Payment Trends Small Businesses Should Keep An Eye Out For Into 2023
For a small business to thrive in the digital age, it must stay competitive and up-to-date with the latest technologies. This means they have to optimize their operations to maximize profit from the resources they use. Such demand for heightened productivity is reflected in the growing popularity of data transformation, which helps businesses gain critical insights into different aspects of their operations by gathering and analyzing data. It is also reflected in other digital transformations essential for small businesses to retain a competitive edge.
With the biggest companies making transactions more accessible, customers are now looking to make payments with the greatest ease possible. For your small business to keep up, you should be aware of the latest innovations that are gaining traction in 2023. Here are a few you should keep an eye out for.
Contactless payment options provide significant advantages in providing both customers and staff with convenience and safety. Not only has it allowed people to shop from the comforts of their homes, but they also save them the hassle of having to withdraw money. Now, small businesses can enjoy this convenience and accept payments at their brick-and-mortar locations. They use modern card payment machines that accept both cards and contactless payment merchants like Apple Pay, Android Pay, and Samsung Pay. These machines enable you to accept payments from anywhere within your establishment, making it easier to integrate payments into your current payment infrastructure.
Buy now, pay later
Buy now, pay later (BNPL) is a type of short-term financing that lets customers make their purchase immediately and pay for it at a later date. It’s often interest-free, making it an increasingly popular payment option for consumers and retailers alike. For customers, BNPL often helps soften the blow on their wallets by allowing them to make payments in smaller increments. They are, therefore, more likely to complete transactions. In addition to facilitating an increase in sales, BNPL can also benefit businesses by allowing them to receive the full amount from a transaction at the time it’s initially made.
Buy online, pick up in-store (BOPIS)
Buy online, pick up in-store (BOPIS) lets customers browse and shop products from a retailer’s online store without having to pay delivery fees or wait for delivery time. This hassle-free mode of payment processing has given rise to the global BOPIS market, which is expected to grow at a rapid CAGR of 19.3% from 2021 to 2027. BOPIS is particularly beneficial for small businesses that own brick-and-mortar stores in this growing digital age. With customers dropping by stores in person to pick their purchases up, they may browse more items, meaning businesses could have a higher chance of sales. BOPIS also heightens efficiency, as online and offline inventory can be managed within the same framework.
Truly forward-thinking businesses are beginning to look at cryptocurrencies as an efficient payment mode that broadens consumer choices. The UK’s Ministry of Economy has recently announced its intentions to inaugurate several cryptocurrencies as legitimate payment forms. Some customers may favor making payments with their digital assets, as it allows them to benefit from their crypto earnings directly. Businesses can also benefit from crypto payments as they reduce transaction costs, simplify international transactions, and heightens security to avoid chargeback fraud.
The digital age has seen some of the most progressive payment methods to increase ease and efficiency for customers and businesses. If your small business is looking to keep pace with technology, these could be some helpful transaction methods you can consider offering.