What are electronic payment and cash apps?
Payment apps are digital tools for sending money and paying for goods or services. Plus, it’s a quicker and easier way to manage financial transactions for small business owners. In each app you create a digital wallet with electronic payment and cash apps that connect to your credit card or bank accounts. So, you can send money without having to take a trip to the bank. The best part is, because so many different types of businesses accept cash apps, you can use them almost anywhere.
Why do customers prefer electronic payment and cash apps?
If you’ve ever used them, you’ll know why people like convenience. First, it’s faster and easier than carrying cash. Share your code or find the recipient in the app, then you can send money instantly. You avoid the hassle of digging into your wallet or having to carry the change with you. And, if you’re dating a group, you don’t have to worry about splitting the bill or getting stuck with the check.
Another reason people prefer these apps is the added level of security. There is less risk of your information being stolen with a digital wallet. Those using third-party payment apps won’t have to swipe their card or enter their information for online retail sites. At a time when identity theft is on the rise, electronic payments provide an extra layer of protection.
How can electronic payment and cash apps help your business?
Not only do many customers prefer cash apps, but they can also help your business grow. With so many apps connecting via social media, you can reach a wider audience than ever. Plus, new customers will have no problem paying for your services when you provide multiple electronic payment options.
From a commercial point of view, they also offer several advantages. First, it makes accounting infinitely easier. For example, with PayPal you can create and send invoices in minutes. This not only speeds up response times, but also ensures that you never lose track of payments. And don’t forget the added security it offers your business as well. It’s just another digital tool to help you adapt and expand.
The 3 best electronic and cash payment apps
The best thing Zelle is that it is already available with many mobile banking apps. As most major banks offer it, it has become one of the favorite electronic payments. Even if your bank doesn’t offer it, you can quickly create an account and send money to other users. Finance transactions instantly. However, it’s faster when both people already have existing accounts.
Zelle is compatible with iOS and Android users and offers its services for free. But banks can charge their own fees. Each bank also sets its own limits for weekly transfers. However, if your bank doesn’t offer Zelle, you can only send $ 500. And it’s not ideal for people outside the US as it doesn’t even let you link your account to a credit card or bank account. international.
PayPal is one of the most widely recognized and trusted electronic payment systems. It is available in 200 countries and has a range of tools for personal and business accounts. It is easy to use and offers some of the strongest encryption and security features available. However, the high limits and billing tools make it particularly attractive for small businesses. Its flexibility makes it easy to adapt and scale your business when the time comes.
Unfortunately, convenience comes at a price. Customers pay an additional 2.5% + flat fee if the account is linked to a credit card. Business accounts will also be charged an additional 2.99% + flat fee for receiving domestic transactions. And then there’s the 3.49% + flat rate for billing. Don’t forget that there are extra fees for international transactions as well.
While some of the other electronic payments focus on commercial tools and features, small business owners shouldn’t overlook peer-to-peer cash apps. Venmo it’s a great way to connect with customers and grab attention from social media. It is compatible on all platforms and connects to other popular apps. Venmo is a great way to get free advertising as it also offers more social features, like people posting and thanking you for your products.
However, you can’t overlook its limitations and past safety concerns. First, you need to change your privacy settings for anything you don’t want made public. Hence, it is only available in the US and then some fees apply. Venmo charges 3% for credit card funded transfers and 1% for instant withdrawals. Don’t forget that it limits your spending to $ 299.99 per week. But that can be increased to $ 4,999.99 once your identity is verified.
Things to consider
In choosing the best e-payment and cash app for my business, there were a few important considerations:
- Which ones are compatible with my and my customers’ devices?
- Can I use it to track invoices and payments?
- How much will I pay in taxes?
- Does it offer any prizes?
- What kind of protection is there against fraudulent charges or incorrect payments?
The best e-payment and cash app for my business
After doing my homework, I finally came to some decisions about which electronic payments and cash apps worked best for my needs. My first choice would have been Zelle as it is the preferred method of my main clients. Unfortunately, the credit union that manages my corporate accounts doesn’t have it. Although I could download the app, this obstacle pushed me in another direction.
The suite of tools and convenience provided by PayPal is unmatched. They have a more sophisticated billing system that can easily handle multiple contracts and customers. And it’s used by everyone I work with. I have yet to meet a customer who has not accepted or used them. It was an easy choice as I already had an account linked to my banks. And there were no worries about transferring money as I already have a payment history established with them.
Even though they charge substantial fees for the convenience, I feel it’s worth it for the service. However, the smartest move is to use all three if possible. The more accessible you become to potential customers, the better the chance you give your business to thrive.
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist and freelance writer. Choosing a life abroad has strengthened her commitment to finding ways to bring people together across language and cultural barriers. Although most of her time is devoted to working with children, she also enjoys good friends, good food and new adventures.