Did you know that if you’re only taking cash payments and don’t accept credit cards at your business, you’re losing 40% of potential sales. This is based on an online study conducted in 2016 which found that most Australians prefer using cards for payments and are avoiding outlets that don’t accept cards for small transactions. 61% of the surveyed cardholders also said they prefer to use a debit or credit card for most of their transactions.“"The research found that two in five Australians will avoid shops that don’t allow them to use cards for transactions. This means retailers who impose a minimum spend for consumers using a card are potentially losing out on a staggering forty percent of customers,” noted Garry Duursma, the head of Market Development and Innovation for MasterCard.
Whilst the study only surveyed Australian consumers, the same payment behaviour can also be applied to B2B buyers.
Just like regular consumers, B2B customers also want convenience. Whether they’re a startup cafe or an established fine dining restaurant, they’re more likely to do business with the supplier who makes their busy lives easier. A Deloitte study backs this up. Their B2B Payments 2015 Australia and New Zealand Research, revealed that B2B customers rely on cards as their primary payment instruments because they are better, faster, and cheaper. Even the B2B suppliers surveyed in the study said that accepting card payments have provided them with great benefits and have also increased their overall sales.
Similar results were also found in an Intuit Inc. GoPayment survey. The survey found that a staggering 83% of businesses that take card payments make more sales. 52% of these made at least $1,000 per month and 18% made roughly $20,000 per month.
With the above data showing the influence of credit card payments, it makes sound business sense to start accepting card payments at your business if you aren't already.
And for those of you who still need a bit of convincing here are some of the many ways choosing plastic over paper can boost your profits.
1. It gives you an edge over your competitors
Retailers are busy serving their own sets of customers so it goes without saying, they would like to do business with suppliers who have a simple payment process and offer the payment methods that they prefer. You don't want your clients making the switch to another supplier simply because they accept cards and you don’t.
By offering your retailers convenient payment methods that are beyond the typical cash and bank transfers, you’re helping them be successful in business and they will be more inclined to choose you over others. What's more, you could even become their preferred supplier, which means you will get a steady and consistent flow of orders and higher sales potential.
2. It lets you broaden your customer base.
The trend in this digital age, is moving towards an unwavering preference for card payments. Another relevant study showed that 52% of payments made by Australians were with debit and credit cards and this is only going to continue. By accepting cards for your B2B payments, you can make it a sales tool to attract more retailers.
If you decide to fully embrace the digital age and make the move to sell your products online you will also be able to widen your customer base. E-commerce is growing in Australia and more and more people are making their purchases online. By setting up an online store and taking credit card payments you'll instantly attract those people who are already online and use cards to pay for their purchases.
3. It gives you a positive cash flow.
Cards are a faster payment method. You won't have to wait for weeks for cash to be deposited to your account or for checks to clear as card payments can be processed in real-time and settled in less than three days. This means you can have greater control over your account receivables as well as faster payment cycles. Being paid quickly or even getting paid on time is one of the most effective ways to improve your business’s cash flow.
4. It helps improve customer relationships.
Your retailers will love you for making their lives easier. Taking card payments will keep them satisfied and happy, which means more repeat business for you.
SO, YOU WANT TO START ACCEPTING CARD PAYMENTS?
Great business decision!
There are a couple of ways to take card payments, so let's get started:
If you have a physical store where retailers can personally purchase your products, the perfect tool to have at your counter or reception desk is a PDQ (Process Data Quickly) machine, or also known as a Chip and Pin machine. This is common in many wholesale/retail businesses that accept debit and credit card payments. Most of the modern PDQs today are convenient to use because they don't require customers to enter their pin; the machine automatically reads the data from the card’s magnetic strip.
If you want something more advanced, you can invest in mobile credit card readers. These tiny devices let you turn your smartphone into a credit card machine, allowing you to take card payments anytime and anywhere - even outside your office. Here are some of the top mobile credit card readers you could check out:
One way to take card payments online is through a payment gateway. Payment gateways or merchant gateways are quite similar to in-store credit card readers using but they are online. They allow you to take payments via your website by simply asking your retailers to submit their card details.
In Australia, there are loads of payment gateway options to choose from. Each of them have their own sets of features and benefits, so it’s always advisable to do your research first so you make the best choice for your business. Below, we’ve listed down some of the well-known payment gateways in the country.
Another good way to accept card payments online is via mobile payment apps. Statistics reveal that 53% of payments made in Australia were made using mobile apps and these tech platforms have seen an uplift in usage of over 200%.
If you're looking for a dedicated food and beverage mobile app that lets you take card payments then look no further than Ordermentum.
Ordermentum is a platform that enables you to take retail orders where-ever, whenever you are. It also allows you to accept payments straight from your tablet or mobile device.
This B2B dedicated tool is well-known for its “Instant Payments” feature. It can charge your customers instantly by credit card, direct debit, or according to the payment terms you have agreed. The terms can be set depending on your requirements - upfront, 90 days, or anything in between. You can also tailor them per customer.
If you'd like to learn more about how Ordermentum can help your business start accepting card payments you can request a demo here.
Being able to offer more payment options to your retailers is critical for growing your business. Not only will it streamline your business processes and help you to maintain a positive cashflow it will give you an edge over other suppliers in the industry, helping you increase your overall sales.
Read more business advice like this when you check out our blog.