Payment-led Growth for a Startup Business: Is It Possible?
The Indian business environment has changed and expanded significantly over the past few years. You can easily learn about the massive changes within businesses and how they run.
If you dig deeper into the finer points of its existence, you will discover two elements that have grown simultaneously. The first is the number of startups that are based in the country. The second is digital payments. The number of recognized startups, including startups just getting established and unicorn startups increased to 72,993 at the end of June 2023 (Source). On the other hand, the market for digital payments in India is predicted to grow by three times in size from $3 trillion up to $10 trillion in 2026 (BCG report).
Like starting a business, accepting online payments is more complex than it is now and is an integral aspect of business cycles. If you want to bring your startup from the beginning stages, this is the best opportunity to do it and embrace digital payment for startup businesses.
Before you make that decision, it is a good idea to know if you could avoid the potential obstacles to starting your business with the appropriate payment solutions on your side. Let us walk you through the various aspects of the payment world covering a startup business.
How is the payment process once it’s accepted digitally?
No matter what you offer under the roof of your startup, regardless of what you sell, you will eventually need to be paid. In simpler phrases, the payment route is from the customer’s credit card and bank account to the company’s bank account.
The cash is delivered electronically when a client buys what you sell online. But it’s more complex than that. There are many participants or stakeholders which, include:
- Customers purchasing your products or services
- Merchant or owner of a startup (you) who sells the products or services and wants to be compensated
- Issuer or bank that offers payment services or cards to customers
- You are acquiring a bank, acquirer, or bank that makes payments on your behalf and transfers the funds into your merchant account.
- Card associations include MasterCard, VISA, American Express, RuPay, etc.
The payment flows between all these parties to ensure the transaction is completed and you get money at the end of the day.
Why should you be concerned about the aspect of payment for your business?
The world of digital payments in India is constantly evolving. On the one hand, there are demands from consumers for digitally-powered payment options that are available for everything they purchase. However, there’s a vast choice of payment options and new fintech companies entering the market. This could make finding a reliable payment service provider that matches your business’s requirements difficult.
- Before you decide on the best solutions, it is essential to understand the fundamentals of the earth before accepting payments online and offline. It would help if you also considered some similar patterns.
- Trends and insights that are important for startups.
- The world’s online retail sales surpassed the threshold at USD 5.2 trillion as of 2021. They are expected only to reach higher heights in the days in the future.
- Smartphones were responsible for over 70% of all sales site visits worldwide.
- Consumers are accustomed to using different channels and expect businesses to deliver the items they need wherever they’d like them and when they’d like to purchase them.
- Nine percent of customers abandon carts because they cannot use all payment methods accessible to select from. In addition, the abandonment rate for the APAC region is 76.3 percent.
- Will the success or failure of payment impact the development of your new company? Keep reading.
What does this mean to your business?
In the end, the success of your business is contingent on how well your business idea addresses the problem and to what degree the general public accepts it. In this case, the payment procedure’s significance, an essential element in establishing business trust, should be considered. Think about this scenario –
A potential customer is impressed by your business concept and is eager to purchase your products. After browsing through your inventory and selecting a few items, he adds them to the shopping cart and goes to the payment. He could not finish the price because the preferred payment method needed to be listed in the shopping cart.
It can happen to nearly all small or huge businesses, leaving a substantial customer base unreachable. The only thing you have to do to include the customers and convert them to loyal clients is a simple payment method that covers the majority of the payment options accessible (not to mention you must ensure the high quality of your products or services matters more).
- Online, offline, remote, and much more – make the payment process at any stage.
- You can begin accepting digital payments in a variety of ways to each facet of your company –
- The QR code and the POS machine for stores that do not have POS
Suppose your business sells goods or services from local brands in multiple outlets or stores in locations. In that case, it is possible to obtain dynamic or static QR codes that allow for simple payment acceptance. In addition, you could install a POS machine for each of your shops and connect them all to an account on your account for merchants. Every time a client walks into your establishment, he/she can pay by using a scanner or tapping a debit or credit card on the POS machine.
Links to payment for remote payments collection
If your service or product requires going to the customers in person to hand over the item bought, supplying a POS machine to each delivery service may not be practical. This is the reason you should benefit from the use of payment links. When a service or product is offered to the customer, the delivery representative or service manager can make and share an online payment link with the client. However, the consumer can click the link to pay using any of the mentioned payment options.
A payment gateway that accepts online payments using an app or website
A payment gateway integration is required if your company sells its products or services online and requires that the client receive payments before accepting an order. Suppose you plan to sell through an app, a website, or both. In that case, the proper payment gateway will allow the acceptance of payments via various payment options (cards UPI, cards net banking, and the possibility of digital wallets for price).
- Additionally, you could profit from offering brand, or bank provides to your customers that the payment gateway supports it.
- Change on Paytm for Business to take advantage of their full payment suite designed specifically designed for entrepreneurs.
The process of acquiring different payment solutions can be an overwhelming task. But it’s simple when you select Paytm for Business to meet all your startup payment needs. In addition to Paytm QRs, Links and Paytm Payment Gateway are available. You can make use of our many payment options to enhance your business.
However, you can leverage the potential of the Paytm Mini, Paytm Ads, and Paytm banking instruments to make your life the most effective.