Which Payment Methods Should SMBs offer in 2023

To survive as an SMB in today's competitive market, you need to offer customers a wide range of payment methods so they can make their purchases conveniently. This will help you keep your customers satisfied while increasing sales. Here are some of the best payment methods SMBs can offer in 2023:

UPI payments

UPI (Unified Payments Interface) payments have emerged as a revolutionary mode of payment in recent years. UPI enables seamless and instant fund transfers between bank accounts using a mobile device. This innovative system has transformed the way people make payments, offering convenience, security, and accessibility. With UPI, individuals can transfer money to friends, family, or merchants with just a few taps on their smartphones. It eliminates the need for physical cash and reduces the hassle of carrying loose change. SMBs must consider providing this payment option as most of the customers often prefer this swift and secure mode of payment.

Digital Wallets

Digital wallets are becoming an increasingly popular payment method among customers. Instead of carrying around cash or credit cards, customers can simply store their payment information in a digital wallet on their smartphone and use it to make purchases both online and in-person. As an SMB, offering digital wallets as a payment option can help attract customers who prefer this method and streamline the checkout process for a better overall experience.

Card payments

This payment method allows customers to make payments using credit or debit cards. Under this form of payment, transactions can be processed quickly and securely. Card payments involve a card reader, which processes the payment information on a customer's credit or debit card. The reader is connected to a payment processing service, which verifies the card information and completes the transaction. Some businesses also offer contactless card payments, which allow customers to pay by simply tapping their card or waving it over the reader.

QR Code payments

QR code payments have become increasingly popular in recent years, especially among small and medium-sized businesses (SMBs). This payment method allows customers to make payments quickly and easily using their smartphones. QR code payments require the payee's smartphone camera to scan the QR code displayed by the merchant. The code contains the payment information, including the amount due and the merchant's account details. Once the code is scanned, the customer can enter their payment details and complete the transaction. QR code payment method is advantageous because it is faster, offers increased security, charges lower transaction fees, and provides a satisfying customer experience.

Buy Now, Pay Later

Buy now pay later (BNPL) is a mode of payment that allows shoppers to purchase products and services upfront and pay for them in instalments over time. This payment method has grown in popularity in recent years, especially among younger generations who prefer more flexible payment options. Customers are typically required to make a small down payment upfront and then given a set amount of time to pay off the remaining balance.

Biometric pay

Biometric pay is a cutting-edge payment technology that uses unique physical characteristics, such as fingerprints and facial recognition to authenticate payments. This innovative technology provides a secure payment experience and eliminates the need for customers to carry cash or cards. As an SMB, offering biometric pay as a payment option can help attract tech-savvy customers who value convenience and security in their transactions.

Voice transactions

Voice transactions, powered by AI-based payment systems, are quickly becoming the next big thing in the world of e-commerce. With the rise of smart home devices and virtual assistants, consumers are becoming comfortable using their voices to make purchases. This technology eliminates the need to type in long credit card numbers or shipping addresses. One can simply speak their order into the device and let the AI-based payment system take care of the rest. A side note while talking about voice transactions, many SMBs now use voice-based payment confirmation alerts to ensure that the correct amount has been received. This is another way technology increases the efficiency of businesses by decreasing friction.

To Conclude

Offering multiple payment methods is a great way to make your customers' lives easier and improve their experience with your business. It also provides you with an opportunity to expand your customer base by attracting new shoppers who may not be able to use certain payment types. Given the plethora of options in the market, it's best to evaluate all available alternatives before you choose one that is best for you.

Click here  to discover how you can offer seamless online as well as offline payment solutions to your customers.