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When it comes to making payments, both businesses and individuals stand to benefit from doing so in the digital world. In fact, there’s an estimate that for an SMB to pay the bill, it costs them about $12 on average, which can be cut down to $0.5 per bill, via an online payment. However, what if you were to switch to cloud-based payment in every single aspect of your life? What if you were not to use cash ever again for as long as you live? Here are several thoughts on this topic, as well as some compelling reasons why you should start using cloud-based payment processing as soon as possible.
The possibility of local payments
One of the strongest arguments against digital payments, for years now, is the inability to pay locally. Nowadays, nonetheless, this is as far from the truth as it gets. You see, with a mobile-payment system; you can now pay for your groceries with nothing other than your phone. In fact, since the boom of cryptocurrencies in the past, there were some who argued that we will soon be able to pay for a hot dog with a Bitcoin. While this may still be further down the line, the fact remains that there are some platforms and applications that are currently used for this same purpose. The biggest obstacle is probably the inability of the majority of vendors, which is a trend that’s currently taking a turn for the better.
It’s much safer
Imagine getting your wallet stolen. A true horror, but while your credit cards may be secure (provided that the pickpocket doesn’t have your pin) your cash would be all gone. With cloud-based payments, the thief can never use your funds without the knowledge of your password or other peculiarities of your authentication process. The problem with the security of your funds, on the other hand, lies in the digital world and malicious third-party groups and individuals known as hackers. Sure, in the past, cloud technology wasn’t as reliable as it was today, which caused it to get a lot of bad rep. Today, nonetheless, the overall security is vastly improved.
For those who are still skeptical about this, it’s important to mention that there are more than several safety compliances and certificates that are internationally recognized as safe for a transaction. For instance, the PCI DSS compliance offered by platforms like IPSI is more than a guarantee of safety.
Data-collection and analysis
Another thing you need to keep in mind is the fact that paying with cash restricts vendors from harvesting and processing customer data. Conspiracy theorists, technophobic people and skeptics may see this as a good thing, yet, this is definitely not so. First of all, this kind of data analytics allows vendors to improve the business world as a whole. Second, by doing so, they’re directly improving the overall customer experience. Have you ever noticed how the e-store you’ve previously visited usually takes you straight to the category you were browsing the last time or offers you discounts to the items you showed some interest in? Well, what if traditional retailers had this option, as well?
Easier to build a subscription-based payment system
If you’re a business owner, using a cloud-based payment processing is the simplest way to create a subscription-based payment system. What this means is that you’re automating the payment process followed by your customers in order to ensure their loyalty for as long as possible. For instance, a customer, the one who is still interested in your service or product, could simply forget about making a new payment next month. With a subscription, the prolongation is implied unless directly canceled. In other words, you’re minimizing the potential customer abandonment rate by quite the margin.
One of the most important reasons why cloud-based payment systems are so incredibly effective is the fact that they are easy to integrate with your current business model. Earlier on we talked about subscriptions, yet, these are most likely not the only account receivables that will be coming your way. Even aside from this, you also have some account payables that you have to deal with. Whether it’s your overhead for supplies, the digital bill payment (something we’ve discussed in the introduction) or a subscription for industry-relevant tools, it’s much easier to connect all of these transactions in a single, closed cloud-based system.
Easier record tracking
At the very end, by paying everything through a cloud, you’re keeping a record (at least in some form) of every single transaction you’ve ever made. The problem with budgeting in an analog world lies in the fact that it greatly depends on your memory, your conscientiousness and your fiscal habits. Here, you’re passively keeping track of every single dollar you receive or spend. If you decide to do some diagnostic accounting, at any point, you’ll have a much easier job at doing so.
The only downside to switching to the cloud-based payment procession is the transition period, which, if you’re not familiar with these trends, might be a bit rough. Nevertheless, in the life of an entrepreneur or a fiscally responsible individual, change, evolution and adjustment periods are mandatory.