Today, businesses in all industries are under pressure to reduce risk and eliminate causes of both operational and financial inefficiency throughout their organizations. Outdated payment processes, in particular, are a major cause of inefficiency for retailers.
In this article, we’ll look at some of the reasons businesses and consumers alike are ditching cash payments in favor of mobile transactions, and how you can leverage this trend to reduce risk and increase your business’s operational efficiency.
Manually counting cash, checks, and card statements are time and labor intensive on your staff, which can lead to data entry errors. Electronic payment systems provide more accurate payment data and make it possible to automate disbursement, receipt, and payment processes. This helps retailers maintain better financial data and is highly effective in minimizing—or entirely mitigating—disputes with vendors. Electronic payment systems also make the financial supply chain more transparent, which facilitates proactive decision making that’s informed by verifiable data. Management can also access the latest reports, snapshots, and end-to-end historic financial information.
Before electronic payment processes were available, incidences of fraud within companies were much higher than they are today—tracing cash, check, and card payments were far more difficult. Thanks to the real-time financial information that electronic payment processes provide, retailers have far more visibility into where their funds are going, and any suspicious activity can be identified and flagged immediately. Best-in-class b2b payment solutions are also highly secure, which lowers the risk involved with handling cash or check payments.
Safety Hazards And Sustainability
Cash-in-transit vehicles can have financial risk further down the chain. Regular trips to the bank mean you’re spending more on fuel—and contributing more to carbon emissions—than you need to. The cashless nature of mobile payments eliminates much of the financial risk associated with traditional payment methods and removes the need for constant trips to and from the bank.
A less obvious benefit of mobile b2b payments is that they are faster and less cumbersome than card or cash payments. The fast checkout times and user-friendliness that come with online shopping has made customers impatient to wait for lengthy card transactions or for cashiers to count out change. Mobile payments are the perfect counter to this. Wired ran a great article on the shortcomings of chip-and-pin cards that you can read for some more information.
Replacing printed invoices with digital ones wherever possible is also worth considering. This will reduce the time customers spend at the till leading to faster checkouts and happier shoppers.