Digital payments can do much for your business. Not only do they help you reach more people but also engage them better, leading to long-term benefits for your brand and business. But even as more people switch to paying digitally, many businesses still struggle to adopt a digital-first approach in their payments.
Yet, looking at the benefits, it becomes obvious that digital payments are the way to go. So, what makes them essential in today’s day and age? Let’s take a look.
You might like: 6 Frequently Asked Questions About Digital Payments
4 Reasons Why Digital Payments are Good for Business
1. Good for Growth
Digital payments are good for the growth of your business. They help you reach out to newer markets and connect with a larger audience. This lets you to build a loyal customer base in other markets beyond your home country. For example, if you are a business owner in Germany and would like to sell across the EU and rest of the world, digital payments are the best way to accept payments and transact across borders.
Today, more people are shopping online and paying through digital means. 75% of consumers in Europe shopped online in 2021, using digital methods such as cards and e-wallets to pay for their purchases.
To reach these consumers, businesses have to offer digital payment methods. They have offer customers with flexibility and convenience in order to engage them and drive revenue growth.
Different methods are popular in different countries across Europe – hence drawing up a list of the best options is good.
2. Good for Customers
Digital payments give customers a lot of choice and freedom in how they pay. Not everyone pays with cash, as reports show: 55% of consumers in Europe today prefer to pay using cashless means such as cards or mobile wallets.
60% of all cashless payments are made through cards, while mobile wallets have become the most-used payment method in the top 5 e-commerce markets in Europe. Credit methods like Buy Now Pay Later allows people to pay for their purchases over an extended period of time, breaking up their payments into easy interest-free installments.
Increasing digitization and rapid growth of e-commerce throughout Europe are shaping the way consumers make payments. Offering digital methods helps you offer your customers the freedom and convenience to pay as they want. It shows you care. And this yields rich results for your business.
3. Good for Brand
In today’s business world, how customers see, feel, and relate with your brand is crucial. Customers must feel that you care for them. That is what breeds loyalty and drives repeat sales. Loyal customers are also more likely to speak positively about your brand. This word-of-mouth publicity is great for your business because most people tend to trust the words of people they know.
Over 90% of consumers are more likely to buy from a brand again if they had a positive experience.
Digital payments help you to create a seamless and secure payment experience which delights your customers. You also get deep insights about what your customers prefer, how they shop and pay. Knowing what they like helps you to respond promptly to their needs and convert their interest into a sale. When you engage your buyers, they are more likely to report a satisfying experience with your brand, which improves your brand image.
Learn more: How Payments Enhance Your Brand Experience
4. Good for your Bottom line
Digital payments can improve your bottom line and your profits. How?
They help you reach a large audience and engage with buyers better. Using digital payments, you can pay your suppliers and vendors on time. You can make pay your employees as well as for goods and services easily. This improves brand differentiation and drives preference for your brand over competition.
Not just this, insights from payments data can improve decision-making and run your business smoothly. This leads to better usage of resources and saves time and money.
How can Novalnet Help?
We can help you set up digital payments. Our technology lets you accept payments globally in over 125 currencies and in 150+ payment methods. That means fast and secure payments, for your customers and your business.
As a global PSP, we are trusted advisors to Europe’s leading brands. Our state-of-the-art technologies and methods help businesses accept payments globally. From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get you up and running with your payments in a short time, and with zero hassle.
Give us a call today to know more.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.