The payment options available for retailers include cash and credit cards. Those are the most common types, but if that’s all you have, you could be losing customers who prefer to use other methods when shopping.
You may be losing revenue simply because you aren’t accepting all payment systems. With the advancement of many industries these days, people have adapted to a more diverse and flexible way of paying for goods and services. The best alternative for merchants would be to adopt as many payment methods as possible. If your POS system is flexible, you don’t have to worry about incorporating more methods into your processes.
Here are different ways your fashion business can process customer payments in 2021:
The best payment method is cash because it’s the most basic way of exchange, and you don’t have to go through multiple payment procedures or fret about charges. Even though credit card payments have increased significantly, approximately 14% of Americans still favor cash payments.
In some parts of the world, the distrust placed in banks and credit cards is higher than in North America. The Japanese, for example, pay around 25% of their online purchases in cash to minimize surcharges.
Cash transactions are not without complexities. However, there are few downsides to allowing customers to pay with cash. There will be some fraudulent possibilities of receiving fake money or having not enough small bills to provide a change of their big bills.
Nonetheless, disadvantages aside, you and your customers will still benefit a great deal. Cash is relatively easy to carry around and convenient to use anywhere. It can be used quickly with no additional procedures needed as long as you have enough money. It doesn’t involve any fees, so both the buyer and seller can be happy in the end. It’s still typically acceptable to accept cash payments in fashion retail, and there are nearly no disadvantages to it.
Credit and Debit Card Payments
It has been a while since the invention of credit and debit cards, but their use has not diminished at all. In fact, data from BAI Research and Hitachi Consulting indicates that 41% of consumers use cashless methods frequently, and most of the consumers surveyed prefer to use credit or debit cards instead. Due to this data, it’s understandable why credit and debit cards have become commonplace. For retailers to stay competitive, they must do more than the bare minimum.
Despite this, debit and credit card payments offer a lot of advantages for consumers and retailers alike. Using a credit card instead of cash results in consumers spending more than with cash. That’s something the Girl Scouts of America found out when the implementation of mobile credit card swipers quadrupled their cookie sales over the previous year.
One of the advantages of using credit or debit cards is that they could lend stores a sense of reliability, and they may be perceived to be in the now. People find these establishments being modern and up to date with the times.
It also increases sales overall since many consumers forego cash. These sales are also automatically deposited to merchant’s accounts, which then eliminates possibilities of theft and mishandling. Perhaps the only downside is the fees that companies charge for card transactions. However, some companies eliminate card processing fees; click to find out more about it.
COD Or Cash-On-Delivery
Payment via COD is a straightforward process. Consignments are delivered to their consignees in cash as the invoice amount. After the money is collected, the e-commerce company that processed the order deposits the funds at its local office. Hence, the fashion business can gain its sales through their accounts, resulting in both parties being conveniently satisfied with this method of payment.
For a seller, cash handling involves few complicated processes and is relatively straightforward. As a result of COD, there are no issues concerning payment failures, as the profit is acquired instantly. According to a buyer’s point of view, a cash-on-delivery option is preferable since payment is made only when the goods are obtained. Furthermore, the buyer may also refuse to accept packages that are damaged or wrongly delivered.
During this process, payments can be delayed until the delivery of the ordered product has taken place. This reduces the risk associated with online payments. COD offers many coupons online, which makes it one of the ways to save money when shopping.
Mobile Application Payments
Mobile and smartphone payments are another payment method increasing over the past few years. The smartphones use a small magnetic stripe, and that is what we call contactless payments or mPOS.
In-store mobile payments are expected to reach 150 million by the end of 2020, according to Business Insider’s Mobile Payments Report. If that number is accurate, then 56% of U.S. consumers are already using mobile payments. Several reasons have contributed to the growth of mobile payments: one is because of people’s natural adaptability to innovations. Many have tried and stuck to using mobile application payments because it’s convenient and reliably safe for them.
A retailer accepting mobile payments can also reap the benefits of being fast and convenient. There are some cash flow advantages, which means the funds can arrive in your bank account within three days after the sale.
The best feature of this method is that people can track down their money transactions. They can control how much they spend, and merchants can also engage with customers by sending ads, discounts, and updates. Moreover, there are many ways mobile payments can change customer interactions.
You should determine which payment method best suits your fashion business. Keep in mind that applying different payment systems will keep your head on the game, enabling you to compete with others that have already immersed yourself into several options. Before taking a leap into applying a specific system, though, ponder your options first and set up the process in an organized manner.
A variety of payment options is available, including PayPal, credit cards, checks, mobile applications, and self-hosted payment pages. Many solutions are preferred because they are flexible or easy to integrate. It’s all up to you which payment solution you choose for your online or physical clothing store. At the end of the day, the most important thing is to adapt to many different payment methods to generate more sales and clients.