The Complete Guide to Understanding Cashless Payments

(2024)

Learn about various cashless payments methods in 2024, their benefits for businesses and consumers, and the growing trend in the UAE towards a cashless society.
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5 min read

While we’re unsure if the society is heading towards becoming a cashless society, projections suggest that cashless transactions are indeed a popular choice for alternative payment methods across the world. 

While various e-wallets have made it easy for cashless payments, the biggest driver for the growing popularity of cashless payments is its convenience. 

As the cashless mode of payment is growing popular across the world, the scenario in UAE is no different. The total transaction value in the Digital Payments market is projected to grow at an annual growth rate of 8.02%, resulting in a projected total amount of USD 39.13 billion by 2027

In this guide, we will dive deep into understanding what cashless payment is and if it’s worth integrating into your business. 

What are cashless payments? 

In its strictest sense, cashless payments refer to transactions made without cash. Cashless payments are now a payment mode offered by a merchant at the point of sale that can occur either online or at a physical store. This is owing to new technologies like digital wallets, contactless payments, and mobile payment systems as well as the traditional credit, debit and bank transfer payments. 

Historically, cashless payments were made via cheques or money orders. But they took much longer to be processed on both the consumer and business front. 

What are the different cashless payments? 

Owing to technology, there are several different types of cashless payment modes available to businesses and consumers. Some of them include: 

1. Debit and credit cards

Debit and credit cards are among the oldest and most popular cashless payment options. Usually, the customer has to provide a verification PIN or signature for the transaction to happen. 

Additionally, one can digitise the card by saving and verifying the card details in digital wallets like Apple Pay and Google Pay. 

While on a credit card, the shopper has to settle the bill by the end of the month, for a debit card, a direct deduction happens from the account. Credit and debit card holders can also pay using another card verification option known as the CVV. Almost all top banks in the UAE offer credit and debit cards, including Emirates NBD and First Abu Dhabi Bank (FAB).

Additionally, prepaid and gift cards are becoming a favored choice for controlled spending and thoughtful gifts. These cards, preloaded with a set amount of funds, offer the same convenience and wide acceptance as debit and credit cards, providing a flexible and secure payment option.

2. Online Banking

Online banking has transformed the way consumers and businesses handle transactions. It offers a broad spectrum of cashless payment options. This method allows customers to log into their bank accounts online and conduct various financial operations. 

  1. Instant Bank Transfers: Customers can instantly transfer money directly from their bank accounts to merchants or other individuals. While some banks may charge a nominal fee, the transaction is usually processed immediately, providing a quick and efficient payment solution.
  1. Mobile Transfers: With mobile banking apps, users can quickly transfer funds, pay bills, or even split expenses with friends, all from their mobile devices. The convenience and speed of mobile transfers have made them a favorite among users who value efficiency and accessibility.
  1. Online Payment Gateways: These platforms facilitate online transactions between merchants and customers. When a customer makes a purchase, the payment gateway securely processes the payment, transferring funds from the customer's account to the merchant's. They often offer additional features like fraud prevention, encryption, and the ability to handle various payment methods, including credit/debit cards and e-wallets.

3. Digital Wallets

In recent times, digital wallets have become a cornerstone of cashless transactions. Digital wallets like PayBy and Alipay+ offer a secure and convenient alternative to traditional methods. 

These wallets work by linking directly to a user's bank account, securely storing credit or debit card information, or securely store cash with them. When making a purchase, they turn up as an option in payment gateways facilitating a smooth and quick transaction.

4. QR Code Payments

Another convenient and rapidly growing cashless payment method is QR code payments. This innovative solution involves scanning a quick response (QR) code using a smartphone to initiate a transaction. It's a contactless payment method that has gained immense popularity due to its simplicity and speed. Users open their payment app, scan the code displayed by the merchant, and confirm the payment. 

This method has become widely accepted in the UAE, with many local businesses and large retailers adopting it to offer a quick and secure checkout process. 

5. Cheque and Demand Draft

Though part of the more traditional spectrum of cashless payments, cheques and demand drafts hold their ground for certain types of transactions. A cheque directs a bank to pay a specified amount from one's account to another party. 

It's favored for large transactions due to its traceability and legal standing. A demand draft is a bank-issued payment made on demand, noted for its security as funds are prepaid. 

How do businesses benefit from cashless payments? 

As smartphones are becoming easy and accessible and digital wallets are gaining prevalence, cashless payments are taking over cash payments. Merchants are now offering various cashless payment methods to make it a seamless shopping experience for customers. 

On the other hand, research suggests that customers tend to spend more when they have cashless payment options. This happens because it's easy to part with money when it isn't tangible. But when we hold the physical money, it actually feels difficult to give it up.

Here are some of the key benefits of cashless payments we have observed: 

1. Improve security

With no physical cash to be maintained in cash drawers, businesses also reduce the risk of theft at their physical locations. There is also less room for fraud as every transaction is recorded in detail with documents like invoices and digital receipts. 

2. Enhance the customer experience

Cashless payments make the transactional experience for customers much more convenient. Rather than shoppers having to withdraw cash every time they need to shop your products or services, they can simply choose an online payment mode. 

3. Improve business efficiency

Paying digitally or with a credit/debit card is typically much faster than tending cash. As a result, speedier transactions help boost operational efficiency, freeing up both time and resources to focus on other essential areas of the business.

4. Monitor cash flow

Accepting cashless payments makes it easier to monitor incoming and outgoing money. Rather than having to manually go through your register at the end of the business day to record takings, cashless payment solutions automate the entire process. Never lose sight of your cash flow! 

5. Address customer demand

Owing to the pandemic, the need for contactless transactions is increasing by the day. Customers from all walks of life are choosing cashless payment modes over physical cash transactions. Setting up cashless payments can help your business capture this demand to deliver great experiences. 

In fact, The National News reports that cash is no longer king in UAE as it is rapidly getting replaced by digital payment modes. They state that almost two thirds of people in the UAE, or 64 per cent, expect the country to become fully cashless by 2030.  

7. Accept international payments 

The good thing about cashless payments is that they make international transactions much easier too. No matter what currency you use, a cashless payment solution can enable the transaction all without the hassle of currency exchange every time a consumer is traveling or placing an order from an overseas location. 

How do customers benefit from cashless payments? 

Customers prefer cashless payments because it can be done instantly. This is particularly helpful for shoppers who shop on the go. Cashless payments eliminate the need to go to the bank, withdraw money, or stand in long queues at the banks. 

Since there is no need to count the cash, the checkout is always faster. It's also easy to keep track of one's expenditure as every transaction is logged digitally. 

Customers are in more control of their expenditures as one can set a limit to expenditures, and once you are near the limit, reminders pop up on your phone. 

Customers are no longer in fear of losing their cash or getting robbed with cashless payment mode. 

Are cashless payments secure? 

Cashless payments use various security measures to make every transaction safe. For example, for credit card or debit card payments, the user has to input their PIN or password. 

There are also token-based transaction systems to keep it safe. The mobile payment system also offers various security measures. Some of the important security standards include:

  • Authentication: customers need to input a PIN or a passcode to authenticate any transaction. Additionally, 3D Secure Technology is used as a two-factor authentication. This ensures that no third party can bypass and get unauthorized access.
  • Encryption: Every transaction is safeguarded with encryption technology to prevent unauthorized access.
  • Geoblocking: Geoblocking is a cashless payment security system that blocks payment methods in certain countries to prevent fraud.
  • Privacy policy: All data (for example, personal data) collected during the transaction are kept private and not disclosed to any third party without permission. 

How much do cashless payment solutions cost businesses? 

A cashless payments solution like PayBy offers comprehensive products to enable digital transactions for businesses of all sizes. 

It offers simple pricing with no setup fees and one of the lowest transaction charges in the industry, giving you more control over your finances. 

  • Standard: Get access to all the PayBy payment solutions at one simple price - 2.50% + 1 AED for UAE cards, 2.80% + 1 AED for international cards and 1.5% + 1 AED for AliPay+
  • One-time fees for POS: PayBy also offers point of sale solutions at a one-time fee of AED 800 for the physical device. 

For more details, check out the pricing of our cashless payment solutions here

PayBy also offers custom packages for businesses with revenue over AED 500k per month. Contact us. 

What is the future of cashless payments? 

As cashless payment is becoming widely accepted across the world, a cashless society looks to be the next logical step. 

A report by the Standard Chartered Bank forecasts that the UAE is evolving as a cashless society and is expected to go completely cashless by 2030. 

Further, as new payment technology continues adding new payment options like QR codes, near-field communication (NFC), and other contractless technologies, consumers find it easier to complete a transaction with their smartphones and wearables. 

Once AI is applied to payments, it will become easier to make cashless payments. 

Along with the emergence of new technologies, the government is also coming up with new initiatives to promote cashless payments and reduce the cost and risk associated with cash transactions. 

Different countries are taking initiatives to come up with new digital wallets, infrastructure, and mobile payments to boost cashless payments. Needless to say all these will have an impact on the traditional banking system.

In the near future, more collaborations between banks and fintechs are expected to emerge to adapt to the changing landscape of cashless payments.

Finally, the increasing popularity of cashless payments is going to change the way consumers manage their personal finances. The coming days surely look promising for cashless payments. 

Integrating cashless payments is no longer difficult

Cashless payments are the future of all transactions. 

The good news is that it is no longer difficult to get started with cashless payments with solutions like PayBy. 

Catering to different industries and businesses of all scales, PayBy enables cashless payments with the following solutions: 

  • Online Payment Gateway - Our global payment processing platform enables you to process debit and credit card payments online. It integrates seamlessly with your website or mobile application to offer easy payment solutions to customers by including local payment methods. 
  • Paylink - Create a shareable payment link or button that can be embedded on web pages, emails and other digital collaterals, for customers to click and make payments of a fixed or custom amount. 
  • Payable Invoice - Create and share invoices with customers in minutes via email or SMS with the ability to click and pay via online payment options.
  • QR Code Payments - Create a custom QR code for your business to let customers scan and pay for orders placed online and offline. 
  • Recurring Payments - Easy to use subscription-payment processing service to simplify recurring payments for customers with auto-debit feature. 
  • In-App Payments - Integrate your brand’s mobile app with PayBy In-App payment solutions to enable online payments for users. 
  • Pay with Wallet - Give customers the ability to pay for orders with a multitude of supported wallets like Botim, PayBy, and AliPay+. 
  • Point of Sale - PayBy offers two point of sale devices. Smart POS enables purchases and refunds alongwith the ability to trace daily transactions, and is suited for fast-scaling businesses. Smart BOX is specially designed for small and medium-sized businesses and enables receiving/ refunding money. 

PayBy payment solutions integrate seamlessly with popular content management systems (CMS) and other business tools, making getting started even simpler. 

Want to know more about cashless payments or how it benefits your business growth? 

Book a demo with us today

Want to know more about cashless payments or how it benefits your business growth?

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Cashless Payment Benefits Across Industries in 2024

Gautham Gopakumaran
|
5 min read
February 19, 2024
|
Tag

The pervasive shift towards cashless payments is transforming the landscape of industries and businesses, irrespective of their size.

Source- Hubspot

Global cashless payment volumes are poised to surge by over 80% from 2020 to 2025, with a nearly threefold increase anticipated by 2030.

In this blog post, we see the key industries we are noticing embracing cashless payments with PayBy.

Which industries need cashless payments 

Numerous industries are adopting cashless payments, as digital transactions offer increased efficiency, convenience, and security. Here are some that are particularly benefiting from the shift: 

1. Information technology and services

In the Information Technology and Services sector, where digital transactions are commonplace, the integration of cashless payments aligns seamlessly with the nature of operations. The elimination of currency-related barriers and diverse banking systems through cashless payments streamlines exchanges, simplifying the overall transactional process. 

The adoption of digital payments brings about advantages in auditing, accounting, and financial reporting. It ensures compliance with regulatory standards while concurrently reducing manual errors in bookkeeping processes. The streamlined nature of cashless transactions accelerates payment processing, contributing to the expeditious flow of cash for businesses. 

IT and Services is one of those industries that are tech-savvy and can swiftly embrace new technologies and payment platforms. This adaptability enhances their competitiveness in the market, providing added value to clients through the facilitation of seamless financial transactions. 

2. Tourism and hotels

In Tourism and Hotels, the integration of cashless payments significantly simplifies transactions for both travelers and businesses involved in travel bookings, hotel stays, and related activities. 

Tourists benefit from the seamless ability to book accommodations, make reservations, and settle bills through digital payment methods, eliminating the inconveniences associated with currency exchange and physical cash handling. 

The adoption of digital payment systems in the tourism and hotel industry enables the collection of valuable data on guest preferences and spending patterns. This data becomes instrumental for hotels in personalizing services, offering targeted promotions, and creating effective loyalty programs.

The availability of diverse digital payment options further contributes to customer trust and loyalty, providing guests with peace of mind and convenience throughout their stays.

3. Fitness and wellness

Cashless payments simplify the entire financial landscape for both businesses and clients in the fitness and wellness industry. 

For gyms, wellness centers, and fitness classes, the adoption of cashless payments streamlines membership transactions, enabling members to effortlessly pay for subscriptions or sessions using digital methods. This ensures a consistent and secure revenue stream for businesses.

The elimination of the need for clients to carry cash or checks to fitness facilities is a significant advantage of digital payments in this context. 

Integrated digital payment systems also generate valuable data insights on client behaviors and preferences. Leveraging this data, fitness and wellness centers can tailor their services, offering personalized fitness plans and launching targeted marketing campaigns to drive business growth. 

Such cashless payments industries open avenues for implementing loyalty programs and flexible payment options, enhancing client loyalty and encouraging regular return visits for services or memberships.

4. Social product and service sellers

Digital payment methods play a crucial role in breaking down geographical barriers for social product & services sellers. They empower creators to engage with customers worldwide, eliminating the constraints associated with physical cash and local currencies. 

Buyers, in turn, benefit from the ease with which they can purchase digital content, artwork, or services with just a few clicks. This accessibility not only encourages impulse buying but also eliminates the inconveniences often associated with traditional payment methods.

This electronic payments industry also offers robust encryption and fraud protection protocols. These security measures safeguard both the seller's income and the buyer's financial information, fostering a sense of trust between the parties involved. 

5. Restaurants and cafes

In restaurants & cafes, minimizing cash handling emerges as a crucial aspect, mitigating the risks associated with errors in change and the potential for theft. This not only creates a more secure environment for both employees and patrons but also streamlines the financial processes within the establishment. 

Establishments leveraging cashless payments often adopt innovative technologies, such as table-side ordering through apps, self-checkout kiosks, and loyalty programs linked to digital wallets. This not only fosters a more tech-savvy and competitive edge but also reflects a commitment to meeting the evolving expectations of customers.

Offering various cashless payment methods caters to diverse customer preferences, incorporating contactless payments, mobile wallets, and online ordering systems that align with modern consumer behaviors and further streamline the dining experience.

6. Hospital and healthcare

Integrated payment systems within hospitals & healthcare settings extend their impact by facilitating seamless integration with electronic health records (EHRs) and insurance platforms. This integration, in turn, streamlines claims processing and ensures the accurate documentation of financial transactions. Moreover, cashless payments serve as a fundamental enabler for telehealth services, allowing patients to conveniently pay for virtual consultations or remote monitoring services.

7. Gaming, betting and casinos 

Players now have the convenience of seamlessly loading funds into their gaming or betting platforms through various digital payment methods, eliminating the need for handling physical cash and providing speed in placing bets or playing games.

Beyond security, cashless payments enable better control and management of funds, allowing players to monitor their spending, set limits, and track gaming expenses more effectively through digital payment systems, promoting responsible gambling practices.

The advantages extend to swift and secure payouts for winnings, as players receive their earnings directly into their digital wallets or bank accounts. This eliminates the delays and complexities associated with traditional cash payouts. 

8. Insurance

Digital payment systems bring efficiency to the claims process for both insurance providers and policyholders. Claims can be filed and settled digitally, reducing paperwork, minimizing processing times, and facilitating faster disbursement of claim amounts. 

Also, digital platforms empower policyholders to easily access their policy details, make necessary changes, and communicate seamlessly with insurers, enhancing overall transparency and responsiveness in the insurance relationship.

Beyond convenience and efficiency, digital transactions in this industry ensures robust security measures against fraud and unauthorized access. 

Insurance companies can implement advanced technologies such as multi-factor authentication and encryption protocols to safeguard policyholder data, thus preventing fraudulent activities and enhancing the overall security of the insurance ecosystem.

How can PayBy help?

PayBy offers a comprehensive suite of cashless payment solutions that can be tailored to meet the industry's diverse and complex transaction requirements.

PayBy payment solutions offer features such as: 

  • Multiple payment modes (Credit cards, Debit Cards, Digital wallets & Bank Transfers)
  • Custom payment options (Subscription-based payments, One-time payments & Optimized payment experience)
  • Transaction monitoring and management (Payment tracking dashboard, Digital receipts, Detailed reports and insights & Record seasonal fluctuations)
  • User permissions and control
  • Automated payouts (Monitor payout status, No delay in bulk processing)
  • Security and Compliance

Conclusion 

In this digitally woke era, the demand for streamlined cashless payment solutions reigns supreme. When it comes to selecting an ideal payment system for your industry, it should offer easy setup, seamless integration with existing tools, and robust transaction tracking capabilities. 

PayBy transforms digital payments by offering real-time insights, secure transactions, streamlined reconciliation, and integration capabilities.

With no setup fees and one of the lowest transaction charges in the industry, the PayBy payment gateway also gives you more control over your finances.

Embrace the cashless system advantages—get started with PayBy today

FAQs

1. What are the benefits of a cashless economy?

A cashless economy offers heightened efficiency, transparency, and convenience in financial transactions, fostering economic growth. The cashless payments industries witnesses increased speed, reduced costs, and improved record-keeping, streamlining financial interactions for businesses and individuals alike.

2. Why is cashless payment safer?

Cashless payments industries enhance safety by minimizing the risk of theft and fraud. Digital transactions offer secure encryption, authentication protocols, and real-time monitoring, ensuring a protected financial ecosystem with reduced physical vulnerability compared to traditional cash transactions.

3. What is an example of a cashless transaction?

A typical example of a cashless transaction is using mobile payment apps to pay for goods and services, exemplifying the growing influence of cashless payments industries in modern economies.

How does PayBy POS Help with Cash Management

Gautham Gopakumaran
|
5 min read
February 19, 2024
|
Tag

Efficient cash management stands as a cornerstone for sustainable growth and financial stability.

However, there are several challenges that businesses face in cash management, such as:

  • Handling physical cash poses security risks
  • Manual cash reconciliation can be time-consuming and error-prone
  • Lack of real-time visibility into cash flows complicates decision-making
  • Difficulty in tracking and managing multiple payment methods efficiently

Enter POS systems, a solution addressing these hurdles. 

POS systems combine hardware and software to facilitate sales, manage inventory, process payments, and generate transaction records for businesses' operational and financial management.

In this blog post, learn how the PayBy POS system emerges as a game-changer as it offers a comprehensive solution that simplifies and optimizes cash management processes.

Overview of PayBy POS System

PayBy POS system is a complete solution designed to streamline in-store cashless transactions, catering to various business sizes and needs. Its key features and functionalities span across three primary products:

1. Smart POS

Ideal for small to large merchants, it facilitates cashless payments, supports multiple modes of payment (including AliPay+, PayBy, and Botim wallets), and offers features like transaction tracking, multi-store management, advanced permission controls, and AI-enabled security.

2. Smart BOX

Tailored for SMEs, this portable solution seamlessly integrates with existing terminals, allowing QR code scanning via the PayBy consumer app for swift payments. It also boasts a robust security infrastructure.

3. QR code payments

A free POS solution designed for small businesses, enabling cashless payments without a physical device. Merchants can display a QR code for customers to scan and make payments using various methods like credit cards, debit cards, and multiple wallets.

Other features of PayBy

PayBy offers an array of features to set up cashless payments and accept all modes of payment across physical customer touchpoints. Here are some other PayBy POS features that make it a standout choice for businesses: 

Efficient Transaction Processing

  • Explain how PayBy POS streamlines transaction processing, reducing errors and wait times.
  • Highlight features like quick barcode scanning and easy payment processing.

Enhanced Security and Reduced Cash Handling Errors

  • Discuss the security features of PayBy POS, including secure payment processing and fraud prevention.
  • Explain how reduced cash handling minimizes errors and potential theft.

Simplifying Reconciliation and End-of-Day Reporting

  • Describe how PayBy POS simplifies the reconciliation process with accurate end-of-day reports.
  • Highlight the ease of matching sales data with bank deposits.

Integration with Accounting Software

  • Discuss how PayBy POS can integrate with accounting software for streamlined financial management.
  • Explain the benefits of this integration for maintaining accurate financial records.

1. Real-time tracking and reporting

Payby’s POS reporting tools provide real-time tracking of sales and transactions through a centralized dashboard, offering businesses immediate access to transaction data across various payment modes, including QR codes and other PayBy-supported methods. Here's a breakdown of how it achieves real-time transaction tracking:

  • Centralized dashboard: Merchants can access this dashboard to view and monitor transactions as they occur. It captures payments made through QR codes and other supported payment modes, allowing for a comprehensive overview of all sales activities.
  • Instant transaction updates: As transactions take place, the system updates the dashboard in real-time. This instantaneous reporting ensures that businesses have up-to-the-minute information on sales, revenue, and payment types, eliminating delays in accessing crucial financial data.
  • Comprehensive transaction details: The dashboard provides detailed transaction information, including transaction amounts, payment methods used, timestamps, and customer details where applicable. This level of granularity allows for thorough tracking and analysis of sales activities.

With access to such real-time data, businesses can make informed decisions promptly. Whether it's adjusting inventory levels, optimizing marketing strategies, or identifying high-performing products or services, real-time tracking facilitates agile decision-making.

2. Efficient transaction processing

PayBy POS system streamlines transaction processing by incorporating efficient features that minimize errors and wait times, ultimately enhancing the overall payment experience. Here's how it achieves this:

  • Quick barcode scanning: The system facilitates swift payment processing through QR code scanning and reduces transaction times significantly. Quick QR scanning and easy payment processing mean shorter queues and faster checkout experiences for customers. This not only enhances customer satisfaction but also optimizes business operations by increasing transaction throughput.

It also allows merchants to create unlimited QR codes without incurring additional costs. This feature allows seamless payment collection across different locations or touchpoints, enabling customers to make payments swiftly by scanning the code using their smartphones.

  • Easy payment processing: PayBy POS offers a user-friendly payment processing interface. Customers can choose from various payment modes supported by PayBy, including credit cards, debit cards, and multiple wallets. The interface is designed to be intuitive, ensuring a smooth payment experience for customers, reducing the likelihood of errors during the transaction process.
  • Customize payment collection: The ability to create unlimited QR codes allows businesses to have specific codes for different locations or products/services. This customized approach to payment collection simplifies accounting and reconciliation processes as transactions are recorded against specific codes, aiding in tracking sales by location or items. 

3. Enhanced security and reduced cash-handling errors

PayBy POS prioritizes security, implementing robust measures to ensure secure payment processing and prevent fraud. Here's an overview of its security features:

  • Secure payment processing: PayBy integrates with various payment modes, offering in-app payment solutions with optimized mobile pay pages and secure transaction interfaces. This integration ensures that transactions are conducted through a secure environment, protecting sensitive payment information from unauthorized access or interception.
  • Security password controls: PayBy implements security password control solutions provided by CFCA (China Financial Certification Authority) or similar reputable entities. These controls add an extra layer of security, ensuring that only authorized personnel can access sensitive system functionalities or perform specific actions, reducing the risk of internal breaches.
  • State-of-the-Art QR code encryption: PayBy utilizes state-of-the-art encryption techniques to secure scan-to-pay QR codes. This encryption ensures that QR codes used for transactions are tamper-resistant and cannot be duplicated or manipulated, thereby preventing fraudulent activities related to QR code payments.

4. Simplifying reconciliation and end-of-day reporting

PayBy POS streamlines the reconciliation process by offering accurate end-of-day reports and facilitating the matching of sales data with bank deposits. Here's how it simplifies these aspects:

  • Comprehensive end-of-day reports: The system generates detailed end-of-day reports that provide a comprehensive overview of all transactions processed during the day. These reports include sales data, payment methods used, transaction amounts, taxes, discounts, and other pertinent details. The accuracy and comprehensiveness of these reports aid in reconciling sales activities against bank deposits.
  • Real-time account receivables tracking: PayBy POS offers a real-time dashboard that tracks account receivables against invoices shared and paid. This dashboard provides immediate insights into the status of payments, allowing businesses to monitor outstanding invoices and payments received. This feature simplifies the reconciliation process by keeping track of pending payments and ensuring all transactions are accounted for.
  • Detailed invoices: Invoices generated by PayBy POS offer a detailed breakdown of expenses, including prices, taxes, discounts, and other relevant information. This level of detail ensures transparency in billing, enabling customers to understand their charges thoroughly. This detailed invoice breakdown makes it easier to match sales data with corresponding customer payments.

The system's analytics capabilities allow businesses to identify inactive customers, enabling targeted efforts to re-engage with them. Also, by detecting payment failures and addressing them swiftly, businesses can reduce customer churn and maintain a healthier customer base.

5. Integration with accounting software

PayBy POS offers seamless integration with accounting software through its easy-to-use API and robust compatibility with various CMS (Content Management System) platforms. Here's how this integration benefits businesses in maintaining accurate financial records:

  • Efficient data transfer: The integration allows for smooth and automatic transfer of transaction data from PayBy POS to accounting software. This eliminates the need for manual entry, reducing the risk of human errors and ensuring data accuracy.
  • Real-time updates: The integration enables real-time updates between the POS systems and accounting software. This means that as transactions occur, they are promptly reflected in the accounting records. Real-time synchronization ensures that financial data is always up-to-date and reflects the latest sales and payment information.
  • Streamlined reconciliation: Integrating PayBy POS with accounting software simplifies the reconciliation process. Matching sales data with bank deposits becomes more straightforward, as all transaction details, including payment methods, amounts, and taxes, seamlessly flow into the accounting system. This streamlines the reconciliation of sales records with financial statements.
  • Enhanced financial visibility: The integration provides a holistic view of financial data. Business owners and accountants gain comprehensive insights into sales, revenue, expenses, and other financial metrics within the accounting software. This comprehensive view allows for better financial analysis and decision-making.

Conclusion

Selecting one of the optimal POS systems is pivotal. The POS system provided by PayBy transforms cash management by offering real-time insights, secure transactions, streamlined reconciliation, and integration capabilities.

With no setup fees and one of the lowest transaction charges in the industry, the PayBy payment gateway also gives you more control over your finances.

Embrace the future of cash management—get started with PayBy POS today

FAQs

1. What are the 4 types of POS?

POS systems come in four primary types: mobile POS, cloud-based POS, terminal POS, and self-service kiosk POS. Each type caters to different business needs, offering flexibility, mobility, and varied functionalities to streamline transactions and enhance overall operational efficiency.

2. Why is the POS system used?

POS systems are integral for businesses to manage sales, inventory, and customer interactions effectively. They automate transactions, simplify inventory tracking, provide insights into sales trends, enhance customer experiences, and offer secure payment processing, ensuring smooth operations and informed decision-making for sustained growth.

3. What are the 6 functions of the POS?

POS systems encompass pivotal functions including transaction processing, inventory management, sales reporting, customer data tracking, employee management, and integration capabilities with other business software. These functions collectively optimize business operations.

7 Reasons you Should Introduce Cashless Payment Systems

Gautham Gopakumaran
|
5 min read
February 19, 2024
|
Tag

Cash is no longer king. 

30 years ago, a world without cash was not possible. But, over the years, businesses have realized that dependency on cash can be tricky and risky. 

From not being able to record every transaction to theft/fraud or even providing change to the customer, businesses need better solutions.  Whether you are a small, mid or enterprise based business, cashless payment systems are the future to improve business efficiency. 

In this post, we look into the leading reasons why businesses of scale can be seen adopting cashless payment systems. 

What are Cashless Payment Systems? 

Payment transactions that occur without physical exchange of money are referred to as cashless payments. 

They can be conducted online and in-stores via a point of sale (POS). Both, the payer and the receiver, use digital mediums to exchange money. This includes payments via direct bank transfers, credit/ debit cards, digital wallets, online payment portals and similar transaction modes. 

Why should businesses switch to cashless payment systems?

Cashless payments have widened the opportunities for businesses to enhance the customer experience offered and take control of their finances. Here are some of the leading reasons why businesses have been quick to embrace this change: 

1. Helps increase sales and revenue

‘Swipe, Tap or Scan’ has become extremely common as we move towards a cashless society. Customers prefer to carry their phone or credit/debit cards rather than the cumbersome wallet filled with cash.

Businesses that only accept cash, inadvertently limit sales. Numerous and frictionless payment methods allow people to spend easily. When paying digitalls, customers tend to spend more, leading to higher revenue. 

2. Helps increases convenience and saves time

Cashless payment systems save time. They can be 6x faster when compared to cash transactions, reducing the average transaction time from 90 seconds, to just 15 seconds. 

Shorter lines encourage people to buy that extra drink or shirt, resulting in a positive customer experience and retention. When Atlanta’s Mercedes-Benz Stadium went cashfree, there was a combined 16% increase in food and beverage spending at Atlanta Falcons and Atlanta United games. 

This leads to improved revenue and higher customer lifetime value amongst customers. 

For business owners, in-store cashless payments allow tracking of incoming and outgoing funds. This saves time and comes handy while filing returns.

3. Helps analyze data and generate insights

With cashless payment systems, you can gain insights into your business, to make informed decisions about evolving needs and preferences. 

All transactions can be used to segment your customers, based on payment volume or payment type in specific periods. 

Data helps understand your customers preference and behavior patterns. This knowledge leads to targeted product launches, offers and overall customer satisfaction. 

4. Helps with increased security during transactions

Cybersecurity in cashless payments, has taken off one more worry off the consumer and retailer. Cashless payment solutions help eliminate the risk of theft or fraud. Here’s how: 

  • Digital transactions are secured with varying levels of encryption and data authentication
  • With most payment modes, enabling two-factor authentication (TFA) adds an extra layer of security 
  • Customers can activate geo-blocking features that restrict transactions in certain countries to prevent fraud
  • All data collected from digital transactions is protected against use by third parties. No personal information can be disclosed without permission
  • All digital transaction methods provide SMS and email notifications; and statements for users to track their funds 

5. Helps to lower operating expenses


Cash management is neither easy nor cheap. 

Storing, transporting and depositing cash funds is a task by itself. Moreover, you need additional training for employees to manage cash payments — and you cannot discount the scope of human error. Building additional security to keep your funds safe like lockers, cameras, sometimes even armored trucks (when transporting huge amounts of money) is an expensive affair.

SMBs can cut unnecessary expenses with digital payment solutions. Bill Walsh, VP of Tampa Bay Rays, said “We’ve seen some pretty substantial operational savings from not having to manage a large footprint of cash in the building. The team saved $150,000 in operating and manpower costs.” 

6. Helps to enhance accounting accuracy and efficiency

Digital payments can increase transparency and streamline management. Digital transactions make accounting accurate and faster; as compared to manual efforts. 

For retailers, there is a clear paper trail, and no risk of vendors/employees under-reporting sales. Payments made by customers or to vendors can be easily tracked without sifting through physical records.

Cashless payment systems can reduce the time spent on accounting and reconciling at the end of the sales day, which allows you to focus on other aspects of the business. 

7. Improved customer experience for customers

Based on the study by Visa, cashless payments, mainly via e-wallets (52%) and contactless card payments (44%), are growing rapidly. Customers prefer new payment methods such as Buy Now Pay Later (BNPL) solutions (63%). 

This is particularly evident in categories such as bill payments, supermarkets, retail shopping, purchases at convenience stores, and restaurants. 

Plus digital payment adoption offers benefits to consumers. These can be in the form of cashback, points, or vouchers. On the other hand, cash payments offer no such additional value, hence customers prefer making purchases via digital means. 

By enabling cashless payment systems, you improve the customer experience and the value gained from your business. This encourages shoppers to buy and stay with your brand rather than the competition. 

Conclusion 

The benefits of cashless transactions cannot be ignored. It has changed the way people conduct business around the world. From malls to restaurants and eCommerce stores, most businesses have opted for the smarter and efficient method of digital payment systems. 

The plus point is that it is not difficult to establish cashless payment solutions. 

With comprehensive payment solutions like PayBy, it is also easy for businesses to get started with cashless payment systems. From the smart point of sale systems and scan-to-pay QR codes or online gateways; all solutions are designed for businesses of different sizes with different needs, to grow and succeed. 

Book a demo today to know more.

Cybersecurity in Digital Payments

Gautham Gopakumaran
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5 min read
February 23, 2024
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Tag

According to JP Morgan, 30% of companies have reported an increase in digital payment frauds. 

With the internet, businesses have revolutionized the way they collect customer payments. But not far behind are hackers/ miscreants who have made the internet an unsafe place, with increasing fraud and security breaches. 

In this post, we look into why cybersecurity is important for businesses setting up online payments and the best practices we recommend following. 

Why is cybersecurity important for online payments? 

Whether you’re a business or a consumer, keeping your data secure is crucial. But here’s why cybersecurity measures in online payments are even more important: 

1. To protect sensitive information

A typical financial services employee has access to 11 million files. Unfortunately, online transactions are susceptible to hackers. They are highly motivated by money to acquire data, especially personal banking information. Vulnerable systems are at high risk, which can lead to disastrous consequences for businesses and individuals. To protect sensitive data, cybersecurity in digital payments become crucial. 

2. To prevent fraud 

Money laundering, identity theft, and fraud are common concerns in online transactions. With machine learning and fraud detection mechanisms, cybersecurity programs can analyse transaction patterns for suspicious activity. This helps prevent theft/fraud in real-time.

3. To prevent hefty fines and legal repercussions

With online transactions, customers trust businesses to keep their data (card/bank details) safe. All merchants need to comply with payment industry requirements, such as PCI DSS, to ensure customer protection. If your business operates in the European Union, you have to comply with PSD2 Strong Customer Authentication (SCA). Multi-factor authentication helps reduce theft or fraud. As a business, if you fail to comply with these legal requirements, it could put you at risk of:

  • Compensating victims for damages, if necessary 
  • Expenses related to litigation
  • Hefty fines by governing authorities 

4. Reduce chargebacks 

Most chargebacks occur when a cardholder disputes a charge/ transaction on their account. They may not recognize the charge and believe it to be fraudulent, hence demand a refund from their bank. This is especially common in online transactions. 

Secure payment gateways can help reduce fraudulent chargebacks by verifying the identity of the cardholder, saving you from financial losses and chargeback fees. 

5. Positioning as a global business

There is the lack of uniformity in cross-border regulations. Different countries have different legal frameworks and security standards or regulations; that need to be catered to. By implementing secure payment gateways, compliant with multiple countries, businesses can have a worldwide target audience.

6. Protect your reputation

When Uber was hit by a data breach in 2016, the customer perception dropped by 141%. Data breaches lead to customer distrust and negative publicity. Brand reputation reigns supreme for all business. Enterprise organizations sometimes spend millions of dollars to build their brand image. If one single data breach could put all that effort down the drain, you begin to see the importance of cybersecurity for all payment infrastructure. 

What are the best practices for securing online transactions?

Here are some of the best practices we recommend to brands setting up cashless payment modes: 

1. Understand your PCI compliance requirements

In 2004, four major credit-card providers — American Express, Visa, MasterCard, and Discover, created The PCI Security Standards Council. Today, the PCI-DSS standard is a set of policies that govern how sensitive cardholder information should be handled

In the simplest of terms, no business must be able to see or access the customers’ card data. For this certain things need to be in place including: 

  • Data encryption during transmission
  • Restrictions on access to information 
  • Robust firewalls and updated software and spyware. 
  • Prevent default credentials and allow customers to change credentials easily. 

2. Data encryption with SSL and TLS protocols

Any online transaction requires the customer to share credit/debit card numbers, expiration dates, and CVV. Without proper data encryption, this data could easily be hacked. 

Data encryption protocols including TLS (Transport Layer Security) and SSL (Secure Sockets Layer) can be used to encrypt data. TLS is a cryptographic security protocol that emerged from SSL, but can be considered as an upgrade for data privacy, security and authentication. 

All SSL-certified websites have “https://” or a padlock icon which denotes a secure e-payment system. With the TLS encryption in place, the sensitive information is only transferred to the intended recipient. By authenticating the server, it prevents attackers from getting access to the data. 

3. Implement 3D Secure 2

3D Secure 2 (3DS2) is used to authenticate online transactions by verifying a customer’s identity. It serves as an additional layer of authentication to make sure that a legitimate cardholder is conducting a transaction.

Here, the cardholder needs a one-time password, or fingerprint or facial recognition. This helps to prevent fraud and unauthorized transactions.

While it creates extra steps during the checkout process, for the first time — subsequent transactions at the same merchant do not require extra authentication (if approved by the card holder) 

Additionally, 3DS2 prevents false declines by providing detailed data about the transaction. This helps both businesses and customers, preventing costly mistakes.

4. Deploy multi- or two-factor authentication

Multi-factor authentication (MFA) and two-factor authentication (2FA) are customer-facing authentication processes to verify the identity of users before processing payments. This is divided into two levels of authentication: 

  1. What the user knows - Net banking or card details 
  2. What the user has - OTP, PIN or CVV. 

Multi Factor Authentication requires three or more different authentication factors in order to authorize a payment. Apart from the two, the third authentication step could be something they are (biometric data). For example in a password, a one-time code generated by an app and a fingerprint scan. 

The more factors used makes it much harder for any miscreant to access an account, even with access to the user's password.

5. Ask for Card Verification Value (CVV) 

Card Verification Value (CVV) is a three/four digit code on the back of credit cards. It helps verify the identity of a card holder during online transactions. 

In a data breach, the CVV is unlikely to be stolen since it is not embossed or stored on the magnetic stripe or chip of the card. 

6. Incorporate payment tokenization

Tokenization replaces the 16-digit card number with a digital identifier known as a ‘token’. It helps to protect the original data, while letting payment gateways initiate secure payment.

Payment tokenization helps in: 

  • Protecting sensitive payment information from being intercepted or stolen during a data breach. 
  • Helps businesses comply with regulations and legal standards, like PCI DSS and the General Data Protection Regulation (GDPR). 
  • Customers don’t need to repeatedly enter payment information for recurring payments or subscriptions, which improves the customer experience and lowers abandonment rates. 

7. Maintain security of the website 

To ensure customer safety, businesses need to keep the website, content management system (CMS), and online payments secure. Here’s how: 

  • Regularly update your website, CMS software and plugins or extensions, to patch security vulnerabilities
  • Only accept strong passwords from the customers with certain pre qualifications like capital letters, special characters, numbers etc. 
  • Use a firewall to prevent unauthorized access and to block any suspicious traffic. Deploy monitoring and fraud detection tools to detect and respond to suspicious activity on your website. 

8. Train your employees

Take appropriate steps to train employees about potential threats and steps for action. Set up sessions on data protection guidelines, multiple security measures and protocols, phishing and more. Make sure your employees understand the importance of online payment security through audits; and encourage immediate reporting of any suspicious activities.

9. Inform your customers

Make an effort to promote the data protection procedures to your customers. It is not only about providing features, but ensuring that your customers know and implement on their end; to truly make the whole process secure. 

Conclusion 

Cybersecurity is a growing concern for all businesses. Hence it is important to choose an end-to-end payment solution built with features and compliances built for high security.

PayBy digital payment solutions come with robust fraud detection and prevention mechanisms integrated into the systems. The solutions leverage AI-based fraud monitoring, 3D secure authentication and transaction risk analysis to ensure your approval rates are not impacted by cyber threats. 

Want to know more? Book a demo of PayBy today.