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How SMBs are Overcoming New Challenges through their Payment Strategy

James Robertson, Banking CIO Outlook | Monday, August 09, 2021

Providing goods and services online may not be as expensive as it once was. Many e-commerce platforms are now incorporating payment solutions — the 'Plug'n Pay' solutions provide merchants with a great deal of flexibility in terms of customizing the content, price, and overall consumer experience.

FREMONT, CA: Each industry's move to digital was unique, and as a result, merchants had to react fast to new obstacles. We have undoubtedly observed an increase in the retail and hotel segments during the pandemic. They discovered ways to keep their firm solvent, whether it was by starting an online shop or by selling restaurant takeout. Money solutions such as pay by link and click & collect were effectively deployed, greatly assisting merchants by allowing them to continue operating despite forced store closures and to obtain payment from customers prior to supplying the goods or service.

Financial implications

Providing goods and services online may not be as expensive as it once was. Many e-commerce platforms are now incorporating payment solutions — the 'Plug'n Pay' solutions provide merchants with a great deal of flexibility in terms of customizing the content, price, and overall consumer experience.

Managing logistics, on the other hand, might be difficult when launching an online store. Building infrastructure, which includes everything from distribution models to shipping and returns management systems, costs money for online merchants. An effective technique for addressing consumers' expectations for free refunds is to incorporate this into the business model and price from the start. When you include in Brexit and the repercussions of cross-border purchases, such as delivery delays and increased transaction costs, it can be difficult to say the least.

Another issue worth addressing is the lack of liquidity, which was a source of concern for smaller merchants in the early stages of the pandemic. SMBs were robust in the early months, but they soon began to struggle. Many people, even small and medium-sized businesses, were taken aback by the protracted lockdown that began at the beginning of the year. They negotiated this uncertain era with confidence, knowing that they required cash flow to pay employees and manage inventory without relying on too many savings.

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