Businesswoman making a payment on her phone.

6 ways your business can benefit from online payments

Whether you’re a giant enterprise or a small business, online payment solutions are essential for any business owner. Having an online payment system for your customers makes it much easier for them to purchase your products or services. So, why not get started?

What is an online payment platform?

Online payment platforms are taking over the shopping experience for both in-person and online shoppers. As of 2021, the global use of e-com payment methods (digital/mobile wallets) was up to 49% and is expected to increase to 53% by 2025.

Payment platforms simplify the shopping experience and make connecting multiple third parties and technologies easy. In short – payment platforms can offer more than one service, so merchants only have to deal with one company rather than multiple. 

Payments Canada's 2022 Canada Payment Methods and Trends report stated that more than 4 in 10 Canadians changed their payment processes to digital going forward. Businesses opting out of switching to digital run the risk of losing out on new customers and sales.

How do online payments work?

Online payments are made possible thanks to the payment gateway. A payment gateway is an invisible mechanism that processes and validates customer payments behind the scenes. With secure communication methods and tokenization, the payment gateway communicates between your online store and the bank. Once the client information has been validated and accepted, it’s debited from your customer’s account. 

Here are some essential ways online payments can benefit your business: 

1. Widens your customer base

One of the most significant benefits of online payments is the ability to reach a wider audience. The traditional brick-and-mortar route can only go so far. So, having online payments not only helps improve sales and revenue but expands your customer base.

2. Fast and secure payments

One of the most convincing reasons why small businesses should get an online payment platform is, so they can safely accept digital payments. While using cash and checks are still viable forms of payment, it’s a lot more manual and takes more time. This can also lead to fraud issues or miscalculations. 

Some online payment tools have OTP (one-time password) features where the customer gets a code and confirms the purchase was made. This ensures security for both small businesses and the client. Another essential feature is that payment processors verify identities and ensures there is a sufficient amount of funds before any transaction goes through.

3. Convenience for buyers & clients

One of the most significant advantages of online payments for customers is convenience. When you make the barrier to entry that much easier for your clients, the odds of them purchasing from your online store are much better. When shopping online, customers can browse many options (including those that aren’t in-store), check out other client reviews and pay for their items seamlessly. On top of that, customers can shop online at any hour of the day without being limited to working hours. 

Thanks to mobile phones, payment systems have evolved so much that customers can now purchase products even if they don’t have a physical wallet on hand.

4. Reduces operational costs

Online payment platforms accept payments and can help reduce operational costs for small business owners. A few of these ways include:

  • Fewer supplies (including paper)
  • Less labour costs
  • More data insights from customers – specifically purchasing behaviour

5. Data-driven decision-making

Once again, one of the many benefits of online payment platforms is that they provide business owners with insightful data points, allowing businesses to observe customer behaviour and make data-driven decisions based on it. 

Companies can learn more about their customers by looking at the following:

  • The type of device they used to purchase a good or service
  • Their preferred payment methods
  • The amount of time spent on their website and which specific landing pages

This information allows businesses to personalize experiences based on consumer behaviour and purchase history. For example, depending on your business website, you can recommend similar products or services based on your client's purchase. 

Collecting consumer information and data helps businesses: 

  • Personalize the shopping and paying options
  • Improve customer experience 
  • Implement dynamic product pricing

At the end of the day, knowing your consumers’ habits is better. With these insights, you can boost overall sales and revenue while making your clients happy. 

6. Authority and credibility 

One of the least obvious benefits of online payments is the opportunity for small businesses to build their brand and online authority. According to GE Capital Retail Bank’s second annual Major Purchase Report, 81% of shoppers will browse online before going into a physical store. If you have an online payment option, that only makes the process even more seamless. 

With online payment tools set in place, you also allow clients to purchase a product or service immediately. Being online provides your clients with instant gratification and more convenient service, which builds credibility for your business. On top of that, if your customers can communicate with you (whether it’s a LiveChat or e-mail) online during or after the shopping process, they will be more inclined to trust your brand and become a repeat customer.

How to accept online payments 

At Quickbooks, we make online payments that much easier. QuickBooks' Payment’s customers get time-saving auto-reconciliation, alerts on invoice updates and payment management all in one place. With the help of QuickBooks Payments, accounting just got a lot easier.

Learn about QuickBooks' streamlined payment platform and get in control of your business today. Join the millions of small business owners across the globe who have taken control of their finances.

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