Many companies selling goods online persevere with traditional banking as part of their operations. This is often because it’s the way businesses have operated for decades, rather than because of any advantage. But by sticking with the tried and tested approach, merchants are missing out on a raft of benefits that virtual banking and new types of payments offer.
Initially, there is the benefit of not having to deal with banks. The alternative payment options offered by virtual banks can be quickly set up and used, without the need to take time out to visit a bank and pay the fees that most business accounts will charge.
Using new types of payment accounts gives merchants an easier way to receive payments. By enabling these on their websites via a payments button, businesses can receive prompt payment directly from marketplaces and clients, wherever they are in the world.
They can do away with the need for cumbersome bank transfers for payments from third-party marketplaces or their own clients – one of the most important aspects of this type of business. Relying on traditional bank transfers can be expensive and slow, often taking several days.
In addition, using other forms of payments makes it more convenient for customers to use their virtual bank account, payments card or other bank card. The buying process is also made simpler, as customers simply select their payment details with a click of a button, log into their payment account and complete the transaction with their account or a prepaid card.
Providers of new types of payments offer merchant services that include instant transfers, so money is credited to a merchant’s account as soon as the payment is received from the client. There are no outstanding fees, as these are calculated when processing the payment. And reporting is made easy, thanks to the ability to view payments and fees via an online reporting tool.
Many traditional banks aren’t set up to transfer money across certain borders, making it harder to operate across different countries. But virtual banks support different currencies, meaning payments can be received in the local currency of each individual customer. And e-commerce businesses can place goods on global marketplaces and receive payments without any fees.
Security is an area that some merchants are concerned about when switching to a virtual banking approach. But most new types of payment providers are certified for the security of their services, meaning this is nothing to worry about. ePayments, for example, is PCI DSS-certified, meaning its clients’ card details are handled with the highest standard of security.
Having once been the future, e-commerce companies are now very much the present when it comes to global retail and other sectors. Now that they’ve successfully challenged traditional commerce, they shouldn’t be afraid to do the same when it comes to banking – and should prepare to embrace the world of virtual bank payments and the benefits it can bring.