The widespread COVID-19 pandemic was probably the most significant impetus for adopting online payments. The most significant change during the pandemic was the adoption of online payments. According to EY, there was a 200% increase in the number of customers signing up for mobile banking during the first year of the pandemic, which resulted in a significant rise in digital retail transactions.
Today, many small businesses understand how important it is to offer customers the option to pay bill online, even though some still only use conventional offline methods to collect client payments. Today’s consumers prefer the option of paying online, so it’s critical to demonstrate to clients how adaptable and contemporary your company is.
Online billing enables businesses to run more quickly and efficiently while minimizing client effort. Additionally, it aids in cutting down on excessive costs associated with physical transactions. Companies that offer online payment methods can make billing easy for their customers by allowing them to choose from a wide range of online payment gateways around the globe. Additionally, it reduces the number of paper invoices that must be printed and sent. There’s no need to endure the additional hassle of waiting for a cheque to arrive, depositing it, and then again waiting for it to clear.
Online bill payment allows users to make payments by entering their bills into the system, regardless of the vendor whose invoice they are paying. With many online bill payment portals, you only need to enter your login information for service providers like your utility and telecommunications companies. These bills will be added to the system automatically. Once the bills are entered into the system, you are free to schedule and pay an infinite number of bills to people or businesses before they are due. Even though most online bill payment services use ACH as their default payment method, some will still print and mail a paper cheque on your behalf if the business or person you’re paying doesn’t accept electronic payments.
Online bill payment eliminates the need for paper statements, making it a greener option than paper bills. Additionally, it can help the company keep track of its bills and eliminate the possibility of a paper statement being misplaced or carelessly discarded.
What dangers lurk in handling payments and bills offline?
While managing bills and expenses offline may seem simpler and less risky, there are several offline payment security risks.
Managing physical payments includes losing or destroying cash, paper cheques, or paperwork. There is an increased risk of theft from internal employees and outside robbers for businesses that keep cash on hand. Inadequate record keeping can result when maintaining records manually, creating mistakes when counting money, or balancing cheque books, which are more likely when bill management is done offline.
To conclude: When your company transitions from traditional payment methods to online bill payments, there are substantial benefits, including improved security, resource optimization, and increased working capital.