If you're a tradesman visiting a home, for example, customers should expect to have flexibility around payment processing on the spot, without writing a cheque or having to deal with an internet banking transaction.
Obviously, as a business you will benefit from being able to receive payments immediately, as it means stronger cashflow and reduced administration effort.
Why do SMEs have trouble offering the most up-to-date methods?
Costs associated with payment processing, such as establishing merchant accounts or direct debit authorities, can be perceived issues that prevent SMEs from moving away from their traditional methods of receiving customer payments.
However, SMEs, perhaps more than others, need to recognise that customers have easier access to their competition than ever before via the web, so priming your business for e-commerce is crucial.
If you create barriers at any point in the purchase process - and a lack of flexibility around payment options is definitely a barrier - your customer will be able to find an alternative with very little effort and you have just lost that sale.
What is the latest technology being used and what kinds of businesses are using it?
There's a lot of hype in the mobile payments space with near field communication (NFC) technology and virtual wallets on the horizon.
Putting the hype to one side, there are plenty of examples of businesses dealing in ad hoc retail and service transactions that are successfully using eftpos/mobile terminals for mobile payment applications.
More businesses are also blending their web-facing services with their in-store experience or their face-to-face sales experience.
If I can buy online with a click or a swipe, why should it be harder when I have a salesperson standing in front of me, why should I have to fill out membership forms or wait in a queue to pay by eftpos?
Debitsuccess does a lot of work with a wide range of membership, subscription and service-based businesses, and has innovated direct debit payment technologies such as the Online Management Gateway (OMG) to assist them.
From processing thousands of memberships for the NZ Warriors, to small startups like Meatmail.co.nz, OMG is scaleable technology that helps businesses quickly and easily sign up new regularly paying customers.
What is the feedback from customers?
Ironically, the measure of success for any payment process is that the less feedback from customers you get the better, because it means your payment processes are frictionless.
Whether it's completion of a real-time payment or establishing a recurring payment arrangement, the customer shouldn't have to think about stepping out of the sale process into a payment process.
Your questions
We want to solve your business problems. From tax to recruitment, every week, with the help of specialists, we will answer your questions on any business topic. Send questions to Gill at: southgill1@gmail.com
Steven Holmes is chief information officer of payment solutions company Debitsuccess.
