The Best Electronic Payment and Cash Apps for a Small Business

The Best Electronic Payment and Cash Apps

What Are Electronic Payment and Cash Apps?

Payment apps are digital tools to send money and pay for goods or services. And, it’s a faster and easier way to handle financial transactions for small business owners. In each app, you create a digital wallet with electronic payment and cash apps that link to your credit card or bank accounts. Then, you can send money without having to make a trip to the bank. The best part is that since so many different types of businesses accept cash apps, you can use them almost anywhere.

Why Do Customers Prefer Electronic Payment and Cash Apps?

If you’ve ever used them, then you’ll know why people like the convenience. First and foremost, it’s faster and easier than carrying cash. Just share your code or find the recipient in the app, and then you can send money instantly. You avoid the hassle of digging in your wallet or having to carry change. And, if you go out with a group, you don’t have to worry about splitting the bill or getting stuck with the check.

Another reason people prefer these apps is because of the added level of security. There is less risk of having your information stolen with a digital wallet. Those who use third-party payment apps won’t need to swipe their card or enter their information for online retail sites. At a time when identity theft is on the rise, electronic payments provide another layer of protection.

How Can Electronic Payment and Cash Apps Help Your Business?

Not only do many customers prefer cash apps, but they can also help your business grow. With so many apps linking through social media, you can reach a wider audience than ever before. And, new customers will have no trouble paying for your services when you provide several electronic payment options.

From a business perspective, they offer several advantages as well. First, it makes accounting infinitely easier. For example, with PayPal, you can create and send invoices in minutes. Not only does this make the response time faster, but it also ensures you’ll never lose track of payments. And then, don’t forget the added security it gives your business as well. It’s just one more digital tool to help you adapt and expand.

The 3 Best Electronic Payment and Cash Apps

1. Zelle

The best thing about Zelle is that it’s already available with many mobile banking apps. Since most major banks offer it, it has become one of the preferred electronic payments. Even if your bank doesn’t offer it, you can quickly set up an account and send money to other users. It instantly funds transactions. However, it’s fastest when both people already have existing accounts.

Zelle is compatible with iOS and Android users, and offers its services for free. But, banks may apply their fees. Each bank also sets its own limits for weekly transfers as well. However, if your bank doesn’t offer Zelle, you can only send $500. And it isn’t ideal for people outside the U.S since it doesn’t allow you to link your account to a credit card or international bank account either.

2. PayPal

PayPal is one of the most widely recognized and trusted electronic payment systems. It’s available in 200 countries and has a range of tools for both personal and business accounts. It’s easy to use and offers some of the strongest encryption and security features out there. However, the high limits and invoicing tools make it especially attractive for small businesses. Its flexibility makes it easier to adapt and scale your business when the time comes.

Unfortunately, the convenience comes at a price. Customers pay an additional 2.5% + a fixed fee if the account links to a credit card. Commercial accounts will also be charged an additional 2.99% + a fixed fee to receive domestic transactions. And then, there is the 3.49% + a fixed fee for invoicing. Don’t forget, there are extra fees for international transactions as well.

3. Venmo

Although some of the other electronic payments focus on commercial tools and features, small business owners shouldn’t overlook peer-to-peer cash apps. Venmo is a great way to connect with customers and attract attention from social media. It’s compatible across all platforms and links to other popular apps. Venmo is a great way to grab some free publicity since it also offers more social features, such as people posting and thanking you for your products.

However, you can’t overlook its limitations and past security concerns. First, you have to change your privacy settings for anything you don’t want to be made public. Then, it’s only available in the U.S. And then, some fees apply. Venmo charges 3% of transfers funded from a credit card and 1% for instant cashouts. Don’t forget, it caps your spending at $299.99 per week. But, this can be increased to $4,999.99 once you verify your identity.

Things to Consider

When choosing the best electronic payment and cash app for my business, there were a few important considerations:

  1. Which ones are compatible with my and my customers’ devices?
  2. Can I use it to track invoices and payments?
  3. How much will I pay in fees?
  4. Does it offer any rewards?
  5. What kind of protection is there against fraudulent charges or mispayments?

The Best Electronic Payment and Cash App for My Business

After doing my homework, I finally came to a few decisions about which electronic payments and cash apps worked best for my needs. My first choice would have been Zelle since it is the preferred method for my major clients. Unfortunately, the credit union that handles my business accounts doesn’t have it. Although I could download the app, this obstacle pushed me in another direction.

The suite of tools and convenience that PayPal provides is unmatched. They have a more sophisticated invoicing system that can easily manage multiple contracts and clients. And,  it is utilized by everyone I work with. I have yet to meet a client who didn’t accept or use them. It was the easy choice since I already had an account linked to my banks. And, there were no concerns about transferring money since I already have an established payment history with them.

While they do charge substantial fees for the convenience, I feel it is worth it for the service. However, the smartest move is to utilize all three if possible. The more accessible you become to potential customers, the greatest chance you give your business to thrive.

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