Convenience and comfort have become some of the most critical factors in our day-to-day life. From travelling to shopping for groceries, convenience has been the cornerstone of life for the past few years.
India has been considered a cash economy for decades, but this notion is slowly changing. In 2019, the country reported 22.42 cashless transactions per capita. This was a significant jump from the numbers over the past few years. With this number on the rise, businesses that enable themselves to accept cashless payments through gateways or payment links can expect to see a rise in their sales. What’s more, cashless payments may be the future of all payments in the coming decade. Hence, this makes it all the more important for businesses to adapt to cashless payment technology.
Reasons to opt for cashless payment systems
Super Convenient for the Customers
Customers are always looking for a convenient and time-saving experience. When a business can provide precisely this to its customers, it can increase the customer conversion rate by a massive margin.
A customer has to make an online payment that is only a few clicks away. The payment gets processed within a few minutes, and the whole purchase experience can be reduced to a straightforward form with minimal steps. Several online payment services provide the option to save payment details for future use, making recurring payments effortless for merchants. Payment gateways in India have become popular due to this very reason of comfort.
Multiple Payment Options
Several online payment solutions dominate the cashless payments industry. By opting for cashless payment systems, businesses attract more customers who have moved away from conventional forms of payment.
Popular payment options include credit & debit cards, UPI, net banking, mobile wallets, and services like Pay Later. Different customer segments prefer other payment options, and by catering to all their needs, the business can tap all of them. With a more extensive customer base, the business can also amplify its sales and revenues.
Bigger Geographical Coverage
Every business aims at expanding its customer base as much as possible. A cashless payment system transcends beyond geographical limits. A customer sitting in a different city hundreds of kilometres away can transact with a business that reaches the merchant within a few minutes. This would not be possible with traditional payment modes like cash or cheques. Payment gateways in India, like Zaakpay, empower businesses to reach out to customers spread across the entire Indian subcontinent.
Cashless payments are more secure for the customers as well as for the businesses. This is primarily due to the rise in the security standards of the payments systems. In the current scenario, most gateways and payment links are PCI DSS and SSL compliant.
It ensures that the customer’s information is appropriately encrypted before being transmitted to the payment processors. This advanced technology is also capable of tracking and keeping online frauds at bay. If the merchant notices something out-of-place with cashless technology, they can connect with the payment processing service to track it. This safeguards the business against incomplete, suspicious or fraudulent transactions.
Customers can now be seen shopping at any point in time. It can be during working hours or even well beyond midnight or early morning. With cashless solutions, the business is active round the clock and can accept orders and payments. This offers more convenience to the customers and increased sales to the businesses.
Better Cash Flow
Cash flow is pertinent for businesses to invest on the required grounds. It also helps in managing the business resources effectively. With regular cash flow, merchants have an exact idea of the cash available at hand at all time points. Since most payment gateways in India have a quick payout policy, cash flow becomes instantaneous with online payment services. Merchants have to hardly wait before they can cash out the money accumulated in the payment service. In the case of traditional payments, cash flow gets delayed, sometimes up to two or three weeks.
Accounting Accuracy and Efficiency
Accurate accounting is crucial to the proper management of the business. Manual accounting becomes more complicated as the business scales up. The scope of errors also increases proportionately. This can also become a hassle when payment modes like cash and cheques are involved. This is because they take time to be credited into the business account. This process can be streamlined further and made more manageable with cashless payments.
Firstly, it generates automatic statements. Secondly, the time taken for such transactions to be credited is almost instantaneous. This doesn’t create any accounting delay. Some processes enable connecting the gateway system to an accounting or management software, eliminating manual entries.
The statements generated from the gateway systems can also be analyzed to study the purchase trend. Merchants can use the inference to boost their sales further. For example, from the analysis, merchants can find out when customers shop the most and can launch marketing campaigns or discounts to encourage more sales.
Cashless payment technologies are the future of the payments industry. Businesses would eventually have to adapt to it sooner or later. However, businesses that make a move now can enjoy a competitive edge over others. Zaakpay gateway and payment links service provide all the necessary features for businesses of all types and sizes to get started with cashless payments in just a few days.