Small Business Digital Payment And Contactless Transformation – A Complete Guide For Local Business

Small businesses are the backbone of the economy and ensuring they stay afloat and relevant is important. As we move into an increasingly digital world, having a presence online is of utmost importance. One way to stay ahead is by going contactless and digital with your payments. Here’s how to do it and how it can help you.

Small business digital transformation 101 – how to offer digital and contactless payments to your customers. Learn how to use contactless payments to your advantage and provide customers with a seamless shopping experience. Make shopping easier by embracing local merchant digital transformation. Track digital payments easily and effectively with Paytrac, India’s number one payment tracking app.

Small business digital transformation is the need of the hour. For a successful business and seamless shopping experience, you need to offer your customers online payment options including UPI, wallets, QR, online payments and bank transfers. Take your business contactless and gain more customers by going digital. Connect with your customers online and transform your business. Communicate with your customer base by using and optimizing digital tools. Accept payments digitally and have the amount credited directly to your bank account and avoid the hassle of keeping large sums of money in your store on a daily basis. Digitize your payments and keep track of daily, weekly and monthly transactions easily and securely. Avoid using old school ledgers and cumbersome and tedious methods of recording incoming and outgoing payments from customers and suppliers. Read about digital transformation 101 – key takeaways of how to digitize your business and offer contactless payments. Track digital payments effectively using Paytrac, India’s number one payment tracking app.

Digital payment methods are an essential part of any business today. From e-commerce to brick and mortar retailers, from products to services, consumers expect to be able to pay without cash, through digital payment options. These include:

  • Credit & debit cards
  • UPI
  • Wallet
  • QR codes
  • Contactless payments using NFC (near field communication)
  • Cryptocurrency

Why are cashless payments gaining ground? Well, the convenience factor, for one. People don’t need to carry large sums of cash in their wallets and purses. When plastic and digital payments work just fine, why not use them as often as possible?

It’s a convenient option for retailers and local merchants as well – they can accept payments digitally, that go directly to their bank accounts, without having to worry about robbery or theft at their store. And because these transactions happen in real-time, they don’t have to worry about giving customers credit.

How The COVID-19 Pandemic Has Impacted The Economy

The current global crisis has severely impacted the economy. People are becoming more cautious with their spending, and with shops and businesses forced to remain closed for varying lengths of time, it’s a tough time for small merchants and local businesses.

As consumption collapses, business owners first have to find a way to stabilize their business – and this means adapting to the new normal. This includes offering their goods and services in compliance with government health and safety directives and going contactless wherever possible, especially with payments. Regulators, for example, are limiting the circulation of cash notes and promoting contactless payments around the world. 

According to a report from Bain & Company, the pandemic is accelerating the growth of digital payments worldwide. As per their report, they see digital payments moving up by 5 percentage points to 10 percentage points globally – much higher than what was anticipated previously.

The Growth Of Digital Payments In India

According to data from the Bank of International Settlements, digital transactions in India rose by 55% in 2018, compared to a 48% rise in neighbouring China. India’s transformation from a cash-based economy to a cashless one goes hand in hand with the growth of the UPI (Unified Payments Interface) platform, which at present processes more than a billion transactions each month. As per a KPMG report, India has around 50 UPI-based wallet providers and 45 mobile wallet providers.

UPI is a real-time payment system that was developed by the NPCI (National Payments Corporation of India) which facilitates inter-bank transactions. Funds can be transferred instantly between two bank accounts on a mobile platform.

The dynamic nature of UPI – from bank to bank and social media account to social media account – makes it one of the most convenient real-time payments systems there is. Much of this growth can be attributed to peer-to-peer (P2P) payments that used to happen in cash – but the peer-to-merchant channel (P2M) is gaining traction.

It’s two sides of the same coin: companies that operate contactless payments are pushing for more adoption, and consumers – particularly in urban areas – are finding it a more convenient way to pay and shop.

Well-known digital payment platforms like Paytm, Google Pay, PhonePe, BharatPe and others have been putting their money into advertising to capture the market early on – and it’s paying off. A report indicates that people don’t just go there for the convenience factor: the cashback and discounts they offer make them an even more attractive payment option.

Then there are NFC payments. These already work in most areas in India – it’s just a question of both consumers and retailers making use of it. NFC (near field communication,) makes it easy for customers to pay without physically touching a PoS machine. You hold your smartphone of NFC-enabled card near the PoS machine, and using near field communication, it captures the details of your card or wallet. Since it works only at a distance of 10 cms or less, you don’t have to worry about your card or device paying for the person at the next counter!

According to a statement from PineLabs, one of the largest deployers of PoS machines in India, there are around 50,000 PoS terminals in India that are NFC-enabled. That’s a pretty solid number. As a consumer, you just have to ask for it – and as a retailer or merchant, you need to train your staff on how to use it.

While germophobes have eschewed cash transactions for years, now, with the COVID-19 pandemic and the dangers it holds, consumers worldwide are opting out of using cash and looking to make more and more contactless payments. And this is just one of the reasons why you, as a retailer, should adopt and adapt to digital payments.

Why Small Business Digital Transformation Is Important

Consumers today shop differently. Armed with a smartphone, they are able to seek our products and services and do much of their research online before making a purchase. They browse, compare prices and features and do a full 360 on the product or service they are intent on buying. Consumers want the payment experience to be easy and as seamless as possible, whether it’s e-commerce or small businesses.

Daily dealings at small businesses like grocery, kiranas, medical shops, fruit stalls and retail shops are what make up the backbone of our economy. The contribution of small businesses can’t be ignored.  And it is these very businesses that need to pivot and adapt and offer customers convenient payment options that are also contactless. Keeping in mind growing mobile penetration in India, offering digital payments shouldn’t be a should-have; it needs to be a must-have.

Digital Transformation 101

Taking your business online will definitely give it a boost- but there’s more to it and just adding a digital payments option. There are few things to keep in mind before you digitize, to ensure that things run smoothly.

Customer experience: Catering to your customers and communicating with them is important because, at the end of the day, they drive your business. Your clients need to be on top of your mind as you transform your business. What kind of payment methods do you think will work for them? As a retailer you can give them the option of UPI payments from GPay, PhonePe, Paytm as well as PoS and wallets. How would they prefer to communicate? What language is most comfortable for them? As a small business owner, you need to know and understand their pain points and cater your digital offerings to their needs. Be one step ahead and anticipate their needs.

Make it functional and cross-departmental: Digitizing just one part of your business may not be enough. For example, accepting payments online but not taking orders online may actually slow you down.  If true digital transformation is what you want, it needs to be all-encompassing and affect most aspects of your business. This could mean relying on message broadcasting applications, order capturing software and digital ledgers in addition to a digital payments option.

Work in sync: No transformation can be successful if your team isn’t brought up to speed with the strategy behind it and the technology that runs it. Depending on the size of the organization, first the leadership team needs to meet, hash out the strategy and discuss any issues or fears they may have. Businesses can even turn to consultants and coaches to facilitate the process. Once a plan is chalked out, it needs to trickle down to all other members of the organization so digitization can be implemented successfully.

Digital marketing: Putting your business out there with the help of digital marketing is important to make your presence felt online. Hire a digital marketing expert or use the services of an agency to amplify your voice online, so that customers find you. A well-conceptualized and well-executed digital marketing strategy can work wonders for a company that is making the shift online.

Another way to engage with customers is to use tools like chatbots to interact with them as soon as they discover your business online. This gives them a better understanding of what you have to offer and nudges them towards making a purchase.

Small businesses can also make use of Facebook shops or websites to give leads and potential customers an overview of your products and services, along with pricing and other information.

Data & analytics: One of the benefits of digitizing your business is that you have access to a wealth of data about your products and services and customers. At a glance, you can uncover what your bestsellers are, what your customers like and dislike, where they are facing issues and how your sales performance has been over any length of time. 

You need to keep a check on your cash flow to gauge how profitable your business is. Understand the metrics over specific periods of time – that means tracking daily, weekly and monthly transaction analytics and understanding how your business has been performing over a 28-day period. This helps you make informed decisions and helps you adjust your services to meet your customers’ needs.

Choose the right tools: The other important aspect of digital transformation is choosing the right tools. First, understand what your business needs. Is it just a payments platform, or do you need something more? Do you need a tool that can help you track data or something that can help you communicate with your customers? Or do you need a product or service that can do all of the above? Understand your customers’ needs, your needs and find an app or service provider that can take care of it.

Set a budget: You need to invest in your digital transformation journey – and you most certainly need a budget for it. Once your strategy is finalized and you have chosen the right tools, you need to get down to execution. The level of execution you need depends on the size and scale of your digitization. Some businesses choose to hire offshore teams to execute their plan – which is fine. But it’s important that you set aside dedicated funding and a realistic timeline. Without a proper budget, you could end up with a lot of unwanted bells and whistles and a hefty bill!

Get Paytrac – Track Digital Payments Effectively

Paytrac is the business transformation tool you need. A payment tracking and order management app, Paytrac makes it easy for small business owners and local merchants to keep tabs on their incoming and outgoing payments and helps you organize orders.

Whatever mode of payment you accept, Paytrac can keep track of it. Paytrac tracks payments coming in from PoS, UPI, wallets, QR codes and online bank transactions. For cash, you can manually log the transaction in the “cash-in” or “cash-out” section, and add it to the digital ledger.

Paytrac doesn’t just keep tabs on payments – it also gives you a detailed breakup of which modes are bringing in more money. You can also easily view your daily, weekly and monthly payment data, as well as review the performance of your business over the last 28 days. All this is given to you in an easy to read dashboard.

To ensure that you never miss a payment update, Paytrac has a built-in audio notification feature, which alerts you each time an amount is credited to your account. This helps you stay on top of all your payments even in the middle of a busy day. Just open the app, enable audio notifications and choose your preferred language.

Paytrac has been built keeping the local merchant in mind, and comes in English, Hindi and 7 local languages, including Kannada, Tamil, Telugu, Marathi, Gujarati, Punjabi and Bengali. Choose the language you are most comfortable with and start operating!

The app also helps maintain and organize orders. Customers can send shopping lists and orders on WhatsApp, which Paytrac scans and captures. Then, all you have to do is edit and process the order in the “orders” section of the app and generate a manual receipt for the customer.

Paytrac also makes it easy for you to communicate with your customers. With the broadcast feature, you can send multiple messages to your customers on WhatsApp, Telegram, Facebook Messenger and SMS. Share information related to your store timings, delivery options, new products, deals and discounts at the click of a button. Save the template after creating your message or choose from an existing template within the app.

Whether you run a local grocery store, kirana shop, food stall, medical shop or mobile shop, Paytrac is for you. It’s an all-in-one tool for local merchant digital transformation. Download the app today to see how it can help you boost your business.

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