Does Your Business Stand To Gain From Same Day Payments?
If you’re running a small business then you’ll know how important cash flow is, and waiting for a customer’s money to clear in your account quickly can make all of the difference. In this article we look at the benefits of same day payments and how they can help your business grow.
Same day payments have become a common feature and a great number of businesses have incorporated it into their pay-out systems in the last year or so, but is it something that your particular business stands to gain from? As it happens, whether you are trying to streamline your payroll, or you are looking to build better business relationships with your supply partners, same day payments are critical in both situations. However, in order to answer that question in more details, let us now go through the types of businesses that stand to gain the most by adopting faster payment systems – and why.
Peer-to-Peer (P2P)
The P2P or peer-to-peer business model is one that connects individuals that have matching interests with each other. Some famous examples of such services include OLX, Bitcoin, IndieGogo, Skill Share, Betfair, Airbnb and many others in various other genres. Since people often deal with other individuals or very small start-ups via these services, it builds trust if the payment is processed as quickly as possible. Fast payment processing also makes way for uninterrupted business, so it’s a real win-win scenario for both P2P businesses and the parties who use their services.
Business-to-Business (B2B)
The benefits of same day payments are felt most by companies while dealing with other businesses. For example, if your business relies on suppliers, you will see an improvement in their speed of sending you supplies when you adopt a faster payment system. When a supplier knows that they will be receiving their dues the same day, the urge to provide the buyer with faster shipments is quite understandable and expected in trade. However, a big concern that comes with fast payments is that they do cost a lot since most services generally charge you for each payment they process.
This is why B2B businesses do better with a service like AccessPay, which only charges a yearly subscription fee and not a percentage of every fast transaction that you process through them. Check out their same day payments service at this address: https://www.accesspay.com/our-solutions/same-day-payments/ to find out the details because they also have a number of other customer-friendly policies, which makes the platform very useful for almost all types of businesses, irrespective of the scale or business model.
Business-to-Consumer (B2C)
The effects of fast pay-out options in B2C businesses have proven to be particularly beneficial in the insurance sector. During emergency situations when money is required by the client as a matter of urgency, some insurers are unable to pay out as quickly as they should. Natural disasters like storms and floods often leave people homeless and in desperate need of money. Since insurance companies now have the option to quickly provide the funds their customers are eligible for in such emergencies, the insurance business has experienced a boom. From the consumer’s point of view, it makes more sense to trust an insurance company when it has a reputation for fast insurance disbursements.
The same holds true for a lot of other sectors as well. Consider the e-commerce scene, where customers are often refunded for returned products or faulty service. It goes without saying that consumers will prefer to deal with an e-commerce site that offers fast, same day refunds than ones that make them wait for days, if not weeks.
As you can see, most businesses stand to gain from faster payments, albeit for varying reasons. From certain perspectives, it can be considered to as the equivalent of cash payments in the modern age, but better, as it eliminates the human error element from the equation altogether. Getting access to due money faster always accelerates work and improves business relationships. Therefore, to answer the question in the title, it can be said with assurance that if your business falls within any of the categories above, adopting a same day payment system could certainly benefit your business, as long as you go with a platform like AccessPay, which allows for fixed annual payments, rather than charging you for every transaction. While faster payment is the right way to go, it also needs to be sustainable, or else it becomes impossible to make it profitable.