Use alternative payment options in your business

alternative payment options

Consumers can use a variety of payment methods for purchases at small, medium, and large businesses in the United States and around the world. Options include more traditional or conventional payment methods, as well as what are known as alternative payment options.

Offering more payment methods to your customers could translate into more sales for you, so it might be worth considering which options attract the most to your customer base. I defined an alternative payment as a payment method that is outside the market for traditional or conventional payment methods.

I consider traditional / conventional payment methods to be the most popular and widely used forms of payment today in the United States and global markets. This includes: cash or checks at the point of sale or mailed; credit or debit cards processed through landlines, wireless phones, computers, or Internet terminals; and ACH and wire transfers.

If you are wondering if other payment options would work for your business, here are some options you may want to incorporate to give your customers the best point of sale convenience experience.

Installment payment programs for consumers

This is a payment method where, as a merchant, you can establish partnerships with various consumer loan platforms that can help you close larger sales with customers. You sign up with one or more consumer loan platforms, which requires approval, then when customers are looking to make a purchase, say 2,000 us dollars, they would fill out a very short online loan application while they are at the point of sale at your location.

Approval (or downgrade) comes from one or more consumer loan platforms in seconds. Once approved, the terms will be provided and the customer can decide to accept or reject the terms, including how much interest they will pay. The loan would be used to pay for the related 2,000 US dollar product or service from your location. This program helps you close larger items and also provides greater convenience for customers, allowing them to spread payments for your products or services over six, nine, 12, or 24-month installments.

Payment options - Cash on delivery

For this payment method, a customer orders a product, but payment for that product does not occur until a mail provider delivers the items to the customer. The customer would pay on delivery instead of paying in advance. This provides greater convenience to customers who want to inspect items prior to purchase.

Some customers may prefer this type of transaction to credit or debit cards. However, keep in mind that when accepting payments to be processed, it means that your payment is delayed. You should also consider the possibility of a higher rate of returns or canceled orders. However, you may find that the benefits outweigh the risks if this model is popular and makes sense for your customers.

Mobile payments

Electronic commerce has been one of the great IT revolutions of recent years, marking a before and after in the purchasing habits of Spanish citizens. In addition, these changes led smartphones to become the most widely used device not only for communicating, listening to music or taking photos, but also for making payments.
Mobile payments are the set of services that allow financial transactions through cell phones, either to buy products and services or to transfer money between two individuals - both online and in person at stores. The latter are also known as proximity payments and can be made in different ways: by SMS, embedded credit cards or with a web browser enabled on a smartphone with NFC technology. However, most mobile payments made in the United States are made through web browsers or applications.

With NFC, you will have a contactless terminal that allows a customer to move their Apple or Android phone or device to the front of the computer to process transactions. For in-person transactions, the business must set up a contactless payment terminal through its payment provider. The customer's credit card information is already stored on their device, so the transaction can be processed without the customer having to hand over their card or carrying their cards in a physical wallet or purse.

Digital wallets are programs like Google Wallet, which are online programs that allow customers to register using their phone number or email. Once registered, the customer receives a PIN code and is allowed to enter their credit card information into the online program for storage. While on various merchant websites or in person, the customer will be able to make payments using the digital wallet by verifying such payments with their unique PIN code.

Cryptocurrencies

A cryptocurrency is an alternative digital currency that operates on a decentralized transaction database, which is a very different type of operation from traditional money, which operates on centralized banking systems. The acceptance of payments with cryptocurrencies provides greater convenience to customers who can carry this type of currencies. Bitcoin (created in 2009) is the most popular type of cryptocurrency, with a market cap in the range of $ 12 billion.

Accepting cryptocurrencies can potentially increase your sales, especially if your clients or prospects prefer this payment method . The cryptocurrency market comes with its own special set of risks, particularly in terms of security and exchange rate volatility. It is important to know well how to manage those risks before making this an option for your clients.

In case the client needs cash, he can also alternatively look for personal financing, and if his question is Where to ask for a loan? You should know that, in the Spanish market, there are a good number of financial houses that can help you.

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