Thanks to modern payment tools small business owners are able to pay and get paid with ease. Whether it’s an online invoicing platform or cloud accounting software we’re simply getting more efficient. More and more small businesses are shifting towards online payments for this exact reason. One solution that is rapidly growing in popularity is eCash.
eCash is a form of electronic payment that allows businesses to swiftly and securely make payments. This payment is most often used with the introduction of digital wallets. A digital wallet allows you to send this electronic cash to and from your clients. No more sending paper invoices or waiting for checks in the mail. That said, here’s what you need to know about eCash and your small business.
What is eCash?
As we mentioned above eCash is short for electronic cash. This type of payment was created so business owners could transact in a completely digital environment. For example if I contract a client for some design work I can bill them in a number of different ways. Traditional methods include cash, check, and credit card each with their own pros and cons.
With eCash I can simply ask my client to send me payment in the form of eCash using a digital wallet transfer or an eCheck. Typically the funds are instantly transferred to my wallet where I can either keep them there or withdraw to my personal checking account.
eCash is great because it removes most transactional middlemen and allows you to make quick and direct payments. Here are a few more advantages of using eCash:
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Low Transaction Fees
Credit cards are one of the most popular payment methods because it’s convenient. The downside to credit cards however is that they can be quite expensive for the merchant. Credit card transaction fees can be as high as 3% per transaction. With so few options prior to credit cards, financial institutions could easily set prices to whatever benefitted them most. Nowadays there are plenty of options like eCash that cut down transaction fees significantly. eCash transfers can be as little as 0.8% or even free.
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MicroPayments and Payouts
Another benefit of eCash is the ability to use micro-payments. With so many technologies available it’s common for companies to work together and share in revenues using referrals and micro payouts. Typically these payouts amount in less than a dollar. By eliminating most transaction fees you can easily setup your digital wallet to automatically make thousands of micro-payouts to your partners daily!
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International Payments
The greatest thing about eCash is that there are no exchange rates. This is why cryptocurrencies like Bitcoin are becoming increasingly popular because someone in Ukraine and India can pay each other using the same currency. The more popular eCash becomes the more applicable this will be in the modern market.
What’s the Future of eCash?
As more and more merchants and consumers adopt this payment method it will slowly become the preferred method of transacting. Modern financial institutions have so many middlemen that it’s nearly impossible to know how many hands your money touches before it reaches its final destination.
Companies like PayPal and Apple are paving the way for eCash and digital wallet solutions around the world. That said, you should definitely gear up your small business to adopt eCash solutions.
