How Digital Payments Are Changing Businesses Worldwide
One of the biggest technological trends of the past decade has been the adoption of digital payment solutions. These solutions go far beyond credit cards and online bank transfers. They include mobile wallets like PayPal, peer-to-peer platforms like Venmo, and even the ever-expanding collection of cryptocurrencies. While these solutions have undoubtedly made things more convenient for consumers, they’ve also been a game-changer for businesses on a global scale. Let’s look at how the adoption of digital payments has changed businesses worldwide.
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Transactional Speed
Every business owner understands that time is money. With digital payments, purchases can be processed much faster and with a lot less friction. Brick-and-mortar stores don’t need to have employees giving customers change for cash purchases, which can slow down the checkout line and drive away customers who don’t want to wait. Even for eCommerce businesses, digital payments allow for smooth transactions that help companies to process orders faster, which helps keep customers happy.
Emerging Industries
There are several industries that have experienced massive growth over the last decade, in part because digital payments have helped them grow. Online casinos and other gaming platforms are the perfect example of this. Nowadays, many online casinos that accept PayPal, open up those platforms to customers who may not have credit cards or other forms of payment to use. Younger demographics, in particular, use mobile wallets such as PayPal and other digital payment solutions exclusively. By promoting digital payments, online casinos and similar industries have expanded their reach and grown exponentially.
Security
Of course, the emergence of digital platforms quickly led to concerns about security and privacy with these payment systems. However, the top digital payment systems have answered the call and built cybersecurity provisions into these platforms. Most digital platforms have two-factor authentication when users access their accounts. They also utilize encryption and have fraud detection in place to alert customers of unusual activity. Since digital payment solutions can maintain the security of users’ funds and personal information, businesses that accept them can provide customers with a secure experience, which builds trust and helps promote customer loyalty.
Record-Keeping
While often overlooked, record-keeping is a big part of businesses staying organized. Part of the benefit of digital payment solutions is that they automatically track all transactions, meaning sales don’t need to be manually logged. Needless to say, this helps businesses save time and money. Plus, since sales are recorded automatically, they create a treasure trove of data for businesses to analyze. Businesses are better able to identify trends and other insights that can help inform decisions that will improve the business in the long run.
Global Reach
Perhaps the most impactful part of digital payment solutions is that they can cross international borders and level the playing field. Online businesses can use digital platforms to process payments from customers from all over the world. Mobile wallets and peer-to-peer payment platforms are able to override language barriers and handle currency changes in ways that weren’t possible 10 or more years ago. This has allowed businesses to expand into new markets and reach customers from all over the world. As a result, any business, regardless of its size or location, can become a global entity.
Shrinking the Supply Chain
Few things can slow down a business like a disruption in the supply chain. Many businesses learned this the hard way during the COVID-19 pandemic. While digital payment platforms can’t prevent every supply chain disruption, they can help create shortcuts that help to speed things along. Businesses that operate with digital payments can reduce friction in the supply chain by processing transactions quickly, enabling real-time payments and eliminating delays. This makes the entire supply chain that much more efficient, which benefits businesses across industries.
Small Business Inclusion
The biggest overall change in the business world from the advent of digital payment solutions is that small businesses have a better chance of succeeding. By accepting digital payments from consumers and using digital payments in the supply chain, small businesses receive all of the same benefits of the digital payment revolution as major corporations. They can offer fast and secure transactions just like big businesses. They can improve their record-keeping and create shortcuts in the supply chain, improving their efficiency like larger businesses. Likewise, even small businesses can expand their reach and serve a global customer base, making them truly included in the global economy.
