When people think about the transaction process, they typically think of it in terms of a consumer’s experience. People go to the ATM to withdraw cash or check their balance, to pay for groceries with a debit or credit card, and so on. But if you look at things from a business perspective—and certainly from the perspective of business leaders—the payment process is much more complex.
Businesses typically view the payment experience as just another customer touchpoint, but shifts in technology have proved that digital payment is bringing a ton of opportunities for businesses to grow faster and more efficiently.
Consumer payments have seen a digital revolution so drastic that people hardly set foot in a bank anymore, and most money transfers can be done via apps and online platforms. Contactless payment is the present, not the future of digital payments.
But business accounting and finance departments are lagging behind when it comes to adopting this payment method. The majority of transactions and processes are still done via highly manual, paper-based methods. This is both costly and inefficient in today’s world where information flows fast and businesses need to respond quickly to changes in demand and supply—from seasonal fluctuations to macroeconomic shifts.
Paper checks vs. Digital Payments
Paper-based payments are a hassle for both businesses and the customers they serve. Among a number of disadvantages, collecting and processing paper checks is an extremely costly activity for most businesses, costing between $4 and $20 to process a single check.
Not only are paper-based payments expensive, but it also takes about 15 days for a check to clear. Accounting for mail float, errors, and potential delays, you can easily spend a month waiting for payment, which negatively impacts Days Sales Outstanding (DSO) and hurts cash flow. The advancements in digital payments have led to faster transaction times, lower costs, and easier customer experience.
What are B2B digital payments?
When it comes to the current state of digital payments in India, the numbers are staggering. The World Bank estimates that by 2020, India will have 500 million smartphone users, up from 250 million in 2017. Also, by 2020, India’s online retail industry is expected to grow to $200 billion.
As online payment and commerce becomes more prevalent in India, businesses are increasingly looking for easy and convenient ways to accept and process payments. This is why Paystand has set out to make digital payments easy for businesses and consumers alike.
With Paystand’s digital payments platform (DFP), businesses can accept mobile payments via bank networks in real-time with just a few clicks. In fact, most Paystand customers can process transactions instantly – even on the same day – allowing for instant cash application and automatic reconciliation.
In addition, with a B2B digital payment gateway integration method, you can process payments extremely fast – even on the same day – allowing for instant cash application and automatic reconciliation. This process has been proven to eliminate data entry errors in a payment transaction and ensures your books are accurate.
