We get it. Payment apps and digital wallets are convenient. They have exploded in popularity over the past few years, allowing people to easily pay friends and family for everything from utility bills to concert tickets. Recently, these
peer-to-peer financial apps have made their way into the business world. Cleaning services, psychologists, and contractors are among the small businesses allowing clients to pay this way. But is it a good idea for you and
The short answer is yes. But, you should consider three things before jumping in headfirst.
How the company communicates with businesses and consumers is essential. Make sure that the payment processor you choose has personalized, one-on-one customer service. Communicating through live chats or chatbots can lead to a frustrating and time-consuming journey if you need to get to the bottom of a reversed or an on-hold transaction. Speaking with a real employee can make all the difference.
Popular with digitally-native Millennials, some peer-to-peer payment apps are social, allowing users to share their purchases with followers. While many have private modes, activity is usually public by default. Opting-in to private mode is often up to the user. But, sharing payment information for all to see can have unintended consequences. User activity can be accessed and “scraped” from these payment apps by hackers or companies looking to use it for nefarious reasons.
Lack of control is another downside of sharing payment information. If your customer unintentionally uses a word or phrase that looks even remotely suspicious in their purchase description, like the name of a country, these companies can withhold payment until they ensure its legitimate. As a result, this process can take days, even weeks, to resolve.
Initially, most popular payment apps were not designed for business, so the reporting mechanisms needed to analyze purchasing and financial data are not up to par. For companies looking to make sense of customer purchasing habits or monthly profit, for example, the reporting structure of these apps is not robust enough and can be hard to navigate.
Ultimately, choosing the payment processor that’s right for your business is personal. After all, there is no one solution for everyone. Balancing ease and convenience with needs and security makes good business sense.