Advantages and Challenges of Accepting Online Payments

Accepting payment is part and parcel of any transaction. You do any business, and there will be requirements for making and accepting payments. With the evolution of digital platforms and the current need to live away from each other, more people and businesses depend upon online transactions. Online payment methods have their own set of advantages and challenges, which we should know for a safe and secure business and personal transaction.

In comparison with advantages, disadvantages are not significant, so we will deal with the advantages and challenges of using online mediums to accept payments in this passage.

8 Advantages of accepting online payments

1. Borderless market reach

Online payment facilitates a global reach. A business can make and receive payment from anywhere globally that too in a faster, smoother, and safer medium. Your business can expand without any border limitation.

The whole world becomes a market and opens for online mediums of transaction. As per a recent survey, about fifty-six per cent of online shopping happens across from the border. Acceptance of online payments increases business options and eventually more sales & revenue.

2. Cost-efficient methods

The traditional mode of payment needs infrastructure, workforce, and office space. It needs investment and physical presence. There remain other limitations related to cashier's performance, cash, etc.

Digital mediums provide easy ways to accept online payments and prove to be cost-efficient in the process. Companies do not require infrastructure and human resources to facilitate online payments. You can easily manage payments through bahi khata app such as OkCredit, and these apps help make the system automated and organised for hassle-free payment receiving.

3. Safe and secure transaction

With rapid advancements in the online mode of accepting payments and making payments, banks and financial institutes secure their system and data with double verification, the latest software, and prompt action upon any suspicious activities on the account.

Online mode of payment is way more secure than the traditional way of receiving payment. Traditional methods include risk of theft, cash-related problems, and bounce cheques, etc.

With an online facility, businesses can ensure a faster, reliable, and authentic process of payment. Another noteworthy feature to improve security is payment online takes two to three days before reflecting in the account. This gives ample time to check and verify the correct transaction as well as details.

This measure to keep the transaction safe helps in operational management faster and better.

4. Multiple options for customers

There are dozens of mediums to pay online, making the customer's journey comfortable and easy. Customers have access to any market on the globe from anywhere and at any time. Make your customers aware of how to accept online payments.

Today's customers are accustomed to online shopping, instant booking confirmation, home delivery, customised order, and smooth payment procedure. Companies improvise their services from time to time to better experience their site and maximum conversions on customer visits.

5. Extensive range of payment options

The online medium offers innumerable options to make and accept payments. Your business can automate payment procedures through khata bahi apps such as OkCredit and enjoy seamless payments anytime. You can also do staff management through their customised services such as OkStaff and others.

Some of India's acceptable online payment methods are debit cards, credit cards, e-wallets such as Paytm, G-Pay, Bhim App, internet banking, gift cards, and many more. In some countries, instalment cards are quite a popular online payment mode, such as Turkey, Brazil, and others.

6. Opening new marketing channels

Affiliate marketing and influential marketing are two channels that are directly linked with your ability to make online transactions.

In affiliate marketing, a third-person sells your products and services on their website. The website owner uses their blog, social media channels to promote your product.

An influential marketing channel is something where your product or service is mentioned or written about by some popular personality.

These channels increase sales and revenue by up to twenty-eight per cent, as per a recently published story in a leading business magazine.

7. Impulse buyer behaviour

There is a category of shoppers who likes to buy things on the go or first impression. Either they are too busy or too impatient, whatever may be the case, your business should have options for such impulse shoppers.

Give multiple options to shop online as well as faster payment on the store. All e-wallet companies offer QR-codes to scan and pay, banks offer wave and pay; keep all the options open and available.

Payment gateways are essential to do business these days and for serving the young, impatient generation.

8. Automation in payment

Payments for subscriptions, EMI for credit cards & loans, etc., are continuous processes. For subscriptions, several companies allow the automation method. They ask for permission from subscribers and deduct the amount at the end of every month or year as per the subscription period.

E-wallets provide reminders and automate the process of EMIs. Online mediums allow this recurring feature of payments, making account management, payment management much easier and comfortable.

Shopkeepers and businesses can use online payment apps' automation features to organise bills and keep them on a reminder. It helps in on-time payments hassle-free and exact. With properly managed books, sales increase, and business grows.

As said earlier, every idea comes with newer challenges so does the online mode of accepting payments.

Significant challenges with online payments

1. Technical aspects

Online modes of payment are structured on technology. Anything related to technology is bound to have some risk of technical problems. These problems include server error, slow processing, too much time to load the page, and many other probable glitches.

Most companies hire tech experts to look into these issues and maintain the system for smooth working to handle such technical problems. This is an operational problem and nothing to worry about for accepting online payments.

Some of the common technical glitches faced by customers online:

• Too slow page loading
• Sudden closure of the page
• Server error
• Unable to complete payment and frequent failure of payments
• Unable to add details of cards, address, etc

2. Scams and fraud

One of the greatest challenges for businesses and governments globally is to handle online scams and frauds. Cyber-related frauds could cost around 1 trillion dollars to the world economy in 2021, and attacks were increased further in the time of corona-led work from home culture.

We enter bank details, personal information, location, and other important information online; this information can be maliciously used to access our system, account and hack them. Black hat hackers are experts in technical knowledge and attack through several means, including phishing, trojan, virus, etc.

Governments, institutions, and companies make several efforts to improvise the security system with better software and layered authentication processes.

Conclusion

Online payments are the most secure, verified mode of transactions for the business. Though it has some challenges, such as probable technical glitches and cyber-attacks, institutes and governments are well equipped to handle all these attacks.

Some of the best methods for authentication and verification are the use of biometrics, 3D protocols, double verification, etc. Government and businesses keep a team of white hackers who monitor all the activities to stop and rectify any attempt to hack the system.

As a business owner, you should not be worried about the safety of the data because online payments are way safer and secure than traditional modes of payment. We should consider its great advantages with an eye for managing its challenges smartly for a fantastic customer experience.

Also read:

1) E-Commerce Tools Every Small Business Needs
2) The Rise of Ecommerce over the years
3) E-commerce Business Ideas: What Should You Sell?
4) E-Commerce Customer Service – 10 Best Practices [guide]

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FAQs

Q. Is accepting online payments safe?

Ans. Online payments are secured with the world's best software and authentication process. Anyone can use online modes for safe & secure transactions.

Q. What are the safer ways to do an online transaction?

Ans. Always use your system or laptop, or mobile device for making online payments.

Q. Do we need to make huge investments for payment gateways and related infrastructure?

Ans. No, most gateways offer payment services at a very cost-effective rate. You would not feel the extra burden of making the required infrastructure for accepting online payments.