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Why Offering Multiple Payment Methods Is a Must for SMBs
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For small and midsize businesses, the way customers pay can be just as important as what they buy. Today’s shoppers expect flexibility at checkout, whether online or in person. A study conducted by Acquired.com shows that 73 percent of consumers will abandon a purchase if a website makes checkout difficult. With competition higher than ever, businesses that fail to offer multiple payment options risk losing sales and revenue.
The good news? Managing multiple payment methods doesn’t have to be complicated. Let’s explore why offering multiple payment options is essential, how businesses can implement them and the challenges of — and solutions to — handling various payment methods.
Why offering multiple payment methods is a necessity
Consumers are more digitally connected and convenience-driven than ever before. They expect businesses to provide a frictionless checkout experience that allows them to pay using their preferred method, which could be a credit card, a digital wallet, or a buy now, pay later (BNPL) service.
Offering multiple payment methods provides several key benefits for small businesses.
- Increased sales and conversion rates: Research indicates that 73% of millennials and 66% of Generation Z consistently use contactless pay, such as tap-to-pay features that let customers pay with just a tap on a mobile device. A limited selection of payment options will lead to lost revenue, since customers may leave and purchase from a competitor that offers more flexibility. Accepting multiple payment types helps ensure that customers can complete their purchases without hesitation, ultimately boosting conversion rates and maximizing sales opportunities. It’s predicted that overall contactless pay revenue will rise from $35.4 billion in 2025 to $90.6 billion by 2032.
- Higher customer satisfaction and brand loyalty: Consumers appreciate businesses that prioritize their convenience and preferences. Businesses create a smoother, more enjoyable shopping experience when they accept a range of payment methods, which can lead to repeat business and stronger customer relationships. Satisfied customers also are more likely to recommend a business to others, helping to increase brand awareness and attract new buyers.
- Expanding customer reach and accessibility: Every customer has different payment preferences. By accommodating multiple payment types, businesses can serve a wider audience and appeal to customers across different generations, income levels, genders and financial habits.
Payment methods your business should offer
Thanks to modern payment solutions such as QuickBooks Payments and its GoPayment app, small businesses can easily accept a wide range of payments — including the latest tap to pay. To meet the needs of diverse customers, businesses should consider implementing a mix of the most common payment options.
- Cash: The use of cash has declined, but many customers still rely on it for in-person transactions. Accepting cash ensures businesses cater to all demographics, including those who may not have bank accounts or prefer not to use digital payments. Cash transactions also help avoid processing fees associated with electronic payments, making them a cost-effective option.
- Debit and credit cards: Payment cards remain the most widely used transaction method globally. With the rise of contactless and chip-enabled payments, businesses must ensure they can accept both physical and digital card transactions. Offering support for major card networks, such as Visa, Mastercard and American Express, also ensures that customers can pay with their preferred provider.
- Digital wallets: Mobile wallets, or digital wallets such as Apple Pay, Google Pay, Samsung Pay and PayPal, offer a fast, secure and convenient way to pay. Many consumers prefer mobile payment apps because they allow for quick, touch-free transactions, reducing wait times and making checkout more efficient. With more smartphones supporting contactless payments, businesses that accept digital wallets can enhance customer convenience and increase checkout speed.
- Automated clearing house (ACH) transfers: ACH transfers or bank transfers are ideal for businesses that handle large transactions, such as real estate. ACH transfers provide a secure and cost-effective way to accept payments directly from a customer’s bank account, often with lower processing fees than credit cards.
- Buy now, pay later: BNPL services, such as Klarna, Sezzle, Afterpay and Affirm, have gained popularity since they allow customers to split payments into installments. That makes big-ticket purchases more accessible. Many consumers prefer that option because it provides greater financial flexibility without requiring a credit card. Businesses that offer BNPL services can increase average order values and attract budget-conscious shoppers.
How to offer multiple payment methods
The benefits of providing multiple payment options are clear, but it’s not always as obvious how to get started. The good news is that setting up different payment methods is easier than ever, thanks to modern payment-processing solutions.
- Cash and cards: A point-of-sale (POS) system with a card reader and cash drawer is the standard way to accept payments in physical stores. Businesses should ensure they have the right hardware and software to process both chip-enabled and contactless credit and debit card transactions. [Related: How to Accept Credit Card Payments: A Beginner’s Guide]
- Digital wallets: To accept Apple Pay, Google Pay or PayPal, businesses must work with a payment processor that supports digital wallet transactions. Most modern POS systems and online checkout platforms now include built-in digital wallet compatibility.
- ACH transfers: Businesses can set up direct debit payments through their bank or use a payment processing service such as QuickBooks Payments, which allows customers to pay directly from their bank accounts with minimal fees.
- BNPL services: Partnering with a provider such as Klarna, Affirm or Afterpay enables businesses to offer installment payment options at checkout. The services can be easily integrated into e-commerce platforms or POS systems.
Managing multiple payment types may seem complex, but modern technology makes it simple. QuickBooks Payments, for example, offers an all-in-one solution that integrates multiple payment options into a single system, helping businesses streamline transactions and reduce manual work.
For small business owners who want to offer tap to pay, QuickBooks GoPayment eliminates the need for additional hardware. The feature allows businesses to accept contactless payments with a phone. Customers can pay using their credit card, debit card or digital wallet simply by tapping their phone on the merchant’s mobile device. That advancement makes it easier than ever for SMBs to offer seamless, flexible payment options without investing in extra equipment. If a company owner prefers a card reader for contactless payment, QuickBooks offers a reader that connects to a tablet via Bluetooth.
Challenges to consider when accepting multiple payment methods
Offering various payment options is beneficial, but businesses should be aware of potential challenges and how to manage them.
- Reconciling multiple payment types: Handling different payment streams can be complex, leading to accounting errors and reconciliation issues. Solution: Use integrated accounting software such as QuickBooks to track and reconcile payments automatically.
- Processing fees: Some payment methods, such as credit cards and BNPL services, come with higher transaction fees. Solution: Businesses can adjust pricing strategies to absorb costs or encourage lower-fee payment options.
- Security and fraud risks: With more payment types comes greater exposure to fraud. Solution: Choose a payment processor with advanced security features, such as QuickBooks Payments, which offers fraud detection and encryption. [Related: QuickBooks Online Review and Pricing]
- Hardware maintenance: POS terminal systems and card readers can become outdated or require frequent maintenance. Solution: Tap-to-pay technology eliminates the need for external card readers, reducing equipment costs. Many credit cards allow for contactless tap-to-pay transactions, as well.
Flexibility is the future of payments
In today’s competitive business landscape, offering multiple payment options isn’t optional — it’s essential. Customers expect flexibility, and businesses that provide seamless, convenient payment experiences will see increased sales and customer loyalty.
With modern payment solutions such as QuickBooks Payments and the GoPayment app, accepting multiple payment types has never been easier. Tap-to-pay technology is leading the way, allowing SMBs to accept payments with nothing more than a smartphone.