- July 29, 2021
- | 119
Hotels, B&B businesses, taxis, restaurants and cafes, gift shops, local art and entertainment venues – all make a particular country unique, authentic and memorable. They provide meeting places for local communities for dinner, relaxation and shopping, while offering unique experiences to visitors and travelers. But above all, they support the local economy. If you are a trader in one of the above categories, this article could be your guide.
How can local businesses attract more customers or not lose seasonal customers and tourists?
A good way to do that is by accepting as many payment methods and types of cards as possible.
The use of innovative payment services is a challenge for small and medium-sized businesses, mainly due to the high demands of banks on these businesses regarding the provision of POS terminals or other payment acceptance solutions.
With the development of EU regulations regarding e-money financial institutions, the European market has been enriched with innovative and affordable payment service providers.
Having a business in Europe, which is often visited by tourists from all continents, it is really important to be able to accept as many international types of cards as possible.
Apart from the traditional credit and debit cards issued by popular companies such as VISA, Mastercard and American Express, the modern or alternative payment methods are the ones which currently win in the payments market.
Some of them are:
- PayPal: PayPal is one of the most dominant payment methods available today with over 254 million users worldwide. Owned by eBay, PayPal is an eCommerce payment processing company.
- Amazon Pay: Amazon Pay is another big player in the online payment space. Similar to PayPal, Amazon Pay is a digital payment processing service that allows customers to pay online using their Amazon payment methods on third party websites.
- eBay Managed Payments: eBay’s own payments system enables shoppers to enter payment information and process it without having to digitally travel to a third-party site and therefore leave the marketplace.
- E-wallets, such as ApplePay and Google Pay are widely used by younger users, as they can easily pay by tapping on their smartphone screen.
In addition to global card systems, there are alternative payment methods that can issue cards and IBANs that can be used for payments and money transfers. eCREDO is one of them that is currently expanding its operations all over Europe.
The term alternative payment methods or innovative payment services includes a variety of transaction models such as bank transfers, cryptocurrency and the most common and fastest growing standard, the electronic wallets.
In fact, e-commerce requires equal measures of comfort and security. E-wallets offer both measurements and mobile applications integrate well into everyday life.
According to a Worldpay survey of more than 12,000 travelers, new generation travelers are more willing to use new payment methods during their trip, but also when buying tickets. In fact, this trend started growing since 2017, which resulted in the requirement of development of new technology platforms.
Although many travelers choose to use their credit cards to make their travel payments, it does not necessarily mean that it is their first choice. In fact, 95% of people who said they would prefer to use credit or debit cards also said they would gladly use an alternative payment method if they could.
The first card payment acceptance system one thinks of, is card readers or payment terminals (POS) where the terminal must read a card’s magnetic tape, chip or contactless, for a transaction to be accepted.
Online ways to accept card payments usually include an electronic payment completion model as well as payment links or buttons placed on online shopping pages, social networks or even informative emails. This method of accepting payments is widespread in the tourism industry as well as in online retail stores.
Another way to accept payments is by phone. You can use standard MO/TO (Mobile Order/Telephone Order) payments by downloading and manually processing card details.
A more recent option is the Payment Request, which allows you to send a payment link to your customer via email, SMS or instant messaging application. A Payment Request is a nonstandard request by a department for approval of payment by the company for goods or services. It is often used for purchases when an invoice is not provided. The only difference between a money request and an invoice is that a seller can customize and add more information to an invoice but both are protected by buyer protection.