Digital Payment Alternatives to Cash and Paper Checks
Due to the COVID-19 pandemic, many merchants and customers have shifted to digital payment methods to avoid infection risks. However, this shift has also presented an opportunity to explore alternative payment options to paper checks and cash.
Since the coronavirus outbreak, merchants and customers shifted to digital payment methods. This was to avoid infection risks, but this changed to prevent any lasting impact on revenues.
US businesses process more than $12.5 trillion in paper checks annually. This disruption comes at a high cost and represents potential business losses.
If you're looking for alternatives to paper checks and cash payments, here are a few options to take your business to the next level.
Alternatives to Paper Checks and Cash
Several alternative payment methods are safe, efficient, and easy to use. Their usage and processing costs are often inexpensive and include perks like zero-fee bank transfers and enhanced security.
- Credit Cards (Virtual Terminal). Virtual terminals let you charge cards from your computer without a swiper. You only need internet access; your mobile device becomes a credit card terminal. With tokenization, payment methods are securely vaulted for later use (recurring payments).
- Digital Bank Payments (Paystand / OBeP). Paystand offers zero-fee digital bank payments that move money digitally from one bank to another. Customers can log into their bank account and pay via an online portal. This method is highly secure since customers can't share sensitive personal data.
- Electronic Funds Transfer (EFT). An EFT is a transaction processed over a computerized network between same bank accounts or to accounts at separate institutions. A person or a business can start EFTs and only requires a good-standing bank account.
- Electronic Check (eCheck). An eCheck is a type of EFT that relies on the Automated Clearing House (ACH) network to process payments. Funds are electronically withdrawn from the payer's account, sent via the ACH network to the payee's banking institution, and deposited into their account.
- Mobile Wallets (Apple Pay/Google Pay). Mobile wallets are consumer-facing payment systems. They allow contactless payments using NFC (Near Field Communication) technology. They're used for online purchases straight from an app or website. The checkout process can be pre-filled with defaults and only requires a customer to verify their PIN or Touch ID to complete the transaction.
- eCommerce Wallets (Masterpass/Visa Checkout). eCommerce wallets are typically used in B2C transactions. Customers can store credit or debit card information and then use one login to pay for items online. When they check out, they can select Visa Checkout or MasterPass, and log into their account. They are then returned to the merchant's website to complete the transaction.
- Stored-Value Wallets (Alipay). Stored-value wallets allow users to 'top-up' their mobile money accounts. These services' popularity is growing internationally, enabling users to connect wallets to perk programs, app ecosystems, and larger eCommerce platforms.
Get Started with Digital Payments
Do you need help setting up digital payments for your business? Paystand makes it fast and easy to get started. We integrate with most ERP software systems and offer flat-monthly pricing to keep your costs low and predictable.
If you want to get started with digital payments, book a free demo with one of our payment experts. We're happy to point you in the right direction.