Going Cashless? 10 Things To Know About The Evolution Of Digital Payments – Forbes

As digital payments evolve and become more commonplace, an increasing number of businesses are accepting them, with some businesses rejecting cash payments entirely. While digital payments can certainly be convenient for customers and businesses alike, its important to understand the integration process and avoid any potential pitfalls.

We asked the members of Young Entrepreneur Council for their takes on digital payments. They shared 10 things you should keep in mind as digital payment options evolve, and how those offerings will impact your business in the future.

Young Entrepreneur Council members discuss key considerations for adopting digital payments.

1. Anticipate Integration Into Daily Life

The emergence of smart appliances shows just how much payments will be integrated into daily life in the future. For example, Samsung's Family Hub refrigerator uses an app from MasterCard that allows families to order groceries directly from the fridge. Additionally, Whirlpool has a dishwasher that can order detergent from Amazon when current levels run low. What does this mean for your business? It means that consumers will expect shopping and purchasing to be as seamless as possible. As a business owner, you should expect to deal more with artificial intelligence, biometrics and increased integration of payment systems with smart devices. - Shu Saito, Godai

2. Go Digital, But Don't Discredit Cash Completely

There will always be something new. Digital wallets and mobile payment methods are rapidly evolving. This means that updates are constantly needed if businesses want to stay up to date with the latest and greatest. Constant updates to all the POS systems used by a company is no small task, especially for larger corporations. Be prepared to find what works best for your business and stick with it. Dont discredit cash; there will always be people that want to pay with cash. Some people use only cash to help them manage their finances better. Some people work in industries where they are tipped out in cash and therefore receive the bulk of their income that way. If you remove paying in cash entirely, you will likely miss out on some customers along the way. - Jared Weitz, United Capital Source Inc.

3. Listen To Your Customers

Keep in mind that there are more and more digital payment systems available, all with different benefits and attributes. Before deciding on one, make sure you have your customers' payment preferences in mind. You might want to send out a survey if you don't have this data. Choose a product that doesn't fit your needs and you won't be getting all you can get out of this payment option. - Andrew Schrage, Money Crashers Personal Finance

4. Focus On Security

Staying on top of digital trends in e-commerce is necessary for survival. However, due diligence and security measures should always be in place. It's important to protect your customers' information and your own with the right software and protocols. Make sure that you keep your software updated to patch any vulnerabilities. Stay on top of any data threats and monitor your third-party software for potential risks. Always ensure that you work with reliable and trustworthy applications that have data privacy and security measures in place. It's also a good idea to stay informed about the best practices in cybersecurity. Make sure that you inform your visitors and customers about your privacy policy. Also, ensure that you have systems in place to inform them about data breaches. - Blair Williams, MemberPress

5. Choose Your Vendors Carefully

If you decide to work with payment vendors that customers don't use or like, you hurt your chances of being seen as a credible and reliable business. People take security very seriously, and if they feel the options you provide don't keep their information safe, they'll refrain from doing business with you. Research your payment vendors to ensure you want to work with them. What do their reviews say? If they lack reviews, it means that they're either new or people don't like them. Consumers always have something to say about their purchasing experiences, so few to no reviews might be a red flag. - Stephanie Wells, Formidable Forms

6. Embrace The Trend

As time goes on, the world evolves and we find new ways to solve problems and get things done faster. Part of this is implementing more digital payment options and getting rid of time-consuming practices such as writing checks or wiring money. Just because things are changing doesn't mean it has to be a negative thing. Instead, you can take advantage of this upcoming trend by embracing it. It's about what works best for the consumer. Not every consumer is going to agree, but if the majority say that digital payments work fine and that's where the payment process is headed anyway, then it makes sense to go with the flow. Every day, more and more businesses switch to more modern solutions that resolve customer pain points, and you should, too. - Jared Atchison, WPForms

7. Consider Your Location

While it is true that digital payments are becoming the norm, it isn't wise to assume that this is the case in every part of the world. If you have a product that caters to people in different regions and countries, you have to be prepared for differences. What is well established in your location may not be the case elsewhere. There are several countries in which credit card penetration is still low. There may also be a reluctance to use online payment options as they are considered unsafe. For example, in India, cash-on-delivery is popular and a preferred method of payment. It's important to do research on the types of payments that are common in your customers' locations. You can then offer different payment options that allow them to easily buy your product. - Syed Balkhi, WPBeginner

8. Accept Cryptocurrencies Cautiously

More businesses are accepting alternative forms of digital payments than ever before, the most common being cryptocurrencies. Popular coins like Bitcoin are gaining momentum in the mainstream, but they are far from ubiquitous. One advantage of using cryptos is that you can send payment across borders without worrying about exchange rates. Cryptos also have lower fees and faster transmission speeds than traditional payment forms. They also have many disadvantages with extreme price volatility being the main one. A coin could lose half of its value overnight. Its difficult to collect payment based on a currency that unstable. For this reason, unless you are in tech or have many international clients, you should think twice about accepting cryptos until they become more stable and mainstream. - Shaun Conrad, My Accounting Course

9. Don't Miss Out On Future Opportunities

Even if your business is currently based entirely online and has no physical storefronts, you should avoid implementing payment systems and processors that completely eliminate the ability to process cash payments. You don't know if you'll be interested in pursuing physical retail locations in the future, and thats not to mention appearances at expos and other live events. Fully embracing digital payment options can still be viable in these environments thanks to services like Stripe and Venmo, but they still permanently bar access for some customers which can affect your growth. - Bryce Welker, Accounting Institute of Success

10. Be Prepared To Educate Customers

Digital payments are becoming more and more popular, but not all customers are on board yet. Before you decide to implement digital payment options, consider what your customers want. For example, maybe many of your customers are just using old-fashioned credit cards and aren't familiar with digital payment options like PayPal yet. Get feedback from your customers on what digital payment options they're interested in using before making the decision. Also, consider that when you add a new digital payment option, you need to spend some time educating your customers about the option, why you've added it and how it will benefit them. - David Henzel, LTVPlus

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Going Cashless? 10 Things To Know About The Evolution Of Digital Payments - Forbes