Four factors to consider when choosing a payment method
Various financial institutions have risen around the world to give everyone various means of payment, allowing economies to thrive and maintain all kinds of industries. Having this many payment options is great for all businesses but some are better than others for certain kinds of users. The best way to determine which is best for you is to enumerate your selections and assess them by how they execute the following factors:
E-wallet functionality to accept and send payment as a third party
Many payment methods offer only bank transfer services while others use a credit system. An e-wallet feature means it can store your money so you always have a budget on hand for quick purchases. This allows you to pay at a cheaper rate than what your bank would have charged you if you used a bank transfer service or remittance.
E-wallets should have various means for topping up. The best of which is to link it to your bank account for easy withdrawals that won’t need an ATM. Another popular method is using a remittance or convenience store’s service to send money to your e-wallet account like Recharge & Get Paid.
Support for cryptocurrencies for storage and exchange
Cryptocurrency is a booming industry that has allowed many Nigerian businesses to grow. It’s the better currency for accepting payment from international customers as you don’t need to convert foreign money into Nigerian Naira. This skips the fee and keeps you safe from inflation.
Even if you don’t plan on investing in cryptocurrency, you should still consider using a payment method that supports it. This is a clear indication that the platform’s admins know how to invest to keep its platform afloat and functional. Cryptocurrency also has rapid growth so all payment methods supporting it also improve more rapidly than other financial services.
Access to services for all kinds of users
All finance services’ goal is to connect stores with their customers as a platform for transactions. However, every payment method is dedicated to a certain kind of customer rather than everyone so they can better provide specific features. One of the biggest factors to this is security as payment methods will ask customers to give personal information in accordance with the know-your-customer (KYC) protocol.
Payment methods that don’t need to follow the KYC protocol often have a lower rate of security. However, it’s easier for businesses to support them and customers are more likely to rely on them for small purchases.
Number of supported businesses both local and international
The sheer number of businesses supporting a payment method is a good indicator of its quality as a financial service. More importantly, it offers you more options to use your money either as a means to earn or a way to use otherwise physically inaccessible services like offshore shops. The number of local businesses accepting the payment method is valuable as well as it allows the user to use it consistently as opposed to having to carry cash all the time.