5 Reasons Why Businesses Should Embrace Digital Payments
In recent years, Singapore has taken a sharp turn towards being a “smart nation”, transitioning and adopting cashless payment methods – leading to a humongous shift in the way Singaporeans especially, local businesses deal with making payments.
Singapore has always been extremely comfortable with the traditional method of making payments – which is via cash. However, it is imperative to understand how digitalization with regards to making payments has helped the country in numerous ways. In recent years, Singapore has taken a sharp turn towards being a “smart nation”, transitioning and adopting cashless payment methods – leading to a humongous shift in the way Singaporeans especially, local businesses deal with making payments.
A study conducted by the Rotman School of Management has found that businesses that use cash will find themselves stagnate and marginalized, left behind by competitors that have adapted to the way consumers want to do business and enjoy the business-enhancing benefits that come with electronics payments.
For businesses and policymakers that want to avoid that dismal future, here are 5 reasons why businesses should embrace digital payments:
1. Ease of Carrying Out Transactions
This is one of the major benefits that comes with digital payments – aiding the consumers by giving them an option that is safer, quicker and helps them to be free of carrying wads of cash. Moreover, online payments can be carried out without any hassle during the times of emergency as it does not require one to be physically present anywhere for the money to be paid – providing a quick, seamless and convenient way for merchants as well as customers
2. Better Way to Observe Spending
Digital payments do not only bring convenience to the able but also in terms of keeping a record of the payments done so far. When the payments are made via digital channel, it is easier to file income tax returns and easier to track and account for the expenditure.
3. Transparency and Security
Transparency and accountability are harder to achieve with cash payments because they are anonymous and difficult to trace. Digital payments increase accountability and tracking, lessening the risk of corruption and theft.
4. Option to Deactivate in case of theft or any accident
Cash payments often offer minimal to zero possibility of retracting payments once the cash is gone. Digital payments, however, have the upper hand over making cash transactions since a digital payment platform can be blocked immediately in case of theft.
5. Welcome International Visitors
Accepting digital payment means business or leisure businesses can patronise without the need for local currency.
Future of Digital Payments
Payments have evolved form the barter system to cash to card payments and now leading us into the new millennium of digital cashless payments. Change may come hard to some organizations, however resistance to move to the digital system will be grave while the digital opportunities to provide better service from better managed organizations upside are real and significant.