Business owners have a lot on their plates. Between sales and customer service to human resources and product development, it may seem like there aren’t enough hours in the day to get everything done. Because life as a small business owner is hectic, some activities and processes can get overlooked.
Your payment acceptance policy may be one of these neglected areas. However, having flexibility when it comes to customers’ payment forms can have a huge effect on your business.
Many small businesses only accept cash payments or checks because of the security and ease of depositing them into their bank accounts. However, in today’s world—with fewer personal interactions and more trust in technology—customers are looking for alternative payment options.
Not only can payment-acceptance flexibility meet consumer demand, but a lack of it could cause you to lose out on business. Mobile payments are increasing in popularity as society becomes more comfortable—if not dependent—on our mobile devices.
If you run a small business that wants to add mobile payments as an option for your customers, then consider signing up for Sunrise. We’ve developed services that make it easy for you to accept mobile payments, whether you’re running a customer’s credit card or processing a bank transfer. Keep reading to learn more.
The Benefits of Accepting Mobile Payments
If you’re on the fence about accepting mobile payments, consider their significant benefits— they can help you to grow your profits and create better relationships with your customers.
A few reasons why companies set up mobile payments include:
- It’s easier to record when invoices have been paid, as opposed to manually scanning checks.
- Business owners can get the funds they need faster—within a matter of hours after submitting an invoice.
- You can know which customers have already paid you and provide them services immediately instead of waiting for checks to clear.
- Customers appreciate the multiple-payment options and have a better experience choosing the payment method that works for them.
As you can see, there are both tangible and intangible benefits to accepting mobile payments for your business. You, your customers, and your bookkeepers all benefit from these digital options.
Addressing the Drawbacks of Mobile Payments
We know that there are drawbacks to accepting mobile payments. Some business owners worry about paying credit card fees and aren’t sure about using the technology. We’ve heard these concerns repeatedly from our Sunrise customers—which is why we developed a system to ease them.
First, we do what we can to limit the fees that small businesses pay when processing transactions. We work closely with banks to make sure our users save money and can afford our services. We’ve even formed some partnerships to get you the funds you need faster—members with a Chase bank account have access to same-day deposits, while users of other banks can access their funds within 72 hours.
Next, we take steps to address usability by creating a simple, clean interface for you to use. You don’t need to be a technology expert or receive advanced training in our tools to understand how to send an invoice or accept credit card processing. We also take care of the software development and mobile payments on our front end, so you don’t have to worry about it when using our back end.
By keeping a finger on the pulse of small business owners, we can address their concerns better and make it easier to expand their offerings, even if it just means adding mobile payment options to invoicing.
Why Your Customers Want Mobile Payments
There are several reasons why your customers prefer to pay invoices online instead of sending checks by mail. A few key benefits of paying online include:
- Easier financial management: Your customers can immediately see the charge on their cards or on their bank statements, even if the transaction is still pending. This allows them to see what funds they have in the bank.
- Ease of payment: Writing a check and mailing it can be cumbersome for some of your customers.
- Guaranteed receipt: Your customers aren’t worried about their checks getting lost in the mail or the payment bouncing. They’ll know immediately that you received the payment.
- Points and rewards: Many customers enjoy charging expenses to their credit cards because they can get points, cash back, and other rewards for the expense.
- Unified payment methods: Some of your customers might try to streamline their expenses so all of their costs are on 1 credit card or come from 1 bank account. This makes it easier to manage costs and record debits and credits at the end of the month.
These reasons stand for both B2B and B2C brands. For B2C businesses, your customers might want to get travel points on their credit cards. For B2B companies, your clients will want to keep their books balanced with charges on 1 or 2 cards only.
Read What the Experts Say About Mobile Payments
You don’t have to take our word for the benefits of accepting mobile payments. Multiple studies have shown how in-demand these options are for customers. According to research shared by Statista, 440 million global users took advantage of digital payment options in 2018, with PayPal serving as the most used digital payment tool. There are 64 million mobile payment users in the United States who feel comfortable paying for goods and services on smartphones.
Furthermore, the use of check-based payments continues to drop. In a study released in 2016 by the Federal Reserve, the number of mailed Social Security checks dropped significantly over a 10-year period as recipients preferred bank transfers or debit card deposits. Checks made up 46% of Social Security payments in 2003 but only 15% of payments in 2012.
Know what your customers want in invoice payment options. It’s likely that a large portion of your target audience wouldn’t want to pay by check or cash.
Start Accepting Mobile Payments From Your Customers
At its most basic level, mobile payments offer more flexibility and options to your customers, which improves the consumer buying experience.
And the speed of payment and ease of organization can save you hours of anxiety spent organizing your books and tracking down invoices. Don’t feel overwhelmed by the ability to accept mobile payments—let the team at Sunrise help you to set up and launch your new payment system.
Mobile payment tools are part of the free services offered through the self-service software at Sunrise. However, we also offer advanced bookkeeping services for a monthly fee. Learn more about these services and see if your ledgers can benefit from the organizational skills of an expert bookkeeper.