There are multiple payment options available for businesses, which can create confusion and unnecessary costs. In this blog post we will provide rationale behind some of the available payment options, and why searching for a more innovative solution may be worthwhile. For example how to accept card payments without a traditional POS terminal. Stay tuned for some exciting news on this topic.
Cash or Card?
Fortunately, this is an issue that is no longer an issue! Paying with a card has become second nature by consumers in almost every location, from the corner store to a high-class restaurant. Although it took some time for card payments to become widely accepted in Hungary, many businesses have understood that offering a cashless option resolves many challenges involving physical cash. This includes reduction of theft from staff and both saving time and cost from cash handling services. Although merchants using online cash registers have been obliged to provide electronic payment everywhere since January 2021, some customers remain reluctant to pay with a card and some businesses remain largely cash payment. For example, a visit to the hairdresser, beautician or mechanic may still require cash payment and customers need to prepare accordingly beforehand. Needing to withdraw cash from an ATM to pay can be viewed as inconvenient especially by more tech-savvy consumers.
Innovative Payment Solutions
In our article, we will provide some logic why a business may choose to introduce innovative payment solutions;
1. Not as expensive as you think
Perhaps the most common objection made by businesses to card payments is that the initial set up consumes a considerable amount of money (POS terminal purchase etc). Card payment vendors have introduced low cost options to allow businesses to quickly accept card payments.
2. Card payments are not complicated
It is widely acknowledged that during the early years the set up of a card payment system for a business was complicated. Early POS terminals were troublesome, expensive and frequently malfunctioned. Thanks to technological advances, cashless payment systems are simple to implement and don’t require complicated POS terminals. The ability to receive both card and mobile payments has exponentially increased, and their implementation is significantly less expensive through mobile payment and both mini/full sized POS terminals.
3. Safe
While many are mistrustful of mobile payments, it can be a reassuring argument for them that not only has technology evolved tremendously but the security for handling them has increased too
4. User friendly
There are numerous consumers who no longer carry cash, relying upon only their credit card or mobile (phone) for payment. The numbers of this style of consumer is increasing daily, and it is expected to become the dominant method of payment. For these customers, even a simple card payment option can be appealing. For example a card/mobile only consumer will typically chose a store where they can pay with their preferred method. As mentioned before, consumers are discouraged by cash only businesses as this represents and inconvenience to them. Offering a cashless payment system will appeal to a greater range of consumers.
5. Hygienic
Due to the pandemic, the importance of hygiene is now paramount, therefore contactless solutions are an advantage when paying. Customers are encouraged to pay with card, as this reduces the potential cash-based transmission of viruses. Although the intensity of the pandemic has now decreased significantly in Hungary, the safety and hygiene provided by contactless payment has remained an important consideration for paying customers. Additionally the buying trends of the consumer have been forever altered to prefer card or cashless payment.
6. Brand Reinforcement
Although cash only businesses are decreasing, offering innovative payment solutions is viewed positively by consumers. In particular the mobile generation are particularly attracted to ‘trendy’ payment methods. For example, businesses who initially offered smart watch payments received a rush of transactions by consumers wanting to try it out. These early adopters were well regarding within the community, building brand reinforcement that lasts long beyond the initial interest.
Festipay and Cellum will soon reveal a revolutionary payment system!
A low-cost payment solution for freelance entrepreneurs, independent consultants, and professionals on the go will be revealed in our next blog post…