The pandemic necessitated the acceleration of the internet economy in the Philippines, and it’s clear that businesses need to embrace online sales channels to cater to a more tech-savvy market moving forward. It’s projected that by 2025, the value of e-commerce transactions in the country will reach PHP 495.2 billion, which is a substantial increase from the PHP 270 billion recorded in 2021. As a small business owner, then, it’s in your best interest to ensure you have an active online sales channel to get your piece of the pie. On top of that, you also need to pay attention to your choice of online payments gateway for your e-commerce website.
Finding the best online payment processing partner will help your business not only earn more but also save more on costs. Here are the different ways that online payment solutions can help you achieve this goal.
Reduced Transaction Fees
Choosing the right payment solution can significantly impact your business's bottom line, first and foremost, by reducing transaction fees. You want every online payment processed while saving as much as possible, so, keep in mind that these companies offer different fee structures. To maximize your savings with every transaction, then, it’s best to compare your options and select one that aligns with your business needs. If, for instance, your business tends to process more payments made via debit and credit card, then opt for online payment platforms that offer lower transaction fees for these particular payment options. This way, you can save on each transaction.
For example, if you opt for a provider with lower processing fees, you can retain a larger portion of your sales revenue. Maya Checkout, for instance, only requires 3.0% MDR + PHP 7 for every Visa and Mastercard payment made using the said processing service. Carefully choosing a payment gateway that offers competitive transaction rates enables you to save hundreds or even thousands of pesos each month. These savings can be reinvested in your business or used to offer discounts to attract more customers.
Minimized Currency Conversion Costs
For businesses catering to both local and international customers, currency conversion costs can quickly erode profits. Selecting an online payment processing company that allows you to receive credit and debit payments in your local currency can help you avoid unnecessary exchange rate fees. By using a payment gateway that supports multi-currency payments and settling funds in Philippine Pesos (PHP), you can eliminate the need for currency conversion. This, in turn, enables your business to save on conversion fees and provide a seamless shopping experience for international customers.
Fraud Prevention and Compliance with Regulations
Effective internet payment solutions come equipped with robust fraud prevention mechanisms, helping you avoid chargebacks and related fees. By reducing the risk of fraudulent transactions, you not only save money but also protect your business's reputation and maintain your customers’ trust. Compliance with EMV (Europay, Mastercard, and Visa) and PCI-DSS (Payment Card Industry Data Security Standard) means that an online payment gateway subscribes to best practices in securing transactions. By using an online payment method that employs advanced fraud detection and security practices, you can block suspicious transactions and prevent chargebacks. This safeguards your revenue and maintains customer satisfaction, as they won't have to deal with unauthorized purchases.
Streamlined Operations and Reduced Labor Costs
Some e-commerce payment solutions offer integrated features like inventory management and order processing. If you’re using a third-party payment gateway that is compatible with these integrated features, you can easily track your inventory and automate order fulfillment. This minimizes the need for manual data entry and reduces the risk of costly inventory errors, ultimately saving you time and money. In short, partnering with an online payment processing company that offers solutions that can be easily integrated with your existing tools can help you streamline your business operations, reduce labor costs, and improve overall efficiency.
Access to Analytics That Will Guide You toward Sound Business Decisions
Selecting the right e-commerce payment solution can provide you with access to valuable analytics and reporting tools. There are payment gateways that offer detailed sales reports and customer demographics. Analyzing the data provided by the payment gateway will enable you to discover products that are popular with particular demographics, for example. These insights can help you make data-driven decisions, optimize your marketing efforts, and reduce unnecessary expenses. Understanding customer behavior and sales trends through the assistance of your payment solution can be a game-changer for your business.
Flexibility in Scaling Up Your Business
As your small business grows, so do your transaction volumes. If rapid expansion is on the horizon for your business, it's crucial to choose a payment solution that can scale with your needs. At the same time, you need to look for a partner that offers pricing tiers based on transaction volume. Having this option will ensure you don't incur higher costs as you expand your operations. To demonstrate, let’s say you operate a subscription-based snack box service in the Philippines, and your customer base is expected to grow rapidly during the holiday season. A flexible payment gateway with scalable pricing allows you to accommodate the surge in transactions without a significant increase in expenses, preserving your profit margins.
By carefully considering your options and aligning them with your unique needs and business ambitions, you can maximize cost savings. When shopping for an e-commerce payment solution, be sure to include Maya Checkout in your list of options. Aside from getting affordable payment gateway services and easy integration through the use of Maya Plugins, signing up for the Maya Business gives you the chance to take advantage of the Maya Business 1-2-3 Grow bundle, which will help you maximize your savings.
This program gives you an MDR discount on 1% of all QR Ph payments. Moreover, as part of the bundle, opening and using a Maya Business Deposit as your settlement account also entitles you to a 2.5% p.a. interest, which translates to PHP 25,000 per year on a PHP 1 million deposit. Signing up for the business bundle will also qualify you for a Maya Flexi Loan offer in just 3 months, which can be quite useful for expanding your operations.
Get started today by creating a Maya Business Manager account and enjoy easy access to tools that will help you grow your small business while enjoying bigger savings.
