Outlook for digital payments is bright for 2022

By David Sharp, President, PaySimple

In the past, an integrated digital payment solution was viewed by many businesses as a “nice to have” option for customers. But it wasn’t until the COVID pandemic hit that it quickly became a “need to have.” Businesses had to quickly pivot to offer online, mobile, or contactless payment options to keep cash flow going and help customers safely and conveniently pay for services.

In a Mastercard study of small businesses across North America, 76% say the pandemic prompted them to become more digital, with 82% changing how their business sends and receives payments.

Many businesses are finally getting back to pre-pandemic levels of commerce, and the digital payment solutions they implemented during the pandemic are proving to be a solid investment for long-term success. Over two-thirds (67%) of small business owners agree that one upside to the pandemic is that it prompted them to upgrade their digital/e-pay solutions, which 81% say has improved customer satisfaction levels.

Services over transactions

One of the key benefits of digital payments is that it allows business owners to focus on providing services rather than conducting financial transactions. Providing customers with an online payment link, preferably when the service is scheduled, eliminates the need for an employee to collect a check or swipe a credit card. Customers can be assured of contactless service and a secure, encrypted payment transaction. They can have the flexibility of using the payment method they choose with a payment method on file, such as a new credit card or ACH account. As face-to-face safety remains a concern following the pandemic, minimizing personal contact with online or contactless payments can help mitigate these concerns.

Digital solutions are also helping to address labor shortages plaguing businesses of all sizes across the country. For example, a hair salon can use online booking, check-in, and digital payment solutions, reducing the need for a full-time receptionist. It could also allow the salon to scale staffing up or down depending on predictable demand.

Mobile matters

With smartphones in the hands of most consumers, businesses should not ignore the opportunity to increase revenue through mobile payments.

The ability to sell and buy services and products online, access cash flow reporting, manage customer accounts and send invoices from anywhere are some of the key reasons businesses are increasingly adopting mobile payment applications.

Omni-channel & digital technology deliver

Streamlining invoicing and billing and adopting an omnichannel payments management solution can accelerate customer payments, enabling better cash flow management and reduced collection risk. In addition, payment tracking associated with invoices and received payments provides an accurate view of cash flow, exactly how many customers have paid, and which customers have an outstanding balance. Particularly for businesses that offer services at monthly, quarterly, or other intervals, the ability to set up recurring billing is another benefit.

In addition, businesses can use data analytics from their payment solutions to gain insights into their business and better manage the peaks and valleys that are certain to occur.

All types of businesses have transitioned to digital payments since the COVID pandemic started. It has underscored the operational and personal safety and convenience benefits these solutions present. The payments industry continues to innovate and help businesses streamline their operations by providing technology that can integrate with other parts of their business to create efficiencies and a true flywheel effect.

As many businesses continue to rebuild and refocus in 2022, integrating a digital payment strategy that enhances customer service and improves cash flow is a win-win for the customer and the business.

David Sharp is President of PaySimple. He Joined the company in 2007 and is passionate about helping customers, employees and investors realize their full potential with the simplicity and flow that PaySimple’s commerce enablement platform brings to the marketplace. David has 21 years of experience in the payments and software industry, including eight years as Vice President of the Western Region for Global Payments. During his career, he has led business development for payment network processing, agent bank and ISO programs, and alternative payment solutions. He served as a non-commissioned officer in the US Army following graduation from the Defense Language Institute and holds a BBA in International Business from the University of Georgia.