One business trend that has remained constant over the past few years is increased adoption of electronic/ digital payments by both small and large companies. As of this moment, many businesses are in the process of setting up automated and settlement systems to handle their digital payments. Many more are planning to do so, while others are thinking of migrating from their current automated payment processing service provider.
These businesses have come to realize that using paper checks to pay multiple suppliers, service providers and other creditors is slow, cumbersome and inefficient. With electronic payments, companies are able to make payments much more quickly and easily.
But not everything is as rosy as it seems when it comes to electronic payments. A majority of leading service providers tend to charge exorbitant fees. These fees and other costs can add up and significantly eat into a business’s profits. This can deride the whole idea of taking up electronic payments in the first place.
The good news is that dozens of startups and financial companies are entering this market each year and competition in the sector continues to grow. Making payments is now easier than ever, thanks to the recent proliferation of affordable platforms.
Here is our pick of the top best 6 firms that are taking electronic payments to the next level.
6 Best Companies That Are Transforming Digital Payments For Business
This invoice-factoring service from the American seed accelerator Y Combinator offers a quick and convenient solution for fixing cash flow problems. Through the platform, businesses can now generate a consistent cash flow by selling their outstanding invoices. It can be particularly beneficial for new businesses looking to get cash quickly. Kickpay has helped bypass a number of major issues in B2B payments and is gaining popularity across the country, though it faces stiff competition from similar service providers.
In a world where there are no specific geographic boundaries when it comes to doing business (thanks to the internet), businesses need to find a way to pay suppliers, clients and suppliers spanning across the globe. That’s where Payoneer comes in. This platform simplifies the process of making global payments for businesses by giving them the simple option of sending payment directly onto a debit card, of which recipients can use to withdraw money at an ATM or purchase goods online or off-line. You can read an in-depth review here.
This is the most popular mobile payment solution, providing an easy way for small service providers to accept credit card payments on a smart device (smartphone or tablet). With Square, small businesses get a card reader and software (which includes POS software) for a flat fee of 2.75% on all transactions. Businesses on wheels, such as mobile hair salons, pet sitting service providers, cleaners, etc., have the option to use the card reader to accept credit cards or attach it to their mobile device to create an in-store POS system.
This is probably the most popular free invoicing software available today. With Wave, business owners get to enjoy a convenient and easy to do invoicing, accounting and payroll, and accept credit cards. Its invoicing features are unmatched and allow users to create customized, professional invoices, handle multiple payments, come up with estimates, create invoices for multiple debtors, see when invoices are viewed, add messages, and more!
Dwolla is a free payment service. It offers businesses a fee-free option to move funds between bank accounts via ACH. Business customers can use this platform to make payments, receive money from their customers, or send money to anyone on the Internet; but all parties must be signed up for this service. It lets users send money to email addresses, phone numbers, Twitter followers, LinkedIn connections and all businesses that accept Dwolla in just a few steps. The platform also has a Mass-Pay feature, which makes it easy for businesses to process thousands of payments simultaneously.
Venmo offers a convenient and affordable payment service, which not only makes payments easy for businesses but also allows them to reduce the costs associated with those transactions. Its popularity has seen it being acquired by PayPal, which plans to help it expand beyond peer-to-peer payments.
The Venmo payment service offers a social media type of platform to facilitate digital payments in a social and “experience-sharing” atmosphere. Businesses pay only a 2.9% fee to be allowed to let customers make in-app purchases. These customers are only charged (a 3% fee) when they pay with a credit card, otherwise it’s a free service. It offers adequate technical support for business customers, particularly when transferring payment to and from different accounts, and they get to save on transaction fees by choosing the right option. For businesses that need to get paid quickly and realize positive cash flow, this app offers a near perfect solution.