More and more business are moving away from traditional payment methods, with most even refusing to accept older methods like cheques. With all the technology available in the modern era businesses are looking for quicker, safer and more economical payment methods that will cut them costs but still generate revenue. That is why there has been a rise in the popularity of electronic payments. An electronic payment is any kind of non-cash payment that doesn’t involve a paper check. There are a few different ways to make electronic payments the most common include credit cards, debit cards and the ACH (automated clearing house) network. The ACH system compromises direct deposit, direct debit and electronic checks.
Electronic payment methods are very convenient for the consumer as well as businesses. In most cases you only need to enter your account information such as your debit card number and shipping address and in most cases only once. The information can then be stored in the retailer’s database, ready for when you log in and make your next purchase. For businesses electronic payments are far more cost effective as the more payments that can be processed electronically, reduces the amount they have to spend on paper, printing and postage costs for the business.
As well as electronic payments cutting costs for business they help promote a healthy customer retention rate, as a customer is more likely to return to the same site where their details have already been entered and stored.
Electronic payments aren’t just beneficial for reducing costs through post and packaging but paying salaries, commissions and any one-off payments businesses need to make to anyone around the world. There are companies out there who offer accounts so businesses can send money globally in a quick and easy way. Online payments with PSI allow any businesses to send any money it needs to globally without the hassle of currency conversions, so if your company needs to refund a customer, make a payment, or simply pay salaries it can do so knowing that their money is safe and protected. If business choose to make online payments with PSI or any other companies offering online accounts they aren’t just guaranteed safe, quick and easy electronic payments but they save costs on materials, can obtain early payment discounts, cut costs that banks may charge, can reduce fraud as well as avoid making late payments and the late payment fees.
Although the majority of businesses have taken to making electronic payments to cut costs it also enables businesses to keep up with technology and the latest trends. As now not only can consumers shop and browse online but they can do so on the go with their mobiles. More and more businesses have taken to not just having websites but also having apps where customers can browse and make direct payments through their mobiles and tablet devices.
In 2012 UK customers collectively spent a grand total of around £6.5 billion with each person spending an average of £128 each online making an electronic payment. Electronic payments methods aren’t just popular with customers but with businesses too as more than 70 per cent of UK businesses have a website as well as an app, that accept a wide variety of different electronic payments.
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