7 Ways to Make Digital Payment Methods More Effective

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With the increased use of the internet across the globe, More and more businesses have marked their footprints on the internet to enhance their market. Consumers and users have started to shift from the traditional payment method to the cashless payment method especially digital payment systems. Digital payment systems have offered users the best convenience, speed, and reliability compared to conventional payment systems.

Though Digital payments are being adopted by more and more users, the Current digital payment solution needs to be more effective as well as more secure. There is a scope of improvement in terms of effectiveness and standardization. Some factors which play a crucial role in the adoption of digital payment systems are security, speed, confidence and user-friendly process. The easier and fast the payment method is; the more chances it has to become popular amongst users.

Here we have enlisted 7 ways to make digital payment methods more effective and increase user

1.Minimum journey to pay:

A minimum journey from initiating payment to completion of payments will be a strategic win in the growing competition of digital payment trends. The user would be more fond of payment method which completes payment in minimum steps. If you are providing digital payment solution like mobile payment app, peer to peer payment app, it would be counted your USP if you can pull off payment completion with minimal process.

2.Maximum Tie-ups across systems:

As online business and eCommerce trends are increasing, more and more new users are getting engaged in the digital payment system. With increasing users of cashless payment systems, Inclusion of maximum banks and the financial corporation is desired so that users do not face any hustle with peer to peer payment app. If a cashless digital payment system wants to include a new user in their system, the Inclusion of every bank in the digital system is the utmost requirement.

Apart from banks, It is high time for mobile payment apps to tap the market of all small shops, retail chains, and businesses. If the user is very well used to with digital wallet solutions, but he/she is not facilitated with digital payment options at the traditional market, then there would be a huge gap and such loose ends can affect the overall digital payment trend and its success.

Therefore, to make the digital payment system more effective, a tie-up between retailers and digital service providers is very important. By this, the digital payment method will be easily available online as well offline and it will be more visible to customers which will help to increase the use of the digital payment system.

3.An incentive/Loyalty Programme:

In conventional payment methods, We have seen that the company provides discounts or freebies to the consumer for using their product or services. The same tactic could be used to promote cashless payment systems. If you provide some reward or loyalty points to the user of your service, it attracts them to use it more often than average.

For example, Consumers would opt to choose by digital wallet rather than cash if they know a particular mobile payment app rewards them with cashback or discount. Such incentive schemes/ Loyalty program also helps the digital payment system to build up its customer base as well as cement up its market position in a competitive market.

4.Compatibility:

Any digital payment method should be compatible across all platforms. If the digital payment system runs with the only special platform and some set of systems and it does not run with others then it becomes an inconvenience for consumers. He/she will always be in a dilemma if my cashless payment method is not accepted by this platform.

So by giving such a cage, retention of consumers would be low in the long term for digital payment system providers. For any such providers, Adoption of such a payment system has a risk to limit its potential market and consumer group. So to overcome this situation, any digital payment solution must have open standardization across all platforms and should not be limited to any particular kind of platform or service.

5.Educate consumers:

Consumers tend to marginalize themselves to new methods or systems due to fear of loss or comfort. Such behavior increase when associated with money. When it comes to the digital payment method, the first concern of consumers is whether their money is transacting safely or not.

Though the digital payment trend is upward, still there is a segment of conventional customers who have fear of using digital payment solutions. So, It is very important to educate potential customers about the digital payment system.

Any digital wallet solution should and must educate their regular customer as well as new customers about how secure and convenient digital transaction is compared to traditional payments. They should be trained and encouraged by various means and ways to use a cashless payment system. Trust & confidence must be created among customers for digital payment solutions so that they can be diverted to new digital payment trends from conventional cash payment.

6.Standardization across devices and browsers:

Different browsers use a different mechanism to carry your digital payment, store your credit card/debit card details and so on. The same variation is possible for a different kinds of devices. So it becomes very important for a digital payment system to standardize its payment process and make it uniform across all kinds of browsers, devices, and gateways.

Crucial details like a credit card, debit card info, passwords are being used while the use of digital payment. So redirection/Pop-ups/ OTP verification should be uniform across all browsers and it must be highly secure from possible threats. Such standardization will help to engage the confidence of users in digital payment systems.

Minimum redirect:

We have seen several times that to complete your digital payment, you have been redirected several times to different pages. It could be of banks page, payment gateway page, OTP page and so on. Such redirects test the patience of the user to wait for their completion of payments.

And such redirects also increase the risk of payment failure as it leads to several pages and such increase the security threat as well as fail payment scenarios. So it is always advisable for a digital payment solution to make less redirect during the payment process.

In a nut shell it can be said that maximum integration and convenience with the best security, above enlisted factors would play important roles to improve effectiveness for digital payment systems in upcoming times and it will measure success and adoption among users.

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