There has been much debate over what the future of payments holds. With so many recent advancements in payment technology, it’s an interesting debate to see who will come out on top. Mobile as point of sale? Contactless payments? Direct Carrier Billing? Without a doubt, it’s seems to be that swiping an official piece of plastic in a large machine will be something we label archaic. However, what does this mean for the small business sector? Can these advancements be any assistance to small businesses struggling with collections?
Mobile Payments: The Key to Small Business Collections?
Unfortunately, there is no one tried and true reason that customers pay late. It can be because they forget, there was a misunderstanding or they just don’t have a cash. As a creditor, there are many steps you can take to help combat all these excuses, like being extra cautious in who you extend credit to or using a stellar invoicing system so you know your customers are receiving the right payment information. However, one of the most effective opportunities you can provide for your customers is easier methods of payment. If they have the ability to easily pay you online or through their mobile device, this immediately distinguishes any checks “being lost in the mail” or the throw the invoice in a pile effect. The more simple it is for your customers to pay, the more likely they will. Not to mention, the more options you provide them will enable you to please the different array of customers you provide to.
Mobile payments are rapidly advancing and soon even the credit card will be extinct, which means checks will be even more archaic. Stand out among your competition and be one of the first to embrace these technologies for your small business. Although we can’t say which payment method will come out on top, staying aware of the market will only be an asset to your accounts receivable process. So, are mobile payments the key to small business collections? Not entirely. You can’t make a customer pay, but you can help make it easier to. Check out the infographic below by Visual.ly to start learning what’s happening in the mobile payment market.