A new sneak peak from Visa Inc. revealed insights businesses across all industries should pay attention to. According to their data, U.S. debit volume increased 31% in January and 16% in February compared to the same months in 2020. Meanwhile, credit volume dropped by 6% and 8% respectively.
What Does This Shift Mean for Businesses?
There is a continued shift in digital payments. While some payment types are experiencing great growth (like debit cards), others are lagging behind (cash and credit cards). If they haven’t already, business owners need to invest in technological capabilities – and pay close attention to further changes and preferences in payment processing methods.
Douglas Mearkle, head of merchant solutions sales at TD Banks, explained the situation the best: “In the case of contactless payment before the pandemic, businesses had been trying to drive consumer behavior. But during Covid, it was the consumers who were demanding it as the safer way to pay.”
In short, companies are quickly realizing the payment technologies they’ve been using to survive the pandemic and cater to consumers’ concerns will be beneficial long after the crisis has subsided. Below are just a few of the ways businesses stand to gain from these technologies and trends.
- Immediate payment
One of the top challenges for business owners is cash flow. Thanks to digitization, people are able to make payments faster and easier than ever before. This significantly increases the speed in which businesses receive their payments.
- Attracting customers
Offering digital payment options gives businesses a competitive edge. Not all businesses have jumped on board with digitization, giving those that have an advantage. Customers today expect and prefer to have digital options when they shop in-person and online.
- Wealth of data
Everything today is about data. Going digital provides businesses with a wealth of data they can use to create even better customer experiences and strengthen customer relationships. These insights can also serve as a competitive differentiator.
How to Provide More Payment Processing Options
If you’re wanting to add more payment processing options, but are unsure where and how to start, the key is the provider you choose. You need to partner with a reputable payment processor that has years of experience and a full suite of options. They should also specialize in working with your business type and industry.
This ensures they understand the challenges you face, trends that are shaping your industry and your customers’ growing needs. Making sure you offer the best payment processing options available will help you fuel growth and sales both now and long into the future.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor and high risk merchant account provider in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.