The transaction scenario in India is rapidly evolving, driven by various factors, such as the government’s push towards a digital economy, the increasing adoption of smartphones and internet connectivity, and the emergence of new technologies and payment systems.
One of the most significant changes is the shift towards digital payments. With the government’s demonetization drive in 2016, there was a substantial push towards cashless transactions. This led to the growth of various digital payment systems such as UPI, mobile wallets, and contactless payments.
The Unified Payments Interface (UPI) has been a game-changer in the Indian payment industry, enabling instant bank-to-bank transactions through a mobile phone. UPI has gained tremendous popularity quickly, with more than 200 million registered users and over 2 billion transactions per month.
Another significant trend is the emergence of fintech startups, offering innovative payment solutions to cater to the growing demand for digital payments. These startups are leveraging technologies such as artificial intelligence, blockchain, and biometrics to provide consumers faster, more secure, and more convenient payment options. Let’s learn more about how online merchant payment is best and why as a business, you must get it!
Should Small and Medium-Scale Businesses Avoid Online Merchant Payment?
Small and medium businesses should not avoid using online merchant payment systems. Online merchant payments can be highly beneficial for small and medium enterprises as they provide a convenient and secure way to receive payments from customers.
Online merchant payment systems also offer features such as fraud protection, chargeback management, and real-time transaction monitoring, which can help small and medium businesses to mitigate risks associated with online payments.
In addition, online merchant payment systems can help businesses to improve cash flow by allowing them to receive payments faster and more efficiently than traditional payment methods such as checks or cash.
How Can Online Merchant Payment Help in Better Audits?
Online merchant payment systems can help in better audits by providing a more transparent and accurate record of financial transactions. Traditional payment methods, such as cash or checks, can be difficult to track and verify, making it challenging for businesses to maintain accurate financial records. Online merchant payment systems, on the other hand, provide a detailed description of each transaction, including the date, time, amount, and payment method used.
This level of detail can make it easier for auditors to verify the accuracy of financial records and identify any discrepancies or irregularities. In addition, online merchant payment systems often offer features such as automated reconciliation and reporting, which can help businesses to streamline their financial processes and ensure that all transactions are correctly recorded and accounted for.
Furthermore, online merchant payment systems can help businesses to comply with various regulatory requirements and standards, such as PCI DSS (Payment Card Industry Data Security Standards) and GDPR (General Data Protection Regulation). These regulations require businesses to maintain specific data protection and privacy standards when handling customer payment information. Online merchant payment systems can provide the necessary tools and controls to ensure compliance.
Factors to Consider While Selecting the right Digital Payment Platform
Selecting the right digital payment platform is a critical decision for any business. With so many options available, determining which platform best suits your business needs can be challenging. Here are factors to consider while selecting the right digital payment platform:
- Security: It is one of the most important factors to consider when selecting a digital payment platform. Look for a platform with strong encryption and authentication measures to protect your customer’s data.
- Fees: Consider the fees charged by the payment platform, including transaction fees, monthly fees, and any other fees associated with using the platform. Make sure that the fees are reasonable and fit within your budget.
- Payment options: Consider the payment options offered by the platform. Ensure that the platform supports the payment methods your customers prefer, such as credit cards, debit cards, and digital wallets.
- Integration: Look for a platform to integrate with your existing business systems, such as your website or accounting software. This can help streamline your operations and improve efficiency.
- Customer support: Consider the level of customer supports the payment platform offers. Ensure the platform has a responsive customer support team to assist you with any issues or concerns.
- Reputation: Research the reputation of the payment platform and read reviews from other businesses that have used the platform. This can help you determine if the platform is reliable and trustworthy.\
Which Platform Should You Pick?
It has become incredibly important for MSMEs to opt for the right digital payment platform to perform best in the market. With HDFC Bank’s SmartHub Vyapar App, businesses get plethora of features such as accepting payments via various methods, access to additional features such as payment reminders, easier digital merchant onboarding, QR code payments, and preparing as well as paying invoices on time.
In addition to these benefits, HDFC Bank is a trusted name in the banking industry, offering reliable and secure payment solutions. MSMEs can rest assured that their transactions and data are safe and secure when using SmartHub Vyapar App. So, what are you waiting for? Connect with HDFC Bank now!
Suman(Kul Prasad) Pandit is an accomplished business professional and entrepreneur with a proven track record in corporate and start-up sectors in the UK and USA. With a focus on sustainable business practices and business education, Suman is highly regarded for his innovative problem-solving and commitment to excellence. His expertise and dedication make him a valuable asset for businesses seeking growth and success.