Top 5 Hacks for SMEs to Adopt Seamless Digital Payments in 2024-25

Be it eCommerce or the financial services industry, fast, secure, and frictionless payment options are a must for customers.

According to Statista, the total transaction value of digital payments is expected to grow at the rate of 9.52% (CAGR 2024-2028), resulting in a projected revenue of US$16.59tn by 2028.

It is about time SMEs catch up if they want to retain and win new customers in the cashless world we now live in. Having access to the right set of tools and prioritizing customers’ demands can help SMEs bring their A-game. But, the biggest challenge facing SMEs is high costs.

This blog reveals 5 hacks for SMEs to level up and adopt digital payments, all the while being cost-efficient.

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Why must SMEs adopt digital payment solutions?

Traditional payment infrastructures are not adept at handling the rampant market fluctuations or gearing for a cashless economy and customer demands. Not to forget about the operational inefficiencies and costs underlining software updates, upfront charges, and maintenance.

SMEs seldom operate on high budgets that can afford system failures, market fluctuations, operational costs, security breaches, and so on. Having a payment system that nails down the foundations of modern payment functions and is easy to optimize for, will help SMEs stand the test of time.

The adoption of digital payment solutions can help SMEs get there. Here are the top 5 SME tech adoption hacks to bring modern digital solutions to your ecosystem without the burden of heavy costs.

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How can SMEs adopt digital payments?

Here are some hacks we’ve found fast-scaling SMEs’ use:

Hack 1 - Find the digital payment tool tailored to your business needs

Tons of digital payment options are available in the market, but not all of them are for you. Do not search for the option that offers the best of everything, instead, scout for the one that best fits your unique business and customer needs.

Why?

Small and medium businesses need affordable and flexible options that come with features like low transaction fees and minimal setup to best complement tight profit margins. Other SME requirements include seamless integration, scalable solutions, and multi-currency yet localized support.

Not all solutions house these needs, making it critical to be picky.

Key factors to consider:

• Payment options - your business needs a solution that offers the latest as well as the standard payment methods. Credit and debit cards, digital wallets like PayPal or Google Pay, and bank transfers are a must. But, also look for the latest methods like cryptocurrency if your business needs it.
• Customer experience - your payment solution’s checkout experience affects your cart abandonment rate. A frictionless process with minimal steps and features like one-click payments helps bridge the gap and improve customer experience.
• Integrations - your ideal digital payment solution would offer integrations with your existing tech stack, be it an eCommerce platform, point-of-sale system (POS), accounting software, or inventory management systems.
• Security - compliance with industry standards like PCI DSS (Payment Card Industry Data Security Standard) is critical. Go for the payment solutions that are compliant and offer added security and fraud prevention.
• Flexibility - rigid systems like traditional payment methods would only barricade your business success. You need an option that would adapt to the latest innovations or demands and allow you to scale efficiently.
• Localization - cross-border transactions backed by hyper-localized payment options is another important factor to consider.

Bonus features:

• Added Value Features like built-in invoicing, detailed analytics dashboards, or loyalty program integrations
• Payment solutions optimized for mobile
• 24/7 customer support team

Payby is equipped with all the above features and so much more, meticulously tailored to the SME digital adoption needs.

Hack 2 - Cut down manual processes with automated flows

Some things are best left for humans to handle, but a lot of other repetitive tasks like invoicing, payment reminders, and reconciliations can be automated. Automation for small businesses is a boon to efficiency and a hack to human error that could benefit your business.

Make the most of this innovation by deploying it in areas like customer interactions, payment processing, invoicing, and more.

Key benefits of automation:

• No recurring chores - cutting down on recurring tasks can help save hefty business hours which can otherwise be used towards strategic activities that lead to business growth. Higher accuracy and productivity levels are added perks.
• Better hold on cash flows - automation flows can save you from missing out on payments and outstanding invoices, ensuring better cash management. Features like reminders, tracking & analysis facilitate the management.
• Top-notch assistance - automation can enhance the payment experience for customers by adding personal touch points like payment confirmations, instant receipts, real-time status updates, and more.

Bonus benefits:

• Fewer human errors
• Higher possibilities to scale

Payby allows integration capability with leading accounting tools, playing a key role in the automation of major tasks like invoicing, reconciliation, and payment tracking.

Pro tip - We offer additional third-party integrations to help you automate multiple other functions beyond digital payments like inventory management, payroll, and expense tracking.

Hack 3 - Use payment security to win customer trust

SMEs are more vulnerable to online security threats than their enterprise counterparts because they lack a tight security system to protect themselves. But your small business cannot afford those loopholes.

Securing your payment system shouldn’t be heavy on your business wallet. Choosing the right partner clubbed with taking security measures yourself will save you a major chunk of your expenses and loss from any security breaches.

Key steps to extended payment security:

• Multi-Factor Authentication (MFA) - MFA is a strong security system that verifies a transactor’s identity via multiple steps like pin and OTP verification. That extra step of verification keeps a huge fraction of fraudsters on hold.
• Tokenization and Encryption - tokenization works by replacing a card’s number with a unique token. Encryption ensures all sensitive data entered is altered and encoded to ensure no data can be read or used by fraudsters.
• PCI-DSS Compliance - The Payment Card Industry Data Security Standard (PCI-DSS) dictates how sensitive and personal data should be treated. Compliance with these security standards is mandatory, and non-compliance attracts legal penalties.

Bonus steps:

• Keep up with periodic security audits and revamps
• Adopt best security practices and train your employees to enforce them
• Have a backup plan for breaches or cyberattacks

Payment solution providers like Payby offer cybersecurity for SMEs by acting as your shield against payment security threats and implementing rigorous protocols to safeguard transactions.

Hack 4 - Map out a journey to digital literacy for your employees

Tools and processes alone do not guarantee digital transformation for SMEs. Your workforce should be equipped to take it ahead and make the most of the digital features.

Digital literacy among your employees will ensure they can operate, troubleshoot, and contribute to the benefits of new payment systems.

Key strategies to maximize digital literacy:

• Training sessions - your employees must know how to use the new system, from processing transactions to troubleshooting for issues, the dos and don’ts of usage, and more to avoid making mistakes or misuse. It will help you save costs from errors and improve productivity.
• Knowledge base - a readily available knowledge base that comprises resources, FAQs, guides, video tutorials, and more can help clear out any minor hiccups in SME digital adoption.
• Cybersecurity training - train your employees on threats like phishing scams, safeguarding customer data, and preventing breaches to increase awareness of the possible threats facing them.

Bonus tip: Stay updated on every new feature launch and software update and conduct training or peer-to-peer learning opportunities for successful adoption.

Payby supports workforce digital literacy for our partners by offering a dedicated knowledge base, and a rich collection of guides and blogs to keep you and your employees aware of the latest happenings.

Hack 5 - Carefully strategize your digital shift to stretch your budget

Tons of tools will not transform your small business. It will only be an additional expense. Doing your research to make strategic cost-efficient decisions and optimizing your budget will help you in the long run.

Key strategies for optimization:

• Invest smartly - an overly complex solution with tons of features and options will only complicate the entire digital transformation experience for you and your employees. Invest according to your need, and add features when you scale.
• Incentive programs - governments have multiple grants and incentives in place for SME digital adoption. Do your homework and avail what you can to minimize your financial burden.
• Save on tools - do not opt for multiple tools, rather find tools with multiple functionalities to cut down on your subscription charges.

Bonus tip: keep an eye on all your software subscriptions now and then to find and eliminate overspending.

Payby offers standard and customized plans that are affordable yet cater to all your business needs without compromising on any aspect.

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Conclusion

SMEs have to embrace digitization and modern digital payment solutions if they want to stay competitive and on top of the game. Using efficient hacks can transform them into digital natives and put them on the path to prosperity.

Payby’s products are carefully built for SMEs and optimized per their needs. We take it a step further and provide you with all the assistance to scale up in the future, catering to your needs at multiple stages of growth.

Get started with Payby today.