What Are Digital Payments & Why You Should Transition Your Agency Clients Today?
2020 has been one of the most tumultuous years in modern history. We don’t need to go into the details because we’re all still living through it. However, even with all the chaos this year has beaten us down with, there’s still hope on the horizon, and opportunities being created for your agency.
How can this be, you ask? News headlines are continually showing businesses closing left and right, restaurants are forced to shutter their doors, or operate at half capacity, and more bad news. Where can new opportunities be popping up?
Well, look no further than the small handheld device in your pocket – your smartphone. Mobile devices are the fastest growing tool used to access the Internet, and drive business forward. The majority of web searches are happening on mobile devices, and leading consumers to buy goods and services with greater ease.
Plus, with people across the globe practicing “social distancing”, phones are now an even larger force for driving digital payments in almost every sector of the economy.
Let’s take a few minutes to discuss what Digital Payments are, why they’re so important, and how your agency can leverage them to prosper in the years ahead.
To put it simply, a Digital Payment is the act of accepting an electronic form of payment for a good or service. Today, that can include businesses accepting credit cards, electronic checks, a peer-to-peer (P2P) transaction through a service like Zelle or Venmo, or even cryptocurrency, like Bitcoin.
For this discussion, we’ll stick to the most popular tool driving electronic payments – credit cards. They’re accepted on every continent, and the typical American consumer has 6 cards in their wallet at any given time. How many are you up to?
If you have a card in your pocket, I’m sure you’re familiar with the process of paying with a card. Although, are you familiar with why it’s so important, especially today, for businesses to be able to accept digital payments?
When VISA first got started back in the 1980’s, they ran a series of surveys about who was using their credit cards, and what their spending habits were. What they found was credit card users spent nearly 20% more per visit when compared to consumers using cash or a check. That’s pretty incredible when you think about it. Usually companies have to entice customers to spend more by offering massive discounts.
Fast forward nearly 40 years, and credit card users still spend more on average with their favorite organizations. However, the cost to accept those card payments has increased exponentially. Why? Mainly because the technology needed to support this process grown significantly more sophisticated, and the levels of fraud attacking it has as well.
To learn more about digital payments and how your digital agency can help local area businesses make the shift to accepting “contactless payments” I’ve posted a special training for you on my site.