These days, payment transactions are gearing towards contactless methods, especially after a huge shift in the shopping behavior of customers in recent years. Before anything, you want to make sure you partner with high-risk merchant account providers in order to be able to process payments whether you accept cash, cards, checks, or any of the latest payment technologies.
One of these newer advancements is the peer-to-peer (P2P) payment method, which is now a favorite among younger consumers. But from a business standpoint, how can you take advantage of P2P payment?
Getting started with P2P
One of the biggest benefits of P2P payments is that it’s easy to set up for both customers and businesses. On your end, signing up is as easy as downloading an app such as Venmo, Cash App, or Zelle, then creating a profile and linking your bank account to that profile. Once you have a personal account in the app, you can create a business account and start accepting payments.
So, how do you accept payments exactly? It’s easy; you just need to generate a unique name and QR code from the app and show it to customers who would like to use a P2P system when paying in your store or website.
Once the customer pays, you’ll automatically receive a notification that the payment was completed, which can also be easily verified on the app.
Now, if you want to transfer your funds from the app to your bank account, you can easily do that for a minimal transfer fee depending on how soon the funds are transferred.
The benefits of P2P payments
As a business, you need to take advantage of efficient methods that will keep your costs low. P2P payments are booming in the digital payments sector. Here’s why you should consider using this payment method:
- It is convenient. You don’t need to bring additional equipment or go through a long process just to accept payments from customers. With the P2P system, you just need a QR code to show to customers and you can process payments quickly.
- It is secure. A P2P payment system is considered one of the most secure and reliable forms of payment processing these days because most of these apps offer two-factor authentication to make sure that your account doesn’t get compromised. Both the business and the customers are also notified about the transaction.
- It is cost-effective. Unlike a majority of payment processing platforms that charge you a significant percentage for every transaction, most P2P payment systems only charge a minimal fee for payments made through the app.
Adapting to the P2P economy is essential in running your business, especially since a lot of consumers are now using this payment method mainly for convenience.
Of course, it’s also essential to look for reliable merchant services providers that will help you get your payment transactions in order, reduce costly errors that could also compromise information, and make sure that all your finances are organized to make it easier to file your taxes and just manage your money as your business grows.