Digital payment solutions offer small companies a way to gain a strategic advantage over larger competitors. Providing shoppers with options and the assurance of a third-party guarantee eases concerns over conducting business with a new brand. Digital payment platforms such as Square, PayPal, Stripe and Google shorten the sales cycle and provide valuable information companies can utilize to better market their products. The services provide users with options to use ACH funding or pay with a credit card of their choice. Here are some of the top benefits of integrating a digital payment solution into the sales cycle.
Improve Cash Flow
According to Bureau of Labor Statistics data between 1994 and 2023, around one in five businesses fail in their first year. The failure rates grow higher at the five-year mark and again at the 10-year point. A lack of cash flow is an often-cited reason for companies closing their doors.
Digital payment solutions help improve cash flow by putting money in the organization’s proverbial pocket faster. Many point of sale (POS) systems take weeks before the money hits an account. Sites such as PayPal and Square allow businesses to move funds daily. Depending on the bank, money could show up as soon as the next day or within a few business days.
Gaining access to money faster improves cash flow and gives a brand more liquidity to buy supplies while on sale or grow the company at a faster pace.
Reduce Friction During Checkout
Shopping cart abandonment is a problem for every online retailer. One way to lower these rates is by reducing the friction the buyer experiences during checkout. Checkout software offers years of refining and expertise in the e-commerce space. It can move a customer through the process without losing them in the interim.
People may feel unsure whether a website is safe or if they want to share personal details with a new brand. Integrating a payment gateway lets the buyer see a familiar name and feel more comfortable sharing data.
Tap Into the Power of Artificial Intelligence (AI)
AI automates monotonous tasks, freeing up salespeople’s time and resources for more growth. AI technology can be expensive, but even so, studies show that the average company sees a 250% return on investment in AI solutions.
Avoid losing the brightest and best people by solving problems sales leaders face, such as updating data and sending emails to leads who might never respond. This frees up the employee’s time for developing client relationships and finding new customers.
Improve Customer Experience (CX)
A smooth checkout process improves a website’s CX. The buyer won’t encounter coding issues or notice the website isn’t secure. They’ll see the security icon and recognize the name of the third-party payment gateway provider, effectively removing one worry from their minds.
With sites such as PayPal, the company steps in if there is a dispute. The buyer may feel more assured they’ll have protection if the place they ordered from doesn’t send the item, mails the wrong thing or the product malfunctions.
Enhance Security
Selling online brings additional security concerns. If customers are part of the European Union, the brand may have to follow General Data Regulation Protection (GDPR) Act rules. Ensuring systems are safe and data protected becomes crucial to avoid fines and retain customer confidence. The GDPR fines companies that fail to comply.
Experts predict cybercrime will cost around $10.5 trillion by 2025. Any company collecting payments and personal data could be at risk from hackers. Third-party payment solutions add another layer of protection. They do one thing, so they keep systems updated and watch for potential security threats.
Better security increases customer confidence and may push people through the sales cycle faster than those worried hackers might gain access to their credit card numbers.
Integrate With Loyalty Programs
Utilize loyalty programs to speak to the POS system. The provider tracks points and discounts and offers incentives when shoppers head to the checkout. Company employees can skip punching in special codes or adding discounts, as the process happens without added input.
Companies can tap into the power of AI with loyalty programs. Predictive analytics can look at what offer someone is most likely to respond to and send out the correct communication based on past buying behavior.
Reward points for purchases, sharing with others and referrals. The more engaged customers are with a brand, the higher their points grow.
Gain Access to Better Data
Companies can collect data from their online stores, but worries about its security may cause some buyers to leave areas blank. Payment gateways encrypt information and protect it from prying eyes.
PayPal has a 45.4% share of the payment gateway market in the United States, with Stripe at 18.2%. Dealing with massive amounts of money forces PayPal to stay on top of security. Payment processors tend to have security and encryption methods people trust, so customers are more likely to share sensitive details.
Reduce Chargebacks
Chargebacks and returns can eat into profits. Third-party digital payment software offers insight into what someone bought and when. They can go back into their account and see when they made the purchase and from whom.
Private POS systems are often cryptic on credit card statements. People may not recognize the charge and dispute it even though they ordered and received the item.
Why it’s Important to Shorten the Sales Cycle
Anything businesses can do to shorten the sales cycle improves the buyer’s journey and the likelihood they’ll complete the purchase. Utilizing a digital payment solution puts all the latest tools and technology in the hands of small companies.
Try integrating one into the checkout process and see if it reduces shopping cart abandonment rates. The benefits of more secure money collection methods and better analytics are worth the effort.
