For many merchants, changing their internal processes to allow multiple payment methods may seem like an unnecessary expense and an overly convoluted procedure. If your business operates profitably using tried and tested methods of cash and checks then there isn’t any need to complicate things, right?
Well, the simple answer is yes. New payment methods are not a fad or a briefly fashionable alternative. They are the future. Businesses that fail to offer several options will see their sales slump, their efficiency plummet and their growth take a nose dive. Here are the main things you need to know if your business is considering accepting some non-traditional payment methods. For those who can adapt, the advantages are numerous.
Investing in multiple payment options will result in an increased customer base, faster payment, simplified business operations and improved payment security. There really is no downside and the best news is that evolving your business to take advantage of multiple payment options is relatively convenient and hassle free.
Over the last few years, many companies have welcomed numerous alternative payment methods. And further expansion is highly anticipated. One example that has appeared recently is from mFortune, an online casino, which has developed the technology to deposit by phone bill. It enables clients who don’t want to use their credit or debit cards to make convenient and secure payments. This option allows players to make £3, £5 and £10 deposits by charging the deposit to their phone bill. Immediate credit with minimal fuss.
As you would expect, online casinos are at the forefront of developing multiple payment methods. There are a number of alternatives to cash and checks that are becoming ubiquitous now. Ensuring that these are available to their customers is becoming a priority for many companies.
Although mobile payments have been an established trend for the past five years, there is still huge potential growth as the smartphone market continues to swell.
It’s estimated that there will be more than 4.8billion individuals using a mobile phone by the end of this year. Industry experts have observed that more and more people are becoming comfortable making mobile payments.
We can expect to see the mobile payments industry evolve to meet the growing demands of these users. Google and Apple will be instrumental if mobile payments are to become the prevailing method of financial transactions for all. They may also come to be no longer entirely smartphone-dependent too. Instead, smart watches, bracelets and rings will also be equipped with payment options.
Near Field Communication
Near Field Communication (NFC) is the technology that allows two devices to ‘talk’ to each other when they are close together. It is closely related to mobile payments. NFC, however, goes beyond making payments using smartphones and you’ve probably used it before as there are also many credit and debit cards which contain NFC chips.
NFC payments enable customers to pay small amounts quickly and easily without requiring a PIN or signature. There are other payment methods, such as QR codes, but NFC is anticipated to win the war. Merchants should ensure they have an overview the latest technology required to accept these payments.
It’s still complex for some, but blockchain is becoming more mainstream. It involves the use of an infrastructure comprising of “blocks” of confirmed transactions that form a chronologically linked “chain”. As other digital currencies have developed, financial houses and some governments have begun to pay attention. The World Economic Forum predicts that, within a decade, 10% of global GDP could be stored on blockchains.
One advantage to blockchains are that transactions are both fast and cheap. Ideas for alternative uses of the blockchain technology are currently being developed too. Nothing in the world of tech is guaranteed, but it seems likely that blockchains will replace the trusted third party transactions that we’ve been reliant on in the past. Perhaps in a cost-effective and efficient way.
Cash and checks are on the retreat in society, alternative payment methods are advancing. Merchants who fail to realize this or grasp the technology too late will face a bleak future. Giant steps are currently being taken to simplify the way we work with our money. Future innovations are on the horizon and with them comes the opportunity to discover new ways of conducting transactions and securing the future of your business.