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Electronic payment reduces costs for businesses. By processing payments electronically, they would spend much less on paper and postage. Providing electronic payment can also help businesses improve customer retention.
Fremont, CA: The rise of electronic payments has enabled people to travel cashless. The Coronavirus pandemic has only accelerated the adoption of electronic payments. Studies speculated that global cashless transactions would have an annual growth rate of 12 percent until 2023.
Consumers find electronic payment a very convenient option for the consumer. In most cases, one only needs to enter their account information -- such as credit card number and shipping address -- once. Then the information is captured in a database on the retailer's Web server. When the consumer comes back to the Website, they just log in with their username and password. Completing a transaction is very simple as all one needs to do is confirm their purchase, and it's done.
Electronic payment reduces costs for businesses. By processing payments electronically, they would spend much less on paper and postage. Providing electronic payment can also help businesses improve customer retention. Thus, a customer is more likely to come back to the same e-commerce site where their information has already been stored.
With all the advantages of electronic payment, it is no surprise that its use is increasing considerably. Over 12 billion ACH payments were made in 2004, a 20 percent increase from 2003. The 2004 Federal Reserve Payments Study revealed that from 2000 electronic payments grew as payment by check came to a stop, suggesting that electronic payments are replacing checks.
So as to better serve their customers, banks are gradually moving to provide online bill pay services. A survey of bank executives discovered that 65 percent of community banks and 94 percent of large banks provide 24/7 online bill payment. Most of these services are free to members as well as coordinate easily with personal software programs. On the other hand, consumers can subscribe to online bill pay services such as Paytrust.