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If you’ve watched TV in the past few years, you’ll probably recall that credit card commercial with the tagline, “What’s in your wallet?” Nowadays, the answer to that question is probably not cash. In 2014, the San Francisco Federal Reserve reported that only 14% of consumer purchases were made in cash. Read on to learn why cash may no longer be the king of transactions, and what’s replacing it.
Electronic Payments: The New Normal
The value of the current electronic payment industry stands at $5.5 trillion. Vendors and financial institutions can’t afford to ignore that number. But how did the electronic payment industry come to dominate cash?
Technology has a great deal to do with these changes – it’s now easy to send and receive money electronically. In September 2014, Apple introduced Apple Wallet, a digital wallet that enables customers to pay with their iPhones. Google and Samsung have released their own digital wallets.
Furthermore, electronic payments are appealing in countries with less-developed banking sectors. These same countries also have a stronger wireless infrastructure because phone lines were never as entrenched. So, it is easier to send a payment via smartphone than to go to a bank.
As a result of the growing popularity of electronic payments, many investors have poured money into this space. Although this is a technology that has yet to mature fully, investors see its future promise driven by today’s consumers.
How Can Businesses Prepare?
It may take years for cash to stop circulating completely. In the meantime, businesses must prepare themselves for the transition to electronic payments.
Savvy business owners will keep abreast of the latest developments in the payments industry. That doesn’t mean embracing every new technology that comes along; rather, it involves researching what trends have staying power and what will be a flash in the pan.
Offering a range of payment options to customers gives them flexibility and enhances satisfaction (which in turn leads to repeat business). What payment options should you provide? This also involves research. Talk to your customers to learn how they prefer to pay. Make sure that whatever payment methods you choose to accept are cost-effective and efficient for you as a merchant. You want to maintain an edge over your competitors, but you also don’t want to spend more on payment method acceptance than it will be worth to your business.
Power Pay Payment Processing: Helping You Accept Electronic Payments
Are you interested in accepting electronic payments to satisfy customers and stay innovative, but you’re not sure where to start? Contact Power Pay Payment Processing today. We enable merchants to accept a variety of credit cards online, in person, or over the phone. With Power Pay, you can accept website payments anytime, anywhere. Power Pay has some of the lowest rates in the industry, and there aren’t any hidden fees. And our setup is fast – you can begin processing credit cards in as little as a day! Call us now at 1-800-483-8815 to learn more.