In the past, there was only one payment type a business needed to accept and that was cash.
Cash operations can have several downsides, including but not limited to:
Security Risks – Handling and storing large amounts of cash can expose a business to security risks such as theft, burglary, and internal fraud.
Risk of Errors – Counting and handling cash increases the risk of errors in financial transactions, potentially affecting business finances and customer satisfaction.
Limited Payment Options – Relying on cash may limit a business’s ability to accept various payment options preferred by customers, such as credit cards or digital wallets.
Luckily for the modern business owner, we have other payment types such as contactless payments and wire transfers, but there are some questions that need answered, such as: Which one is right for me? And what are the pros and cons of using these methods? These will be answered.
In today’s fast-paced world of finance, contactless payments have become a game-changer. This payment method encompasses card payments and the use of mobile apps and digital wallets via smartphones, bracelets, watches, or any NFC-enabled device. Notably, payments through verified wallets like Apple Pay and Google Pay have taken centre stage, offering unmatched convenience and security through tokenization. Tokenization refers to the security mechanism that helps protect your contactless payments from people with malicious intent with your banking details.
The degree of contactless payment options available to the customer may vary by region. In Eastern Europe, businesses often need to accept both cash and electronic payments to accommodate a diverse customer base, as many people rely on cash for part of their daily transactions.
However, it’s crucial for businesses to recognise that the landscape is rapidly evolving. Cash transactions are gradually declining, and the adoption of digital payment methods is accelerating. To stay ahead in the game, businesses need to proactively plan for this transition now. Embracing electronic payments, mobile wallets, and contactless transactions is not just about catering to current customer preferences, but also about future-proofing your business in an increasingly cashless world. By taking these steps today, businesses can ensure they remain competitive and meet the changing demands of their customer base.
While wire transfers are a convenient choice for businesses, particularly in supplier transactions and B2B payments, they are not meant for the regular customer, as they typically involve several steps and are more suitable for larger sums or international transfers. This method electronically moves funds from one bank to another, offering a speedy and secure way to transfer money, whether it’s within your own country or across borders.
Where wire transfers really shine is the wide variety of benefits they provide to businesses, these benefits include but aren’t limited to:
Speedy Payments: Wire transfers are one of the fastest methods of transferring funds domestically and internationally. Small businesses can use wire transfers to make urgent payments, such as settling invoices or fulfilling time-sensitive financial obligations.
International Transactions: When small businesses engage in international trade or need to pay overseas suppliers, wire transfers are a reliable way to send funds across borders. They provide a swift and secure means of conducting cross-border transactions.
Large Transactions: Wire transfers are suitable for transferring significant sums of money. Small businesses can use wire transfers for substantial transactions like equipment purchases, real estate acquisitions, or investment capital transfers.
The financial landscape in Eastern and South-Eastern European, Caucasian and Central Asian countries is rapidly evolving, driven by the increasing adoption of digital technologies. A forward-looking strategy involves embracing digital payments to ensure that all segments of society can participate in the digital economy, fostering financial inclusion and economic growth.