A recent study by Visa found that the Philippines was well on its way to becoming a primarily cashless economy. In 2022, only 6.4 out of 10 purchases were facilitated through cash, much lower than the 7.8 out of 10 purchases the previous year.
Moreover, the same study discovered that 82 percent of Filipino consumers used or attempted to use cashless forms of payment in 2022, which points to the possibility of the share of cash purchases further dropping in the future.
Though physical cash is still likely to remain the single most popular payment method for some time, so-called “cashless” payments through payment cards, wire transfers, e-wallets, and other similar methods may cumulatively overtake it in the coming years. And while much of the conversation surrounding the cashless movement is centered around the burgeoning Philippine e-commerce market, even physical stores’ in-store payment terminal systems are also seeing a shift to contactless forms of payment.
With payment preferences having changed so drastically, it’s now clear that Filipino SMEs have to adopt cashless payments not only to reach new customers but also to keep their existing ones. However, with a multitude of options available, it’s crucial for business owners and managers to carefully evaluate and select the right cashless solutions for their needs.
If you’re on the fence about your cashless options, we have a few tips to help you make a more informed decision:
1) Evaluate the Solution’s Compatibility
Before choosing a specific cashless payment solution, see if its features are compatible with your existing business systems and infrastructure. A lot of solutions are rather similar at first glance, but failing to understand the differences can create lost opportunities.
For instance, top payment gateway provider Maya offers two different POS terminals: Maya Terminal and Maya Terminal Lite. While both devices are portable and have similar features, the first payment terminal machine is more suited to a static POS and can be integrated into existing electronic cash register (ECR) systems. The second one is designed as an ultraportable mobile POS solution, making it appropriate even for businesses like food trucks and delivery services.
Whichever solution you choose, it must integrate well with your existing accounting software, as well as with other operational tools. By taking some time to check for compatibility, you can ensure seamless integration, saving you time, effort, and money down the line.
2) Understand Your Customers’ Preferences
Analyze your target market and try to understand their preferred payment methods. Filipino consumers have diverse preferences, with some favoring e-wallets like Maya and GCash, while others prefer credit card or debit card transactions. By knowing your customers’ preferences, you can narrow down your options and focus on the solutions that best serve their needs, ensuring a superior buying experience.
3) Assess Transaction Fees and Costs
Different cashless payment solutions come with varying fee structures and costs. Some charge transaction fees based on a percentage of each transaction, while others have fixed fees per transaction. Consider your sales volume and average transaction size to evaluate which fee structure aligns better with your business model. It’s also essential to factor in any setup fees, monthly subscription charges, or additional costs associated with hardware or software requirements.
4) Security and Fraud Prevention
Cases of cybercrime are on the rise in the Philippines, helping fuel lingering distrust of cashless systems. Given that, it’s important to assess the foundational security technologies that support the payment systems you’ve shortlisted. Additionally, you may also want to look at the providers’ track records when it comes to fraud prevention and resolution. Lastly, be sure to prioritize working with reputable providers that comply with industry standards and regulations, whether you’re planning to card payment terminals or you’re exploring online payment solutions.
5) Accessibility and Ease of Use
Whether you’re looking for a payment system or some other operational solution, it’s always a good idea to choose something user-friendly for both your staff and customers. User-friendly solutions reduce the odds of human error, increase adoption rates, reduce training time, and result in a better experience for all involved. With this in mind, it may be worthwhile to choose a simpler option that everyone can use over a feature-rich one that both your customers and staff want to avoid.
6) Customer Support and Reliability
Reliable customer support is crucial, especially when dealing with complex and potentially sensitive payment systems. Choose a payment solution provider with a good track record for prompt and efficient customer support. If possible, choose a provider that offers support on the channels (e.g. phone, email, or live chat) that you prefer.
Ultimately, choosing the right cashless payment solution for your business is a matter of weighing the specific benefits offered by different payment products and payment gateway providers. While it might be tempting to just go with whichever solution your accountant or systems administrator happens to like, taking the time to research offerings increases the chances you will meaningfully streamline your operations and enhance customer satisfaction later on. With the Philippines’ cashless landscape continuing to evolve at a rapid pace, transitioning to a better payment solution now should pay dividends very soon.
Choosing the right cashless payment solutions for your business
Source: News Paper Radio
0 Comments