This editorial was first published in our Online Payments and Ecommerce Market Guide launched on 1 November 2017. The guide features several important thought leadership editorials from ecommerce and payments industry professionals, which makes it a top-reference source for anyone involved in the payments ecosystem.
SMEs, the small and medium enterprises, are non-subsidiary, independent firms which employ fewer than a given number of employees, with a certain amount of annual sales, assets and many other factors, varying per country. In Europe, for example, a firm with no more than 250 employees is considered to be an SME.
The role of online payments for SMEs
SMEs generally work with limited capital and they are always in the growing mode. Cash-flow remains an issue for this kind of enterprises. Larger clients of these entities impose lengthy payment terms on suppliers, forcing many SMEs to navigate the complex, often expensive, finance options available to them.
Apart from that, any online payment solution is a key issue for small and medium enterprises. A large number of this kind of companies is still using primitive ways to accept payments, in both B2C and B2B model. The need of the hour for small and medium businesses is one robust and effective online payment solution, which could create a bridge for transferring and receiving funds easily.
Online payments can also drastically help SMEs to grow their business and soar their revenues. These payment solutions can save businesses time and money, even if they do not run an ecommerce website. They offer clients more ways to pay, cut away expensive transaction costs, and allow SMEs to manage payments in a more streamlined manner.
Advantages of online payments for SMEs
1. It offers new opportunities: online payment methods allow conveniently selling goods and services online. SMEs who are currently dealing in brick-and-mortar can expand their business online through ecommerce.
2. It offers instant payments: one of the great advantages of online payments is that the payment is quick and hassle-free. One can easily make a payment sitting comfortably at home or office.
3. It boosts merchant reliability: customers today often consider merchants more reliable than the online payment methods available on their site. It encourages them to do business with the merchant.
4. It gives a competitive edge: for a merchant, accepting online payments can improve reputation, allowing it to gain the trust of the customers. Moreover, when others have online payment systems, you cannot afford to ask for payments via cheques.
5. It influences buyers: An online payment method may influence customers to purchase items listed on the website. Since the transaction is quick and easy, and one can pay via credit cards, buyers are more likely to grab the deal, if there is an online payment system in place.
6. It offers credit card payments: customers can use their credit cards to make payments, even though they do not have money in their bank account. More importantly, you can break down the payment into several instalments.
SMEs in Hong Kong versus Europe
SMEs in Hong Kong account for 98% of total business units and 47% of total employment, whereas in Europe there are 21 million SMEs, which is over 99% of all businesses.
If we take a comparative approach in SMEs’ sector for both Hong Kong and Europe, SMEs in Hong Kong have started moulding themselves into technological enterprises, utilising the power of online payments in their businesses. Payment Asia, one of the key players in the region providing online payment solutions, has helped many enterprises with online payment solutions. Powering the business with online payment helped SMEs increase their revenues as well as enter new business horizons.
Payment Asia is a leading e-payment service provider in Asia, who has facilitated valuable partnerships between a number of local and international e-business application providers. With a strong determination to ensure that enterprises can reply on a business-friendly environment and make the most of the cross-border activities inside and outside Europe, our potential business partners across Europe are well served. As a valued affiliate of Payment Asia, partners benefit when we become even bigger and stronger as a team.
About Ziahn Hata
A graduate of Business School Lausanne, Ziahn has years of experience in Financial Product Management, working for Standard Chartered Bank and BlueSnap. As a consultant, his main focus is business development, banking relationships management and playing an advisory role to clients that require a tailored placement.
About Payment Asia
Payment Asia is a payment service provider, which is specialized in electronic payment solution. We are experts in providing reliable and productive payment solutions for merchants. Payment Asia provides merchants with a comprehensive business payment solution that is cost-effective and can simplify the real-time process of various payment options such as credit card, debit card, and mobile payment.
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