There’s no doubt the pandemic has left us all in dire straits. Even if it goes away in a year or two, the virus’s damage will leave behind is unprecedented. All the sorrow is incomparable. At the last look, the number of COVID-19 deaths was nearing 4 million worldwide, and confirmed cases were closing on the 180 million mark. Surely, that’s not something anyone can ever forget in a lifetime.
But if there’s one good thing that has come out of such a harsh reality, the digital transformation would be top of that list. Just a quick look at how remote work has become the new normal of many corporations is telling. Put in the mix remote learning and digital health, and you know digital has made a huge contribution to society’s progress these days.
Indeed, be it in real estate or healthcare, digital is a shot in the arm. And yet, one of the largely unexplored ways digital can help entrepreneurs is digital payments. While you may have made the most of digital to connect with banks and other financial institutions, there is a slew of ways to rely on digital in transactions to boost your business.
If the thought is confounding you, fret not. We’re showing you ways how digital payments can help expand your business. That way, you can edge closer to a seamless business operation and profit handsomely thereafter.
How Digital Payments Can Help an Entrepreneur
In the age of the virus, the handling of physical money may be a huge liability. For one, concerned about the spread of the virus, a Chinese bank decided to take matters into their hands and disinfected cash. That may sound funny, but it’s true.
The good news is WHO has not issued any directive or advisory to ban the use of cash as a means of commerce. Of course, the virus can’t penetrate the skin of our hands.
Still, digital payments can give everyone benefits beyond that of combating the virus. To boot, you increase your bottom line as you reduce operating costs when using online payments. That’s because it would be a lot easier for you to manage contracts, accounts receivables, and delivery records.
That also means receiving and making payments is a lot easier. As an entrepreneur, digital payments allow you to participate in e-commerce transactions easier. In the long run, you drastically improve your interactions with all financial institutions you transact with.
Think about it. With digital records, it’s a lot easier to manage your company’s inventory stock. Everything is traceable and as accurate as can be. That helps you make faster procurement decisions too. It’s a cinch for shop owners to track sales according to product type and corresponding day of the week. Indeed, that easily traceable electronic trail makes it easier for everyone, be it vendor or clientele, to track payments.
Then again, if you have trouble with your overall financial well-being, talking to a reputable financial advisor. By doing so, you have an expert to help you achieve your financial well-being. Far too often, many entrepreneurs could be handling their finances, personal and business, haphazardly. A financial consultant can give you the big picture and show you better ways to reach your financial goal, whatever that is.
There’s the case for compulsory filings. With digital payments, you lower the usual cost of tax compliance. You can use e-filings and e-payments to process license fees, property taxes, registration fees, and income taxes, for example.
How Digital Payments Help Workers
For starters, it can save time and money. When payments are distributed via digital, distribution costs can be largely minimized. In Bangladesh, for instance, digital payments cut these costs to as much as 50%, a study shows. They also help employees. Instead of working, employees will have to leave their production lines and line up to receive payments.
Plus, it’s easier to track the accuracy of payments, paving the way for easier audits and management.
Then, there’s the case for security. With electronic wage payments, employees can use e-wallets to store their money. They don’t carry cash and can withdraw the money anywhere they think it’s safe.
That also means digital payments draw millions of people closer to banks and other financial institutions. In the process, it allows these people to be more financially literate.
How Digital Payment Provide Better Access to Credit
A digitized financial service can help an entrepreneur access credit, too. If you’ve never banked before and don’t have the guarantor or collateral, your digital footprint can be a way for you to get a good credit standing.
By analyzing your online transactions, can build your credit score. We’re talking about your digital payments from customers and to suppliers for one. That’s how American adults who were initially “unscorable” got a better score. By looking at telecom and utility payment histories, for instance, the “unscorable” part was reduced from 12 percent to 2 percent in the Land of the Free allowing them better loans in the process.
Digital payments don’t have to be a hinder to one’s business. It can also be a way to make things convenient for both entrepreneurs and consumers.