How to Choose an Electronic Payment System for Your Small Business
Digital payments help small businesses quickly access funds and improve cash flow. Here's how to choose a small businesses electronic payment system.
Key takeaways:
- Digital payments improve cash flow and customer experience. Offering secure, flexible options helps businesses stay competitive.
- Contactless and online payments are now expected. Safety and convenience drive demand for touch-free and e-commerce solutions.
- Choose systems that match customer habits. Select solutions that fit how your customers prefer to pay.
- Security is critical. Strong fraud protection and encryption safeguard your business and build trust.
Adapting to today's digital payment landscape
Accepting digital payments has long been a smart strategy for small business owners, allowing for quicker access to funds and improved cash flow. As digital-first shopping habits continue to evolve, customers increasingly expect businesses to offer secure, flexible payment options.
If you’re looking for an electronic payment system, it’s important to take the time to choose one that will work best for your business needs and your customers. Whether you're new to accepting digital payments or upgrading an existing system, it can be difficult to understand the various options and the pros and cons.
Meeting customer expectations with smarter business payment systems
The options for online payment services and digital payment systems may seem endless, but don’t get overwhelmed. Learning about the various choices and selecting the one that works for your business is likely to pay off, as demand for e-commerce continues to grow.
Global e-commerce sales are projected to surpass $3.8 trillion in 2026
Global e-commerce sales are projected to surpass $3.8 trillion in 2026, reflecting the steady expansion of digital retail. These figures are expected to climb to $4.9 trillion by the end of 2030, emphasizing the ongoing shift toward greater convenience, personalization and speed.
Whether customers are making purchases in-store, ordering for delivery, or using curbside pickup, they continue to expect and prefer digital payment services. Offering these options helps small businesses stay competitive and meet modern expectations.
Electronic payment options for small businesses
There are two basic uses for electronic payment systems:
- Online payments for e-commerce, mobile orders or remote services.
- Touch-free payments at the point of sale (POS), including mobile wallets and contactless payments.
Types of online payment platforms
Popular platforms like PayPal, Square, Stripe and Authorize.net allow small businesses to accept payments online. These and other online payment systems allow customers to securely pay a business online. Their fees vary based on the provider and the size of the transaction.
Many of these platforms also offer hybrid solutions that support both online and in-person transactions, making it easier for small businesses to manage payments across channels.
The importance of accepting touch-free payments
By accepting mobile wallets such as Apple Pay, Google Wallet, Android Pay and Samsung Pay, your business can accept touch-free payments at the point of sale. These systems also charge fees to merchants, often similar to the fees charged by credit card processing companies.
Businesses can also accept contactless payments by upgrading their equipment to accept contactless credit cards. Many credit card companies are now offering contactless versions of their cards, which allow users to simply tap their cards on a card reader, eliminating the need for users to enter a personal identification number.
Both mobile wallets and contactless credit card readers use near-field communications (NFC) to communicate payment information, generating a unique cryptogram for each transaction. To facilitate those transactions, your business will need an NFC-enabled reader. You may be able to simply get a plug-in reader to attach to your current card reader. Many digital payment providers have contactless readers that you can purchase, lease or borrow, or they can help you determine which third-party card readers will work with your current system.
How to decide which electronic payment system to implement
When exploring electronic payment options for small businesses, the most important consideration when choosing a digital payment system is how your customers prefer to pay.
For instance, if your customers prefer to shop online for delivery or place orders from their smartphones and pick up at curbside, you’ll need a solution that is tailored for e-commerce. If your customers prefer to shop in-person but want to make touch-free payments, you’ll need an NFC-enabled solution. Take time to think about your customers’ preferences, and consider asking some regular customers which payment options they would like to have.
Regardless of which type of solution you choose, you’ll need to pay close attention to security. Research the security protocols of any system you’re considering. Merchants and credit card companies are liable for any fraudulent activity that takes place through their systems if they do not have chip technology in place, so it’s important to ensure that the system you select will protect against any potential fraud.
Final thoughts
Taking the time and making the effort to select a secure, easy-to-use electronic payment system can help your business get paid faster, enjoy quicker access to funds, and serve customers better.
As technology continues to reshape how consumers shop and pay, adopting a digital payment solution is a critical step in staying competitive, building customer trust and future-proofing your business.
With decades of experience, Fifth Third is a leader in innovative payments and strategies to help businesses meet evolving customer expectations. To learn more about how you can offer flexible, secure payment options and enhance your customer experience, find a relationship manager.