Payment processing is a critical aspect where sales transactions are settled. With technology evolving, this process has now become more streamlined and integrated.
According to PricewaterhouseCoopers (PWC), the global number of cashless payments could increase by more than 80% between 2020 and 2025. It thus emphasizes the importance of making integrated payments part of your business.
However, there are a few concepts to understand before getting started. So explore the basics of payment processing, specifically integrated payments, and how they work here and streamline your business efficiency:
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What Are Integrated Payments?
Integrated payments refer to incorporating payment-processing services into a business’s point of sale (POS) system or software. Instead of having multiple software, applications, and other payment processing platforms, integration simplifies payments.
Companies can accept credit cards, debit cards, mobile payments, or gift cards with a single system. As simple as that. It saves time, money, and effort while being a convenient option for the business and its patrons.
How Do Integrated Payments Work?
When a customer makes a payment, the POS system sends the payment information to the payment processor. In turn, it securely processes the payment and responds to the POS system. The entire process takes only a few seconds.
Furthermore, the transaction happens automatically, eliminating the need for manual intervention. Merchants can, thus, effortlessly apply this to online as well as in-store purchases.
What Are The Benefits of Integrated Payments?
Businesses increasingly benefit from an integrated payment system. With a significant shift toward online shopping or eCommerce, a payment system upgrade makes business sense.
Although some merchants may have a substantial financial outlay to move to an integrated payment system, it would be well worth the investment. Looking at what the business can gain below may provide more insight:
- Increased efficiency: Companies can process payments quickly and easily, reducing the time it takes to complete a transaction and, thus, the need for labor time and effort.
- Improved accuracy: Eliminate the risk of errors associated with manual payment processing, ensuring payments are processed accurately every time.
- Enhanced security: More secure than manual payment processing, they use encrypted data transmission to protect sensitive payment information.
- Cost savings: Save money by eliminating separate payment processing systems, reducing processing fees, and improving overall efficiency.
- Improved marketing: The spending habits of patrons can highlight which part of the business is doing well and where companies could focus their marketing efforts.
- Streamlined cash flow: By monitoring the data from the system, businesses are aware of the various types of transactions they deal with daily. In the long run, it could help to streamline their cash flow.
- Build payment partners: Most payment software partners can integrate payments with their products. For merchants, this is good news as it only strengthens their relationship with their providers.
- Prepare for tax season: Because the integrated payment system collects financial information, it would be readily available for businesses to complete their tax season with minimal effort.
- Improved client relations: The efficiency of integrated payments never fails to impress. Clients complete their payments and seal the deal in a few short steps. It also means shorter queues, and therefore a more pleasurable shopping experience.
If the extensive list still leaves a few doubts about integrated payments, don’t hesitate to do more research into it. Asking other merchants could also be an excellent way of gathering more information.
Which Integration System Should You Choose?
While contemplating the various integration solutions, you should consider their requirements—a mismatch between what the provider offers and what your business needs may lead to increased problems.
Therefore, considering the following could narrow down your choices:
- Review the service models: Some suppliers offer a self-service option but could also have a full-service package at a reduced cost. It can be the appropriate choice depending on what your business needs and what it can include in its budget.
- Compare the partnership structures: As each business could have unique specifications for their sales, flexible partnership structures are a must. Partners that can’t adjust to system customization may have to pass.
- Examine their expertise: Payment partners operating for several years could have more experience in the market. Furthermore, they may have more up-to-date solutions than others.
- Assess the support structures: In retail, payment problems could arise from time to time. Without the proper support, businesses could lose revenue or customer support. Thus, live, online, or instant customer support would be of better value to your business.
After evaluating all the information and finding the payment partner best suited to your needs, the only step left is implementation. Staff, the customers, and the bottom line will thank you.
Conclusion
Integrated payments are essential for businesses that want to streamline their payment processing operations. Companies can improve more than that—their revenue could also skyrocket.
So contact a payment processing partner today for more information on this valuable business strategy.