Businesses generally think of the payment experience as another point of customer touch. However, technological changes have now proven that online payments offer a multitude of opportunities for businesses. This sector has experienced such a radical digital revolution that people no longer set foot in a bank. Most money transfers can now be done through apps and online platforms.
Today, businesses can easily collect their payments online through established banks. In recent months, we have seen many challenges facing B2B businesses due to the pandemic. The radical shift to digital tools and remote processes has exposed costly infrastructure gaps and inefficiencies in a financial system worth billions of euros.
Paper checks vs digital payments
Paper payments are a problem for the businesses and the customers they serve. Collecting and processing paper checks is extremely expensive for most businesses. Not only are paper payments expensive, they also take longer to process. In general, paper checks slow down the payment cycle and regularly cause delays. In addition, it makes businesses more vulnerable to fraud.
Accepting paper checks has become very complicated for businesses during the pandemic. On the other hand, online payment is very simple. These payment methods are generally safer, easier to collect and less expensive when you factor in the cost of issuing, sending, depositing and manually processing paper checks.
A more practical solution
Online payments, especially through banking networks, allow you to electronically transfer funds from your customer account directly to your business bank account. When you accept digital payments, you free up time, money and energy to grow your business. This allows your customers to make payments quickly and easily, while ensuring that your cash flow remains consistent and easy to predict. With online payments, you can process transactions faster, enabling instant cash application.
There are many industries that still rely primarily on paper checks for payments. By eliminating the ability to pay by check, these businesses can more efficiently manage their accounts receivable process, resulting in faster payment cycles and more efficient collections. With this solution, you can pay your bills from anywhere at any time. On the other hand, digital transactions are much more secure. Most platforms are highly regulated and secure. The other advantage of online payment is the ability to easily track transactions. Payment details are indeed stored in merchant-specific databases. This gives merchants easy access to payment information. This avoids any ambiguity and confusion when tracking payments.