Thanks to a surge in both the nation’s e-commerce and cashless payments sector, the Philippines has become one of the fastest-growing digital economies in the region. And while traditional cash exchanges are still the single most dominant payment method in the country, there’s a high likelihood that cashless payment methods will catch up before the end of the 2020s.
With fewer and fewer Filipinos relying on cash and with the market showcasing a diversity of payment methods, businesses in the Philippines’ small and medium enterprises (SME) sector have to rethink their current payment processes from the ground up. Not only is it important to accept as many payment methods as possible; businesses should also offer a buying experience that’s better than what’s offered by their immediate competitors. What’s more, their payment solutions need to be a good fit for their market and business model.
With so many competing solutions and ideas out there, it can be quite overwhelming for a business like yours to streamline everything about your payments system and make sure that your customers are guaranteed better payment experiences. To help you optimize your payment processes, here are a few tried-and-tested best practices to consider:
1) Let Your Customers Pay How They Like
The inability to offer a wide range of payment options will handicap your business. Take the case of Filipino SMEs that don’t have their own websites; the former are often limited to just a few payment channels like face-to-face cash exchanges, e-wallets, and a handful of remittance options. Without the ability to process credit cards and other emerging payment options, these businesses stand to lose potential customers and face hard limits on their growth.
Fortunately, several solutions already exist for SMEs and startups, including those without websites. For instance, Maya’s Payment Links gives subscribed SMEs a custom link for payment that customers can click on to pay with their preferred cards and e-wallets. This online payment link can be sent over any messaging app that enables live links, allowing businesses without websites to accept any payment method their customers might prefer.
As someone who runs your own business, make it as easy as possible for your customers to pay through their preferred channels. Doing so will increase your conversions at the point of sale and even keep customers loyal to your business over those of your competitors.
2) Prioritize Your Customers’ Security When They’re Paying
While more and more Filipinos are going cashless and buying things online, many remain concerned about online scams and data privacy, causing them to avoid merchants that they’re unsure of. To mitigate these concerns, make sure the technologies and processes you adopt comply with industry standards and regulations. In addition, be sure to regularly update your security protocols each year to stay ahead of potential threats.
3) Remove Friction from Your Checkout Process
The more steps one of your customers has to take to buy something from your store, the more likely they’ll be to leave it without making a purchase. Whether you run a traditional shop or an online storefront, it’s in your best interest to make the payment process as quick and hassle-free as possible.
Apart from offering customers the payment options they want, you should also make the overall buying process as intuitive as you can. To facilitate this, be sure to run periodic surveys and audits of your checkout process to fine-tune it even further. Lastly, invest in a user-friendly point-of-sale (POS) system to minimize errors made by your staff. All these steps will result in a smooth checkout process that your customers won’t mind going through again and again.
4) Train Staff on Payment Procedures
It’s critical that your staff is well-versed in all the payment procedures they’ll need to complete to ensure a consistent and satisfying customer experience. Focus on training them on how to handle different payment methods, resolve payment-related issues, and provide assistance to different types of customers. Remember, well-trained staff directly contribute to smooth transactions and also lay the foundation for long-term repeat business.
5) Implement Regular Reconciliation
Make it a point to periodically reconcile your payment records to ensure accuracy and identify any discrepancies. This helps you track the payments you’ve received, detect potential errors or fraud, and maintain accurate financial records.
To streamline the reconciliation process, you can hire a professional accountant and invest in good accounting software. It’s also a good idea to partner with a service provider that can help you with your payment record reconciliation efforts. Fintech company Maya, for example, offers the Maya Business Manager, an all-in-one payments processing dashboard that allows business owners to perform a variety of tasks related to payments, including easily tracking transactions involving specific products that they intend to check. Finally, simply making sure that your POS system is always updated can also contribute to smoother reconciliation while improving your customers’ buying experience at the same time.
6) Ensure Clarity When Communicating Your Payment Policies
Payment policies have to be communicated clearly to avoid potentially expensive disputes. Provide your customers with information on the payment methods you accept, your business’s standard refund and return policies, your payment deadlines, and any additional fees. Display this information prominently on your physical storefront’s POS, website, invoices, and other customer-facing communication channels.
7) Leverage Payment Reminders
Timely payment reminders can help you improve cash flow and reduce late payments. Thankfully, there are plenty of low-cost options for automating payment reminders on different channels. Be sure to prioritize reminders on your customer’s preferred channels to ensure prompt and effective notifications.
No matter what your business model is like, implementing these best practices should not only optimize your payment processes but also improve your customers’ overall experience with your business. By tailoring these practices to suit your specific needs, you will already be well ahead of many other SMEs out there. With Filipino consumers changing their preferred payment methods at an unprecedented rate, being proactive in improving your payments, checkout, and customer service should yield great results for your business in the very near future.