The pandemic spiked the demand for digital payments. Although digital natives have always preferred credit cards and mobile wallets, most older millennials and boomers only adopted contactless payments recently. Nowadays, even casual smartphone users thrive on online and digital payments.
Statistics show that 77% of POS transactions consisted of debit cards, credit cards, and digital wallets. Meanwhile, cash transactions only totaled a meager 12%. However, if you compare cash with digital wallets side by side, the latter comes second at 10%. A 2% difference isn’t unsatisfactory considering digital wallets only launched two decades ago.
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Solely accepting fiat payments downsizes your customer base drastically. Since only 12% of POS transactions in 2020 consisted of cash payments, your target market likely wants alternative payment methods as well. Businesses with tedious, limiting checkout processes often have poor customer retention rates.
Familiarize yourself with the payment methods that your target market prefers. You need a fast, convenient checkout process. Assess the types of payment methods that your regulars typically prefer, then equip your business with the corresponding POS system.
Also, compare at least three to five options before deciding on a payment processor. Calculate how the rates affect your profit margins and assess the unique features each processor offers. Every business has its individual processing needs. Blindly going with the most commonly used systems does more harm than good.
Are you having issues processing overseas transactions? Processing Card has you covered! Check out our quick piece on how to convert foreign currencies on your online payment processing system.
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
