Payment links are being increasingly adopted as a preferred payment method by businesses around the globe.
Let’s dive into what they are, who’s using them and whether or not you should be sending payment links in your business.
What is a Payment Link?
A payment link is a secure pay-by-link system that can be likened to an EFT without the hassle of inputting banking details.
Payment links are generated by the seller, usually via an app or desktop program. The link is then shared with the buyer. Once they click the link, they are directed to a payment portal where they will plug in their banking details and complete the transaction. The money is then deposited into the seller's bank account.
There’s little to no learning curve when it comes to sending (and receiving) a payment link.
Should My Business be Using Payment Links?
Most probably, yes. If you’re a business owner in 2022, payment links have a place in your business.
Payment links save time, improve reputation and make it easier to bridge the gap between interest and conversion. How often have you lost interest in a purchase when you saw you had to put somebody else's banking details to do an EFT?
When you send a payment link, however, customers are more likely to complete their payment in the moment, as it requires less mental strain.
As we said earlier, payment solutions say a lot about a business. A business that deals in cash only sends a message that they haven’t kept up with the times. A business that uses card machines signals that they’re legitimate. A business that uses neither (or both) but still has another way to get paid? Exceptional.
If your business is technologically advanced, it makes sense that your payment solution should be in line with the latest fintech.
You may not feel your brand is “modern” enough to use payment links. But that doesn’t mean your customers won’t appreciate an easier way to pay.
Traditional businesses will always be necessary. People need “everyday” services just as much as they need modern or niche ones. What makes a difference is how you decide to cater to younger customers, who will grow into your loyal customers one day.
Payment links are a great way to start if you’re a small business owner who’s just starting to find your feet in the fintech world.
They’re ideal if you’re not ready to invest in a card machine or fully-fledged POS system, as you’ll only pay a low transaction rate per sale.
Payment links lower the barrier to entry as you can accept payments without an online store, ecommerce website or physical storefront. You can use them to test and build your business without investing loads of cash.
Remote work has risen in popularity since the COVID-19 pandemic. People are choosing to work from anywhere but the office. Of course, that means you maybe aren’t getting paid by one person or on a specific date.
You could be getting paid in the middle of the month by one client, the end of the month by another and anywhere in-between. Plus, these clients often aren’t in the same location as you. Payment links make it easier to stay on top of sending payment requests and getting money in the bank!
Discover: Why are Remote Payments the Future?
When Should I Use a Payment Link?
Payment links don’t need a special occasion – they can work sufficiently as your primary or supplementary payment solution.
Here are a few scenarios that would be perfect for sending a payment link.
For Far-Away Customers
Businesses today exist in a global village. There are essentially no boundaries to who you can sell to. If you want to expand your services across the country, a payment link is an effective way to ensure you’re getting paid even when your customer is thousands of kilometres away.
Certain payment links also work globally, which means you can accept and make international payments by sending a link. Payment links are the perfect ecommerce partner and can help you create an easy, seamless payment experience for both you and your customer.
For Direct Deposits
Deposits protect your business whether you run a “book by appointment” service or deliver large-scale projects. They exist to help you secure money in the event your customer disappears off the face of the earth.
Every time you send a payment link, your app or dashboard program will generate a unique and non-reusable link.
Use a payment link to send a deposit request before the job and another for the remaining balance after the job is done. This way, you can avoid the losses from “no-shows” or customers who decide they’re no longer interested after you’ve spent money on materials, labour and time.
Do you deliver your products directly to your customer? If so, payment links are a handy tool to have in your back pocket.
Let’s say you arrive at your customer's door, and they haven’t had a chance to draw cash, or your card machine has run out of battery or signal. No issues here, just whip out your phone and send them a payment link then and there.
For Social Media Businesses
All social media users, active or passive, have had a front-row seat to the revolutionary growth of social media businesses. You no longer need a fully developed website or ecommerce store to run an online business. It’s become possible, if not completely normal, to use a beautifully curated social media feed as your place of business.
Payment links make business easier. You don’t need to ask for your customer's email to send them an invoice, nor do you need to send your banking details.
Rather copy, paste and send a payment link into a direct message on ANY social media app. You can send a payment request whether your customer reaches out over Facebook, Instagram or WhatsApp.
If you're curious about building a successful online business, read The Hitchhiker’s Guide to Making Money Online.
For Digital Invoices
The off-putting thing about invoices is inputting somebody else's banking details. There’s just too much room for error.
Plugging a unique payment link into your digital invoices makes the process smoother for everybody. The link will also never expire until it has been used to pay so that you can send them well in advance.
If you’re looking for a way to tighten up your digital invoices, payment links are it.
How Can I Start Sending Payment Links?
You can start sending payment links with us by downloading the free iKhokha app and completing your iK Profile. From there, you can send payment links to anyone, anywhere, anytime at one of the lowest online transaction rates around.
With iK Pay Link, it’s as easy as counting to three:
- Create a link
- Send it
- Get paid!
If this sounds like the right payment solution for your business, head to our website to learn more and get signed up for free.