The nature of business is changing and as such, allowing more digital interactions between the SMEs and customers. More businesses are looking for ways to set up modes of digital payments and provide seamless transactional experiences for their customers.
In making that pivot, there are factors an SME should consider, and they are shared in the major takeaways below.
Spread the integration process over a period of time
For SMEs, changing a business model to accommodate digital payments can be costly, and time-consuming. Have a strategy for what phases are being digitalized and identify which ones you need to have experts do for you.
Leverage third-party platforms where you can and measure the milestones, instead of setting out to do it all over again. Look at the value chain again and identify what the major needs of the target market are. This should inform what digital payment approach the SME decides to implement.
How frequent are digital payments made?
How often money is paid into the SME’s account is something to be considered when choosing a digital payments model. If it is daily, weekly, or monthly recurrent payments that are being managed in the business, Paystack, Remita, and Flutterwave are payment gateways to consider.
Considering how long it will take for payments to eventually get to the SME is important. The digital payment structure should be one that favours the cash flow of the SME
Who is the audience and how do they respond to digitized payments?
Understanding how the business reaches its target audience, how large the audience is and its response to online payments is crucial in making a digital pivot decision.
The business has to offer very unique services that are valuable and customized for the audience to choose digital payments for it, instead of patronizing available shops/offices near to them.
People are sceptical of online payments, particularly because of having to input card details onto another platform. It will take some time for customers to trust the SME pivoting into digital payments.
If the business has a solid presence around its target market, and has not breached trust, getting a sizeable percentage of the customers to pivot smoothly to digital payments will be easier. Partnering with trusted fintech platforms can also help in reassuring customers that their financial details and money are safe.
With digital payment, it is not the strategy but what is done with it that makes the difference to the business. The business sector is moving towards a cashless policy, and digital payments are replacing the traditional ways of making payments.
More businesses will have to incorporate digital payment channels to reach more people and get payments seamlessly. Having a plan in place to ensure the business is well-adapted digitally is important.
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