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Gone are the days when cash was seen as a priority. Before, if you didn’t have the cash to spend, you hadn’t started. But today, the narrative is changing. There is a new craze for digital payments, otherwise known as e-payment. E-payment can be referred to as a collective term for any electronic payment system. It includes the use of credit/debit cards, smart cards, e-wallets (Paypal, Apple pay, etc), and cryptocurrency. 
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With the COVID-19 pandemic, the increase in online shopping and the need to operate a cashless society, e-payments have become the new normal. There are several benefits of e-payments, which should be fully exploited. However, there are still some limitations to it.  In this article, I will be discussing the advantages of e-payments and the limitations that can be experienced.

  • Improve sales

There are certain barriers that can come from making use of cash. For instance, if a customer comes to purchase an item and suddenly realizes they do not have enough cash to pay for the item, e-payment will come to their rescue. The shop owner will probably ask for a transfer, the use of the POS or any other e-payment system that is obtainable. To a great extent, this improves sales, since it is a flexible alternative.
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No longer will businesses miss being patronized by customers who do not choose cash as their preferred method of payment.

  • Recurring payments

Have you tried to buy a product online and entered your Mastercard/visa card details? Did you notice there is always an option to save those details? That’s right! That is a deliberate effort to make you keep coming back for more. Businesses can structure their e-payment platforms, whatever they are, to make room for recurring payments. This will help prompt their customers to keep buying from them.

  • Speed

Payments made through e-payment technologies occur with the speed of light. There is no process of counting money or trying to look for where to get cash. Payments are made instantly.
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In a world where everyone is seeking the easiest way out and the fastest way to do everything, e-payments come in handy, as businesses get paid by foreign customers and those that simply place orders from the comfort of their homes.

  • Competitive advantage

Most definitely, businesses that opt for e-payments usually have an edge over their competitors. From the previous points, you will realize that e-payments have a way of simplifying people’s lives. So, do you think they will want to go for the perceived difficult route? Absolutely not. The market is sweeter for businesses that have the option of e-payment than for others that hold on to strictly cash payments.

  • Limitations

Although e-payments have this air of perfection, there are certain questionable aspects to them. Many people fear safety in terms of online payments. Though there are sophisticated encryptions that guide e-payment platforms, the issue of cybersecurity remains a point of concern. There have been some records of online fraud, as regards payments. Sometimes, it is also difficult for people to part ways with only-cash payments. There is this need for proper sensitization, as this could serve as a barrier to the flourishing of e-payments. Asides from these, e-payments have come to stay. They tend to simplify our lives and help businesses grow without so much hassle. Featured Image Source: Business Today NG
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This article was first published on 6th June 2022

chidiogo-akaelu

Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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