Consumers and companies have been placed under immense financial pressure due to the COVID-19 pandemic. Not only were most economies hit badly, but the unstable cash flow also prompted the need for innovative business strategies. Among these were the implementation and wider adoption of cashless payments.
Part of the struggles faced by merchants and consumers across the globe involved the need to follow health protocols that limited physical contact. At first, much of the commerce that started picking up was seen in online shops. Eventually, brick and mortar stores followed suit. What made shopping in-store more efficient and safer was the use of E-invoicing and QR-code payments.
E-invoicing is the future of billing
As a business owner, part of the operations process involves the collection of payments for products or services rendered. It’s only natural to issue an invoice, because it’s the primary means for you to bill someone. In the last couple of years, however, many businesses have started switching from paper invoices to digital ones.
Electronic invoicing is a digital means to send an automated e-invoice to a customer. Digital invoices can drastically improve the payment process, making it far more efficient. Between the traditional paper invoice and the e-invoice, not much differs. The same details that go into a paper invoice such as the customer name, delivery address, details on the product, pricing, and description of the service are also on a digital one. Instead of the invoices being in a physical form, however, digital invoices are often cloud-based.
QR-Code transactions and how they work
Normally, when a person makes an in-store purchase, the transaction can be settled via cash or card payment. Since COVID-19 mandates the need for fastertransactions, doing away with credit card terminals was inevitable. In its place, consumers can instead complete their payments by simply scanning the QR-code of a digital financing system like Payconiq. Once the code is scanned, the person transferring the funds can simply input their designated PIN or use their thumbprint to verify and approve the entire transaction. Payconiq effectively eliminates the need for bringing cash along to do groceries, buy essentials, or pay for services.
Funds are transferred instantly to the recipient along with transaction data and notifications, complete with reference numbers that both parties can use to record the purchase.
Merchants and future financial challenges of cashless transactions
An ongoing challenge for countless global merchants is ensuring future financial inclusion and reach expansion. Two of the biggest obstacles merchants must
overcome involves the need to offer flawless multi-transfer platforms for all online purchases being made by consumers.
More importantly, this must be accomplished without compromising any of the user’s financial information while providing a real-time invoice to customers as confirmation of their digital payments. Both of which must be thoroughly planned and implemented in order to gain consumer trust, while facilitating faster payments and transactions.
If there’s one thing consumers don’t need persuading on, it’s providing options that won’t compromise their financial details, since data security is sought out actively by any person using the internet. These shifting consumer preferences have many financial institutions, start-ups, retailers, and companies alike all clamoring to adapt to the services offered by online payment providers. With both buyers and sellers reaping the benefits of QR-Code transactions, however, there’s no doubt that the system is here to stay and can only get better from here on onwards.