Future Payment Methods for Ecommerce and Their Pros and Cons
There are many payment arrangements that a business owner can consider for their electronic or internet commerce (eCommerce) business; in fact, he can choose to use every payment method there is in the world.
While payment arrangements are rife with options at present, it is best to first take a good look at the pros and cons of each trending payment options:
1. Closed eWallet
eWallet is one type of payment option for e-commerce that can safely protect customer information.
Money can be transferred to eWallet through bank transfer instantly. This is a hassle-free payment method for customers since they will not experience the difficulty of completing payment information yet again on their next purchase as it is already safely stored in the system. It prevents the customer from being frustrated in filling out too much information.
Business owners can use eWallet for marketing purposes. For instance, entrepreneurs can think of attractive promotions to entice customers to sign up for eWallet. Such promotions may include but not be limited to offering discounts, reward points and giveaways that can only be granted to eWallet users. This will lead to businesses gaining more because the promos will lure the customers into buying as much as they want.
While eWallet provides comfort to shoppers, there can be some disadvantages for business owners. Developing eWallet requires a huge amount of money as it is necessary for the company to fix bugs and install, update and maintain the app. Apart from that, businesses must ensure that sensitive and personal information of customers, such as names and card numbers are not accessible to third-parties whose intention is to use these important details for monkey business.
Brick-and-mortar store is to e-business while traditional money is to digital money. It is simple as that. Cryptocurrency is not the same as the paper bills and coins that people can hold. Rather, it is digital cash that can be used for purchasing items and availing services online.
Today, investing in stocks through cryptocurrency has been a trend. Bitcoin is the most popular kind of cryptocurrency.
It uses algorithms and codes to keep online payment transactions secure, making it a preferred payment option for young and affluent customers. On top of that, providing personal details is not essential in completing the transaction because every money transfer is recorded in its blockchain or digital ledger. Aside from that, contrary to credit card payment, cryptocurrency has low transaction fees.
Businesses acceptance of cryptocurrency payments eliminates charge-backs which are billed by credit card issuers to them for any financial harm due to unauthorized transactions.
On the other hand, cryptocurrency is not regulated by federal governments; as such, although the cybersecurity measures are enhanced, there might still be inevitable risks that will be associated with using this particular type of payment method.
3. Direct Carrier Payment
Purchases can be directly billed to shoppers either through their mobile/ smartphone or utility carrier which has the user’s information. It is another convenient online payment option with the use of a mobile phone for consumers, for it eliminates re-entering personal details. For someone who fears that an intruder is snooping on their personal information, direct billing is the best option.
As what was mentioned, this payment option is hassle free; therefore, consumers are inclined to add whatever product they desire to buy to their online shopping carts due to the one-click-payment option. This action will result in greater profit, and more conversions for businesses and consequently diminish instances of items being pulled out or stuck in the cart and purchases not pushing through.
Direct carrier payment opens more possibilities especially if the business is covering a wide range of products and services. It is also beneficial to buyers who do not have a debit or credit card but are still interested to shop for what they need online.
On the contrary, huge fees are charged to the merchant after every payment transaction. One way to limit excessive fees is by securing a good deal with service carriers to prevent profit loss.
The future is beginning to unfold. Business transactions are changing rapidly at the present time. Business owners need to be quick to embrace advancements in payment systems and online transactions in order to maintain traction in the midst of drastically changing industry demands.
The closed eWallet, cryptocurrency, and direct carrier billing are some payment methods that are recommended to avoid problems in the coming years. Carefully assess which payment method best suits the business and the target customers. Ensure that integrating a particular form of advanced payment method is accomplished smoothly and securely to increase customer satisfaction.
What other payment methods do you think would benefit modern-day businesses? For more helpful tips and blogs like this one, head to our website.
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