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Why Your Business Needs to Embrace Digital Payments Now

Small businesses still haven’t fully embraced digital payments. Many businesses still prefer to accept cash and check, and others are cash-only altogether. You may think that this is saving your company money on payment processing, but avoiding digital payments is actually hurting your business.

There are several direct and indirect costs associated with accepting and process cash, including time spent accepting it and giving change, counting and recounting the cash, and balancing the till. The cash then has to be physically taken to the bank and deposited. In the meantime, you must invest in a security system and possibly extra personnel to keep the cash safe at your business, and then you have to cover the cost of loss, either by employee error or theft. All of this is also employee time spent dealing with cash and not helping your customers and taking care of other higher level responsibilities.

Sticking to cash also inhibits you from collecting on higher-value transactions. Few people carry cash on them nowadays and rarely enough for large purchases because it is dangerous to carry a lot of cash. Accepting digital payment allows your business to break free of the low-transaction-value slump. It can also increase cash flow by broadening your market. Depending on your business, with digital payments your business can go online and sell products and services to consumers across the country and the world (without physically exchanging currency). 

There’s not much to say if you’re still accepting checks. The check is the most unreliable payment method that still exists. Checks bounce and it is not guaranteed that you will receive money, and it takes days for the payment to transfer and clear. Still, there are many businesses, and oddly the Chicago Public Library, that prefer checks over quick and secure digital payments. 

The mistake entrepreneurs and CEOs often make is getting hung up on the cost associated with processing digital payments. In addition to the time, manpower, and sales potential that you lose to cash and check payments, outdated payments slow down the entire business. Businesses can increase revenue and the number of customers serviced each hour and minute by adopting electronic payments. The actual process of accepting the payment is quicker and supports quick transactions, making room for the next customer to pay and go. Digital payments also promote efficiency in financial reporting and monitoring because payment processing software is constantly evolving and creating fully integrated solutions. 

Weigh the pros and cons of electronic payment processing for your business, but be sure to look beyond the initial numbers. Consider the opportunity cost of refusing to invest in your company’s future in an evolving technological landscape.

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