Choosing which payments to accept when starting up a business is an essential factor of your preparation. In today’s world, customers like to be presented with a range of different options for making payments, so the more that you have on offer, the better.
People prefer to pay by a number of different means, whether it be with cash, a card or an online payment system such as PayPal. Of course, the payments that you are able to accept will vary depending on the type of business that you own.
However, having more payment options does a lot for your reputation and shows that you’re up-to-date and modern. Let’s have a look at the different payment options that you could offer.
Paying with cash
Paying with cash is a traditional method that never gets old. If you run a bricks and mortar store, you should accept cash payments as standard. Many customers still prefer to pay for their purchases in cash, as it’s more secure than paying with a debit or credit card, there is no electronic transaction involved and no need to enter bank details or worry about anybody seeing their PIN number.
Credit and debit card payments
If you run an ecommerce store, the option to pay with a credit or debit card is a must. Physical stores may be able to get away with not accepting card payments, however it’s good to be aware that this could have a detrimental effect on your business and you could even lose sales.
Thanks to the convenience of paying by card, today’s customers often choose it as their preferred method – there’s no need to go to a bank or ATM to take out cash, and no need to carry large amounts of cash on their person.
When launching your startup, you should seriously consider the implications of not having card payments as an option. With the vast majority of businesses accepting credit and debit cards as a means of payment, not doing so could make you look like you’re behind the times and less modern, which could put some customers off.
Not only that, but you could lose custom to your competitors if a customer comes to your store and doesn’t have any cash on their person. Card reader equipment is easy to get hold of and set up.
PayPal and online payments
If your business operates online and you have an ecommerce store, it’s a good idea to offer PayPal as another option as well as paying by card. PayPal is a firm favourite amongst many online shoppers, as it offers convenience and security.
Many people who shop online still worry about entering their card details on an ecommerce store website, which is where PayPal comes in handy. With their banking and card details saved within their PayPal account, customers won’t need to enter any of their personal financial details on your site when checking out with PayPal.
Thanks to the heightened security offered by PayPal, many online shoppers won’t buy anything online unless they can use it, so it’s a good idea to consider it at a payment option when launching your startup.
If you provide a service, for example mobile hairdressing, you could also use PayPal as an option, which could come in handy if your customers don’t have cash on them. PayPal also has a handy mobile app, which makes payments to other PayPal users quick and stress free.
Cash, card and PayPal should be strongly considered as the three main payment options that your startup business accepts. However, there are also a range of other payment options that you might like to also think about offering in order to give your customers a larger choice.
You may want to consider accepting the personal check – although this is decreasing in popularity, some people still like to pay by check and since many businesses no longer accept them, you could actually be doing yourself a favour by allowing customers to pay by this method.
You might also want to consider accepting bank transfers, depending on the type of industry that your business operates in. Vouchers and coupons are also another payment method which you may want to offer to your customers.
With the range of payment options available to choose from, picking just a few could be a bit of a task for you. You might find it helpful to conduct some research beforehand to discover which payment methods your customers would prefer to use.