It’s no secret that e-commerce has experienced a rapid surge over recent years, reaching a nearly 50% user penetration rate for digital commerce in 2020, and more skyrocketing growth throughout and following the COVID-19 pandemic.
During the quarantine and subsequent lockdown period, the number of customers registering for mobile banking rose by 200%, and mobile banking traffic increased by 85%.
Due to this incredible growth of online transactions, company owners can no longer deny the advantages of implementing e-payment systems. Years ago, this may have been seen as an optional luxury. Now, being able to accept online payments has become a mandatory prerequisite for companies of all sizes.
Here’s what you need to know about switching to an e-payment system, and how doing so can benefit your business.
Minimized Risk and Faster Payments
One of the biggest perks of using an e-payment system is that online payments come with lower financial risks, whereas traditional payment methods offer little security. Plus, with traditional transactions, the seller may have to verify the integrity of cash or check payments, which can be unnecessarily time-consuming.
With e-payments, processing is nearly instantaneous. A customer’s payment can be immediately deposited into the required account, taking as little as two or three days to be cleared.
E-payment methods and systems are also more diverse, allowing customers to pay using a variety of methods including ACH, check, and vCard.
Not only goes this gives the merchant better control over spending, but these payments are often tightly regulated, offering a greater level of security.
Reduced Transaction Costs
Collecting and processing paper checks can be an extremely expensive and time consuming activity for companies and their suppliers. On average, it costs approximately $15 to send a manual invoice and $5 to process a single paper check.
By comparison, electronic payment methods take place in an automated environment, translating to reduced processing costs for your company. Most digital payment systems have the advantage of no upfront cost, and transaction fees for sales recorded on their site are typically low.
Incorporating e-payment options into your business’s account payable process allows your AP department to gain full visibility into processing while saving money on every invoice.
Improved Suppler Relationships
Amid today’s industry-wide supply chain disruption, supplier relationships are more crucial than ever. While processing paper checks takes time and money, e-payment methods are fast, transparent, and secure—giving suppliers greater peace of mind.
Plus, with e-pay, suppliers can gain full visibility into their payments and transaction details, so they have confidence they are being paid both consistently and on time.
What’s more, implementing an e-pay process can reduce the number of late and incorrect payments, therefore reducing the number of supplier inquiries to your AP department. And considering that more than 40% of AP teams spend 6 hours each week answering vendor questions regarding payments, that is a considerable time and money saver for your company.
As the global marketplace experiences increasing competition, ensuring strategic relationships between vendors and corporations is essential. When crises arise, a strong working relationship can secure your spot at the top of the list for delivery. Likewise, when an order needs to be expedited to keep production on track, a formidable relationship with a supplier can mean they go the extra mile to make sure your order is taken care of immediately.
Why Choose BirchStreet Pay
Regardless of your company’s size or business activity, a variety of factors must be considered when exploring electronic payment services and solutions.
At BirchStreet, we offer a specialized e-payment solution called BirchStreet Pay, which harnesses expert technology to provide multiple secure payment options through ACH, check, and vCard. Thanks to its smart-pay nature, BirchStreet Pay aims to simplify the procurement process across multiple departments and locations according to your business needs.
Plus, the solution gives you real-time visibility into all spending and compliance features, so you can ensure all transaction details are accurate and suppliers are paid quickly and securely. Finally, BirchStreet Pay provides customers cash back which enables them to use the BirchStreet P2P platform at no additional cost!