We know that digital money transfers are gaining popularity, but some people are wary of using it for their businesses. However, did you know that digital money transfers could help you increase your profits as well? Here is a look at the reasons why you should start doing more digital money transfers.
Faster Transfers
Most online payment methods are faster than traditional financial institution’s transfers. Most people can receive their money instantly, especially if it is a small amount. Some mobile platforms offer next-day transfers for larger transactions, making it more convenient for the receivers to get their cash immediately. For instance, most paper-based checks will take 15 business days to clear while most online payment methods online take 1-3 days to clear. Faster transfers mean that you would likely create a stronger relationship with your suppliers, merchants, etc., meaning more long-term profits for you.
Convenience for Customers
Customers will always want a convenient way to pay for your products/services, so you should offer them that. Digital money transfers are an easy way for your customers to send you money, especially since most people prefer mobile money transfers over other payment methods. Showing your customers that you offer a variety of payment methods, including mobile money transfers, will make them more likely to do business with you.
Cost-Effective Way to Pay Your Employees
Other than being secure, digital money transfers can be a cost-effective method to give your employees their salaries. Using a bank to send money, especially to different banks, can rack up a lot of fees. Additionally, it will require a lot of trips to the bank if you cannot send it online. Mobile payment methods allow you to pay your employees cost-effectively since mobile payment platforms tend to have lower or even no fees.
Enhances Your Credit
Digital payments usually automatically give users a credit history. Credit history is crucial, especially as a business owner, so it can enhance your access to credit. It is especially beneficial for young, new entrepreneurs with little to no credit score.
Stay on Top of Your Records
Digital money transfers will almost always have a record that you can keep track of. Every time you receive or send a payment, you will get some form of notification or you can find it in the history of your mobile payment platform. Therefore, you can easily stay on top of your business’s finances, reducing your risk of miscalculating your business’s finances.
Cheaper for Both You and Your Customers
Most bank transfer fees can be huge, especially if it is an international transfer. Most paper checks cost $4-20, which can easily cost you a lot if you find yourself sending checks all the time. Most digital payment methods will cost much less than traditional paper checks and bank transfers, so you can save a lot of cash when you send money to your merchants/suppliers and receive money from your customers.
Digital money transfers can save you a ton of money and potentially get you more long-term profit for your business.