Are unsecured and slow payment procedures hampering your business growth? Or does your business still use accounts receivable, accounts payable, and paper checks? Learn from businesses using the best digital payment solutions for secure and efficient transactions. 

As per the triennial Federal Reserve Payment Study, payments made through checks are constantly declining in the United States, from 18.1 billion in 2015 to 11.2 billion in 2021. This trend is gradually showing in the rise of card payments by 10.0% per year from 2018 to 2021. This denotes that businesses have started embracing different cashless payment systems for optimized operations.

Recent studies by Juniper Research show that global digital card transactions will increase from 28 billion in 2022 to 121 billion in 2027, with the U.S. representing 72% of the revenues from B2B digital card transactions. So, if you are still apprehensive about using cashless payment methods as an integral part of your business operations, embrace the change to propel business growth.  

After all, there’s a reason why digital payment solutions by global technology and business process companies have quickly become a dynamic and attractive attribute of the payment landscape in most companies. Let’s explore the benefits of digital payments for businesses:

1. Front-to-Back Payment Digitization

With front-to-back payment digitization services, you can use all digitization levers simultaneously, thus revolutionizing business transactions, procedures, and overall operations. Digital payment investigations further improve important client and business-facing metrics, thus offering a seamless experience to the customers, which is crucial for business success in the present market. 

Front-to-back digitalization is fundamentally a brand new way for banks to staff, organize, finance, and monitor their work, which eventually serves the best interest of the clients and the business.

Speedy, safe, and secure digital payments solutions propel business growth by giving its target customers a more transparent and efficient payment experience that naturally makes them rely on a business, thus aligning the technique with a company’s growth ambitions. Digital payment landscape and their measurable transformation-led advantages enable financial organizations to handle all customer interactions as best as possible.  

Further, front-to-back digitization is one way for financial organizations to meet different digitization challenges while also getting the path to successful digitization. This further makes banking faster, simpler, and better for customers, ultimately accelerating the returns on investment for banks and other financial organizations. 

2. Ensure a Hassle-free Payment Experience for Clients

Highly innovative, front-line payment technology solutions ensure a flawless payment experience for customers and reduce fraudulent activities. The use of digital payment solutions means leveraging different technologies that encrypt and secure data, along with multi-factor authentication that makes it difficult for fraudsters to initiate scams. 

Additionally, different types of digital payments, like virtual credit cards, feature just one payment for only one vendor for just one amount, thus safeguarding the user’s credit card from getting hacked.

Digital payment solutions can also help reduce waste and costs by reducing the use of paper checks for incoming and outgoing payments. Moreover, using checks can be costly for banks and other businesses, involving expenses like printing, secure disposal, and postage. While the digital means of payment help businesses save a good amount of money, it also helps the clients save on hefty check processing fees, as digital payment fees are comparatively lower per transaction.

When people work with businesses accepting digital payments, the savings they make lead them to appreciate those businesses, which automatically brings in more revenue for those businesses, ultimately leading to growth.  

Besides being a green solution, few digital payment procedures do not even have associated costs or additional fees. Instead, there are cash-back offers for the users, which means more usage of the virtual credit cards, thus bringing in reoccurring revenue for businesses on every invoice they need to pay, leading to large-scale business growth.

3. Mitigating Payment Ecosystem Issues for Banks

Digital payment solutions solve some of the most critical problems surrounding the payment operations landscape of financial institutions and banks in the present environment. 

With more transparency in payment speed and status, banks can retain customers, leading to exponential business growth. Smooth digital experiences for banking customers, especially those with time constraints, help businesses acquire and retain next-gen customers, like millennials and Gen Z. 

Further, digital payment solutions support growth in payment rails by alleviating manual payment volumes in legacy payment infrastructures. This further improves workflow platform utilization that optimizes business operations without investing heavily. 

Different new ways of making digital payments help banks and other financial organizations decrease the pressure on margins and cost, thus ensuring continuous improvement of bank costs and margins while offering cost competitiveness. AI and ML-based digital payment solutions help with faster payment processing, thus reducing the instances of manual queues or payments hitting the investigation queue. 

Further, by quickly resolving payment issues and investigations, digital payment solutions help banks save much of the amount that would otherwise go into technology and bandwidth and maintain a robust investigation team. This further helps banks rank higher in their CSAT or customer satisfaction scores, automatically leading to large-scale client retention.

4. Increase in Transaction Speed and Real-Time Cash Flow Visibility 

While the conventional ways of payment, like paper checks, may take days and even weeks to process, digital payments are instant. Since digital payments improve transaction speed, they can help companies pay invoices right on time and thus create a good impression among their clients. This fosters immediate business growth, with more appreciation coming for a business due to quick payment service.

Digital payment solutions also help business executives make quick hiring, investing, and spending decisions since they can rack income and expenses in real time. Digitized payments help businesses view real-time cash flow as the account balance instantly reflects the change after a payment occurs, with all currency conversions happening right at the time of the transaction.

Another significant benefit of digital payment solutions for businesses is increased accuracy and scalability. Since companies need to spend just eight to ten hours per week processing and reconciling payments, it brings in cost benefits for them while also resulting in a high level of accuracy in all their transactions and the scope to scale their business.

5. Exclusive Advantages of Modern Digital Processing Tools

Automated process mining tools help recognize payment processing anomalies that further streamline different business procedures. These include:

  • Credit Management: These days, it is crucial for businesses to offer seamless customer experience for all kinds of clients, whether it is a customer looking for a loan or someone who needs help in understanding the shifting market landscape. However, providing this experience requires efficient procedures. Financial organizations can speed up their credit procedures and provide customers with a highly competitive credit journey by leveraging Celonis.
  • Know Your Customer: KYC is essential for a business’s regulatory environment but requires proper execution with low friction for the customers. Businesses can always use insights from Celonis to optimize their KYC procedures while ensuring that they operate seamlessly and with end-to-end customer lifecycle in mind.
  • Payment Processing: Completely automated payments improve efficiency and customer experience. Celonis understands and resolve the failed payments to automate payment processing. All these diminish liabilities, enhance efficiency, and make the clients happy.

Moreover,  businesses can analyze exception processing and improve their appropriately to solve all issues before customers can feel the effect. Modern ways of payment investigations boost payment orchestration and vital operational metrics that may impact clientele experience. Analytics and MI-driven digital payment solutions, simplify and add to the main growth parameters, like ADR or Average Days, backlogs, and quality.

Fully automated workflows and tasks and in-built checks and controls eradicate manual processing and mitigate risks. Highly innovative MI and digital dashboards are other digital payment governance tools that ensure complete transparency in digital payment processing. Thus, business metrics and different business procedures get better.

Modern digital payment solutions and tools solve all payment-related issues and help businesses retain customers on a large scale. So, payment digitalization is a breakthrough transformation for all companies that can lead to large-scale development.

The Bottom Line

So, this is how the growth of digital payment transactions are boosting businesses. Remember, the global digital payment ecosystem is increasing rapidly due to the

  •  government initiatives in different nations,
  •  increased use of smartphones and the internet, and
  •  The large-scale popularity of e-commerce

Such FinTech software development solutions have completely revolutionized businesses by letting them offer supreme convenience to their clients, which has added to the wonderful growth of businesses across the world.

BoTree Technologies is a leading FinTech software development company. 
Contact our experts to learn about our Design for Cashless (DFC) methodology.