What are the advantages and disadvantages of online payment platforms?
Online Payment Platforms are online services that allow users to purchase goods and services from retailers, either directly or through a third-party intermediary. Online payment platforms offer many advantages both for retailers and consumers, and some disadvantages to both. However, it is important to be aware of both the benefits and drawbacks of these platforms if you use them.
Advantages Of Online Payment Platforms
1. Helps you save time
One of the most obvious advantages is the time savings associated with online payments. This applies to your practice as well as the patient.
When patients can pay automatically online, your practice saves time on administrative responsibilities. I’ll go into more detail about this under the other advantages, but it decreases the amount of labor you have to do while collecting payments.
For example, if patients may sign up for paperless billing, you won’t have to spend as much time on printing and sending. It also saves time for your front-end personnel by reducing the number of payments taken over the phone or in the office. Patients save time by making payments online. They won’t have to contact your office to pay their account over the phone. They also save time by not having to write a check and go to the post office to purchase a stamp and mail the bill.
2. More Effective
Traditional solutions are far less efficient than these computerized gateways. Snail mail, as you can see from the two examples above, slows down the process for everyone. It is not as convenient for anyone if it takes more time.
Because more Kenyans own smartphones, they can pay their bills at any time and from anywhere. People are more likely to choose the option that is faster and more convenient for them.
3. Reaching out to international audiences
Online payment platforms are widely used by businesses to perform their daily transactions. As an online merchant, your product is available to a far larger audience than simply your own countrymen. Many online customers prefer cross-border purchasing, and one of the key benefits of digital payments is the ability to broaden your sales reach to these worldwide, hungry audiences.
When compared to traditional methods, where the seller may have to verify the integrity of the cash payment or deal with the expenses associated with a failed check, accepting online payments carries fewer financial risks for the merchant.
Patients save time by making payments online. They won’t have to contact your office to pay their account over the phone. They also save time by not having to write a check and go to the post office to purchase a stamp and mail the bill.
5. Theft risk is minimal.
In the business world, the expression “cash is king” is well-known, although this king has had significant drawbacks. Furthermore, when depositing cash into your bank account, you must use extreme caution.
However, if your company uses a secure electronic payment system, this danger can be reduced. You won’t have to worry about your payment history if you use it. At the end of the day, you may easily acquire an exact record of all your transactions.
6. Labor Costs are Reduced
Not only do you save money on goods, but you also save money on labor. Your team can focus on other responsibilities because you don’t have to spend as much time printing, mailing, or answering phones.
7. Quick & Simple Setup to Increase Sales
Setting up an option to accept online payments is simple and quick, and you can start selling right away. Furthermore, there are a plethora of service providers today who offer low-cost programs with no startup fees and inexpensive transaction rates.
There are so many digital payment solutions available that patients have a wide range of options for managing their debts. If you’ve ever received a paper statement, you may have noticed that the company only accepts a limited number of credit/debit cards, cash, or checks.
Disadvantages Of Online Payment Platforms
Online payment platforms are not without their drawbacks.
1. Hidden Transaction Costs
Transaction costs are what you will need to pay for each transaction. When creating an online business where you offer goods or services, you need to consider the cost of every service involved.
While they may be convenient, they often come with hidden costs that consumers must bear.
For instance, this convenience can result in people paying high processing fees or high ATM withdrawal fees.
Despite the fact that online payment platforms have excellent levels of security, like any other technology-based system, are vulnerable to hacking and fraud.
Cybercriminals are likely to utilize phishing techniques to get IDs and passwords, even if systems are not directly attacked. Once a hacker has these details, online payment platforms allow them to make repeated payments before the legitimate account holder becomes aware.
3. Reliance on Telecommunication Infrastructure
The necessity of relying on telecommunications infrastructure Due to internet and server difficulties, online payment options may be unavailable.
We believe that our discussion of the pros and drawbacks of accepting online payments has demonstrated that the benefits much outweigh the drawbacks.
Whether we’re talking about small micro businesses or large corporations, finding the correct online payment provider will offer access to additional company capabilities and operational efficiency.
In the near years, online payments are projected to become the standard, and recent economic times have only hastened this trend. Include alternatives to accept online payments in your business to keep it current, and you’ll gain the rewards that come with it.
You can also read more about the top 7 best online payment platforms.