How Businesses Are Leveraging Technology to Improve Their Payment Process

How Businesses Are Leveraging Technology to Improve Their Payment Process
|Updated on: February 13, 2023

Technology has streamlined, simplified, and enhanced the way businesses perform activities. Today, all businesses use some form of technology to improve certain aspects of their operations. For example, integrated payment processing is one of the areas that has improved how businesses handle customer payments. Earlier, payments were accepted using another device, and the reconciliation process was completely done manually. With the help of an integrated payment processing system, accepting payments became easy, automated, and fast. It has improved business operations, customer satisfaction, and ROI.

How are businesses using integrated payment processes to simplify their operations?

The following are some ways businesses are using integrated payment processing systems for more efficient operations.

QR code and payment mode in the invoice

Quick response or QR codes are now being used to directly accept payment from customers. QR codes are embedded in the invoice generated by the business, and they allow customers to pay using their smartphones directly. All the customers need to do is have a camera on their smartphone or an app to capture the QR code, and they can pay the amount charged by the business. The QR code patterns are first decoded and then converted. A QR code is a versatile option as it can do a myriad of actions; connect to a payment link or confirm that a payment has been received. Today, more than 170 million payments have been made in India simply using a QR code.

QR codes are not only easy to generate but also a seamless option as it doesn’t require customers to download any special software. As every Indian with a smartphone uses UPI such as Google Pay or PhonePe, it is simple to receive payments from customers in seconds. It ensures customers can pay instantly, thereby eliminating the long queues in stores. All customers need to do is download a payment app and then point at the QR to make the payment. Businesses can make payments hassle-free using QR codes embedded in the invoice generated.

SMS payment links

You can ask your customers to pay by sending payment links. All the customer needs to do is click on the payment link and then pay. It is one of the easiest ways to receive payments for the products purchased from you. To personalize it, you need to enter the customer’s name and the amount to be paid and then send the payment link to that person’s contact number. It is among the fastest ways to receive payments from customers and makes them feel safe as they have a copy of the message sent by you. They can choose the online payment method they wish, thereby giving them the flexibility to choose an option that makes the most sense to them.

Businesses are using software to send payment links to several customers at once. This has helped businesses save hours every day as they can automate the process while ensuring it looks personalized. SMS payment links don’t require your customers to download anything, and they save you money as you don’t have to purchase a payment processing machine. It cuts costs considerably and makes it convenient for your customers to pay you on time. The payment link creation software often has options for you to customize the times your SMSs are sent, etc.

Payment reminders with links via SMS and email

Payment reminders are gentle ways of reminding customers they need to complete their payments. Sometimes, if a payment fails, a customer might forget that he has to complete the payment at a later date. Technology and the advancement of payment processing systems have allowed businesses to send payment reminders that have payment links via email and SMS to ensure that the payment is executed. Sending only payment reminders is not sufficient as it can still be seen as a hassle because the payment must be done using another software or method. With payment reminder links, customers are highly likely to pay the amount due to businesses.

Small businesses often suffer due to non-paying customers because businesses do not follow up when the original method of payment fails, or payment is simply not done. Even if the amount may not seem like much, imagine how much the business will be losing over time if many customers do not pay. Payment reminders through SMS and email are among the best ways to get in touch with customers and remind them to complete payment. The software enables businesses to keep track of payments in real time. This helps businesses simplify receiving payments from customers.

Account reconciliation

One of the most important aspects of running a business is reconciliation. When it comes to payments, the reconciliation is between the ERP, which has the invoicing module and the payment processor. Before integrated payment processing came into the picture, businesses had one option to accept payments. They had to have two separate systems; one to accept payments (this could be a separate device or virtual payment method), and the other is invoice-generating software (part of the ERP). Reconciliation was performed manually, and this led to human errors, delays, hours, and tons of effort.

With the advent of integrated payment processing systems, the requirement for two separate systems no longer existed. One system was sufficient as it could process payment and post it on the invoice. This helped free up resources. Cashiers no longer had to manually type because it was all done seamlessly through one centralized system. Another benefit of this system was the automatic reconciliation. As the payment was processed and posted instantly, the account reconciliation also occurred instantly, thereby speeding up the reconciliation process. This is helping businesses save time and reconcile faster than ever. 

Should your business opt for an integrated payment system?

An integrated payment system works cohesively with your ERP system’s invoicing module rather than as two separate entities. It enables your business to work better, frees up your resources, and enables you to utilize the time elsewhere where it truly matters. An integrated payment system comes with risk and fraud management which helps keep your customer data safe and secure. It also enhances your customer’s experience, which increases their chances of regularly buying from you and telling others about your business. An integrated payment processing system is made for businesses of all types and is suitable for every type of business.

It is highly reliable, and the one you choose should work with your ERP if you already have one in your business. It will make accounting simpler than ever before for you and your employees. It will also prevent late payments and failed payments which is one of the biggest problems for MSMEs today. You should choose an integrated payment system if you want efficiency, ease of accounting, and speedy transactions. It will help your entire business due to its security features, speed, and simplicity of usage. It is a win-win situation for everyone involved, including your customers, who are more likely to stay loyal if you employ faster processes.

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