From business owners to consumers, the way society is choosing to spend and manage money has contributed to a financial revolution.
Automation has paved the way for a number of different payment methods. This has enabled business owners to increase their customer reach while providing consumers with greater financial control.
Find out more about how payments are changing and how you can utilise these methods to increase your cash flow.
A cashless society
By and large, the amount of cash being carried around the world has dwindled. The US and Sweden have embraced the use of plastic and digital payments, where more than 80% of payments are cashless1,2. In Australia, more than half of the population is opting to use cashless payments3. While cash use continues to decline, the way we pay has moved into the digital sphere.
Online transfers have fast become the preferred payment method among friends, family and colleagues in social situations – and the faster it can go from one account to another, the better. The introduction of instant bank transfer services such as PayID and Osko have enabled uses to both send and receive money instantly via mobile banking. Keeping transfers fast and safe, instant bank transfers have removed the dated notion of pending payments.
When it comes to in-store shopping, digital wallets have streamlined the purchasing process. Providing a convenient transaction method for shoppers, this simple tap-and-go payment method removes the need to carry both cash and cards. Introducing greater potential revenue and opportunities for growth, many business owners have welcomed the use of digital wallets, replacing the need for expensive point of sale systems.
Greater security and customer control
More than ever, customers invested in digital payments are looking for greater control of both their finances and personal information. Digital security has become paramount for online consumers, coupled with the rising threat of cyber attacks.
When making the choice to purchase, customers are becoming more vested in the security of business websites before handing over personal information. Driven by demand, businesses have in turn adapted their payment methods by enforcing and adhering to higher measures of security.
Being accredited with higher security measures, businesses can ensure the financial and personal information of customers are kept safe and secure, along with any sensitive business information.
From fitness memberships through to childcare payments, the option to add payment automation into a business model has transformed the way in which businesses form long-term relationships with customers. This has proven to increase consistent revenue for businesses around the world. Changing from the traditional payment methods of direct debit, payment automation is undertaken via an agreement made between customers and businesses.
By having a set amount of money taken out of a customer’s bank account and transferred into a business account at set weekly or monthly intervals, both parties retain greater financial control. Business owners have significantly boosted cash-flow while cutting costs associated with administration, with consumers retaining control of their budget.
The future of payments will continue to change and for successful business owners, staying on top of the latest trends is essential. Offering your customers multiple payment methods can help grow your business and retain your customers.
Learn the current payment landscape for 2019 in our free guide, Understanding the Changing Payments Landscape.