The digital realm affords merchants more ways to get paid than ever before. Yet many SMEs struggle with maintaining a healthy cash flow. We’re all working harder and for longer hours than ever and it’s possible your busy clientele may miss payment deadlines, leaving you to play catch-up. Late or missed payments can lead to payroll issues, unpaid vendors and over-reliance on credit, all of which could cause trouble to your business finances. Eliminating barriers to sales by simplifying the payment process can work wonders for your cash flow.
Payment links can serve as a useful way to remind clients of due payments and ensure that you get paid on time. Here’s a little about how they work, and why you should consider using them.
What is a payment link?
A payment link is a way for your clients to make quick, easy and secure online payments. Merchants share a link using an online platform that’s accessible and convenient for the client (e.g. WhatsApp, email, Twitter, Instagram, Facebook). This link takes the client to a secure payment page where they can input their payment and (where relevant) delivery information.
This enables them to quickly and conveniently complete the payment process and ensure a healthy flow of cash through your business.
Sounds good, right? Let’s look at 5 good reasons why you should consider using payment links.
1 – Reduce overhead costs
Whatever the size of your business, whatever your annual turnover, you undoubtedly want to reduce your overhead costs. The more distance you can put between your top line and your bottom line, the healthier your margins will be.
The great thing about payment links is that they spare SMEs the costs associated with third-party POS applications. No setup fees or ongoing maintenance costs means lower overheads for your company.
2 – Get paid faster
Long lags between invoicing and payment can wreak havoc with your cash flow. Payment links reduce the waiting time associated with bank transfers. Payment links have faster processing times, as well as providing a friendly reminder to customers that can reduce the risk of missed and late payments.
3 – Secure and convenient for the customer
The customer experience is as fundamental to your brand as the products and services you offer, especially in highly competitive fields like ecommerce. Payment links offer customers a convenient reminder that payment is due while offering a quick, easy and 100% secure payment method. They don’t need to download an app and the checkout page can be customised with your branding. So the customer doesn’t feel as though the payments are made through a third party.
Payments can be made in seconds, with minimal input from the customer.
4 – Eliminates barriers to sale
The longer and more complicated the payment process, the greater the barriers to sale. Especially when your payment platform doesn’t accept the payment method that’s the most convenient for the customer. Payment links can be used to accept payments from all kinds of methods, including e-wallets.
5 – Can be used for international payments
Your ambition doesn’t have to be constrained to a single country. But if you have your sights set on the international market, this can complicate the process of receiving payments. Fortunately, payment links can be used all over the world. Merchants can accept payments in a choice of currencies, accepting and converting the payment or simply accepting it in its native currency.
We Can Help
If you’re interested in finding out more about using payment links and receiving online payments, then get in touch with our financial experts. Discover how GoCardless can help you with ad hoc payments or recurring payments.