preferred payment mode, offering just 1-2 conventional payment methods can affect sales. For example, a credit card user might drop the transaction mid-way if compelled to pay using net banking only. Similarly, a user inclined to pay via the mobile wallet’s balance may abandon the transaction if asked to pay via cards. The best online payment gateway successfully directs customers towards completing transactions by offering a variety of payment modes.
6. Quick integration
Most online payment collection methods come with convenient integration systems and plug-ins that will enable you to onboard them swiftly, within the framework of your existing website or application. Some of them even come with pre-built plugins and require no coding for integration. Payment gateway providers like Zaakpay offer 24×7 support for gateway integration with a team of technical experts.
7. Collects payments Pan-India
With a payment gateway in place, collecting payments online at any time, anywhere, becomes super easy. Time, geography, and distance are no longer barriers to monetary transactions. Thus, merchants can accept payments from any corner of the country without any hassle.
8. Opportunity to gain a competitive edge
Business entities that collect payments online can get a competitive edge since payment gateways give them access to a broader customer base that their peers may not yet have access to. As a company, businesses are far better placed to capitalize on India’s growing digital market if they digitize their payment process- a space that includes 700 million+ smartphone and internet users.
9. Recurring payments
Some best online payment gateways in India offer the feature of recurring payments. This makes payment of monthly dues like bills, subscriptions, and loan repayments far more convenient for the user. Businesses can also send out advance reminders to the customers to make the upcoming payment to avoid late fees and penalty charges. On the other hand, the customers can also save their online payment information in the gateway and pay with a single tap in the future without having to re-enter their payment details every time.
10. Reduced cart abandonment
Data suggests that over 40% of consumers abandon their online carts without completing the payment transaction. A manual and relatively long payment process was one of the most important reasons for this. With the online payment process taking a few seconds, businesses can decrease their cart abandonment rate and increase their sales.
Conclusion
Staying relevant in a rapidly changing world is a challenge that traditional business entities must overcome to survive. With the advent of online payment collection systems like payment links, payment gateways, contactless cards, and the like, a brick-and-mortar store that relies solely on cash transactions will have to shut shop if it fails to cater to a dynamic consumer base.
The introduction of online payment collection systems, payment gateways, digital wallets, and the like has immensely increased the ease of doing business. To get a piece of the “Digital India” pie, your business needs to start collecting online payment today!
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