One common thing that applies to every business, whether big or small, belonging to any industry, place, or strategy, is the requirement to make timely payments to suppliers, vendors, and other service providers. It may seem to be a trivial matter; however, as a matter of fact, the majority of business proprietors do not give much thought to it. They pay in whatever manner their vendors ask them to, normally with the help of traditional payment modes rather than UPI, net banking or other digital modes of payment.
The issue is that even small and medium businesses frequently need to make payments regarding dozens of individual bills every month, and this tends to get accumulated over some time.
As you might already be familiar with the concept of conducting digital payments online or with the help of mobile-based applications, like a UPI app, to cover various expenses, it might be time to consider doing the same thing for your business’s accounts payable requirements.
This article will acquaint you with the difference between traditional and virtual payment modes to let you decide whether to opt for a better arrangement and understanding that will suit your business in the best possible manner.
Traditional modes of making payments have been around us for ages, and they consist of options normally accepted by the vendors directly, thus making them a default choice for small businesses that do not wish to rock the boat. Some of the widely used and accepted traditional payment modes include the following:
- Cash
- Checks
- Payments via phone
- Transfers facilitated directly with the help of the bank
However, it is the correct time to switch towards digital payment modes by rocking your boat.
- Digital B2B platforms and websites let businesses make payments of all their bills and expenses under a single roof, be it with the help of an application or a website.
- Such tools and resources make AP handling simpler and more convenient by enabling you to schedule and fix payments well in advance, use many payment modes per your present cash flow requirements, and, thus, let you have a sound transaction record.
- Though many businesses are switching over to virtual payment options, it is to be noted that traditional payment methods are still prevalent. Entrepreneurs are often busy and may seem reluctant and rigid when it comes to adapting new patterns for modifying their workflows.
- Well, we can compare both modes of payment. Hence, a better alternative to traditional payment modes is accessible and available due to the vast technological advancements that are or have already taken place.
Traditional payment modes such as cash, might get lost, misplaced, or even stolen as they are actual objects. In contrast, digital payment modes are safer, providing protection layers and encryption and the assistance of a bigger company to ensure your funds do not fall into the wrong hands.
Also, digital payment methods let you pay all your bills and expenses from a single place, irrespective of the selected delivery or payment mode, which is not the case with traditional payment methods.
Conclusion:
Though traditional payment methods appear familiar, that does not necessarily imply they can be as comfortable as old shoes. Traditional payment modes are not very convenient, time-consuming, and difficult compared to digital modes of payments.