In a cashless economy, staying ahead of your competitors requires more than just quality production. Your manufacturing business must have effective and transparent operations like smooth payments and online transaction processes. Companies that use cash instead of digital payments may face challenges like needing to carry cash all the time, keeping track of transactions, robbery, and more.
These problems don't just slow down your business, they also make it harder to grow and keep you behind competition.
In this blog post, we will learn how you can use TranZact's digital payments to transform your manufacturing business into a cashless economy easily.
Understanding Digital Payments
Digital payment services involve transferring money from one person’s account to another using electronic banking networks. Most Indian SMEs must make multiple transactions daily and move large amounts of cash from one place to another. Digital or online payments make it easier for them to send or receive money without worrying about carrying hard cash everywhere.
A statista report says that almost 164 Billion digital payments were made in the financial year 2024. In comparison to the time before the COVID-19 pandemic, people have been seeking more reliability, security, and speed in their day-to-day transactions.
To learn more about Payments, read this blog - Payments | TranZact.
Types Of Digital Payment Systems
Digital transactions are made through various systems that depend on your convenience. Most manufacturers use digital payment systems such as UPI, mobile wallets, and more for day-to-day transactions.
- Credit/Debit Cards: It is a traditional payment system that lets you make online transactions with security options like OTP (One-Time Password).
- Online Banking: It helps you make direct bank transfers to settle bills, make purchases, or send money. You get options like NEFT, IMPS, and RTGS.
- UPI: This real-time payment system allows you to make transactions using either a QR code or UPI ID, and it can be easily used on mobile devices.
- Mobile Wallets: These help you store funds electronically in payment apps like Paytm, PhonePe, and BharatPe to make instant payments.
The Rise of the Cashless Economy
A cashless economy is a system where people make digital payments instead of depending on cash. Countries across the world are transforming into a cashless economy to provide transparency, collect taxes, and lower robberies. The global cashless economy has grown since the COVID-19 pandemic, which made people look for safer and contactless ways of making payments.
Manufacturing firms are also able to make profits from a cashless payment system through faster transactions, lower handling costs, and smooth operations. Cashless payment solutions also help you handle foreign clients and do easy trade across countries.
Read about the Cashless economy in India, its benefits, importance, and more.
TranZact’s Digital Payment Solutions
TranZact’s digital payment services help you make day-to-day transactions and receive payments with ease and safety. From saving over 30% of your time to offering various payment-related features, TranZact also reduces your DSO (Days Sales Outstanding) by up to 20%.
The key features of TranZact’s cashless payment solutions include:
- Easy Transactions: With TranZact, you can simplify your business transactions while reducing manual effort and the risk of error. It also helps you with mapped collection and bulk payouts.
- Payment Reminders: It lets you automate your clients’ overdue or upcoming reminders while reducing the chances of missed payments and improving your cash flow analysis.
- Automated Reconciliations: It helps you automate ledger management through the auto-creation of vouchers and real-time ledger reconciliation.
- 24/7 Projections: It offers you real-time debit and credit projections from invoices and has a clear and updated view of your business’s cash flow.
TranZact’s digital payments solutions are specially designed for Indian SMEs and allow easy integration with your existing financial systems. Whether you use cloud ERP software, CRM tools, or e-commerce platforms, TranZact lets you implement digital payments in just 14 days without affecting your current operations.
Benefits of Digital Payments
The advantages of digital payments include convenience, improved cash flow, and reduced handling costs. Systems used to send and receive online funds also help you speed up the transaction processing.
- Convenience: Cashless payment methods make it easier for you to send or receive money from your wholesalers and retailers while helping you connect with clients across borders and manage multiple currencies.
- Fraud Detection: Digital payments allow you to prevent fraud with security features like multi-factor authentication, encryption, and real-time monitoring.
- Handling Cost: Cashless transactions require fewer resources to process, which helps you prevent unnecessary expenses.
- Transaction Management: Online transactions with tools like TranZact help you with automated bookkeeping, real-time transaction updates, and monitoring.
- Sustainable Operations: Cashless payments let you make your business operations sustainable, as it require less usage of paper cash.
Read about How SMEs Can Transition to a Cashless Economy: A Step-by-Step Guide
How to Implement Digital Payments with TranZact?
While implementing digital payment systems in your business, you must consider factors like transaction goals and convenience. TranZact's digital payments system makes it easier with multiple integration options, features, and benefits.
A Step-By-Step Guide To Integrating TranZact’s Digital Payment System
Implementing TranZact’s digital payment systems is easy, and here is the simple procedure. It will offer you convenience and security for your business transactions.
- Step 1: Consider your business’s specific digital payment needs, including clients’ preferences, transaction volume, and existing systems.
- Step 2: Connect with TranZact’s team to set up a payments module according to your business’s specific needs.
- Step 3: Take advantage of TranZact’s integration capabilities to implement digital payments systems into your existing business operations.
- Step 4: Once you launch the newly integrated digital payment systems, test them to make sure transactions are done correctly.
- Step 5: Keep your cashless payment systems updated to make sure your business transactions stay safe from cybercriminals.
Tips For Smooth Transition To A Cashless Payment System
While moving to a cashless payment system, make sure the implementation doesn't affect your business processes. The first step of this transition is to choose a payment processor that complies with PCI (Payment Card Industry).
- Choose a reliable digital payment solution that fits your business goals and existing systems.
- Convince your clients, wholesalers, and retailers to use the new payment options.
- Help your employees understand the process of making online transactions through tutorials, live sessions, and guidebooks.
- Regularly update your payment systems to make sure no security issues come forward.
Common Challenges And How TranZact Addresses Them
Although there are several benefits, like the convenience and security of moving to a cashless economy, there are a few challenges as well. From lack of technical knowledge to infrastructure costs, here are the common challenges an Indian manufacturer may face.
- Fear of losing personal data
- Lack of trust in cashless transaction systems
- High cost of implementation
- Expensive infrastructure maintenance
- Cybersecurity risks
- Temporarily affected cashflow
TranZact helps you simplify your daily business transactions with advanced security features like multi-factor authentication, encryption, and fraud detection. It also has an easy-to-use interface that lets you and your client make transactions without much training.
Become a Cashless Manufacturer with TranZact
By implementing reliable digital payment solutions in your business, you not only become a part of a cashless economy but also improve your cash flow management. TranZact’s digital payment solution helps you with increased security, convenience, and client satisfaction. It also helps you save 30% of your time by automating accounts payable and receivables. With TranZact, you can automatically send payment reminders to clients, save time in reconciliation, meet GST compliance, and much more.
Transform your business operations with TranZact today for improved transaction speed, data accuracy, and sustainable digital payments business operations.
FAQs
1. What are digital payments and how do they work?
Digital payment is a money transfer method that is done through banking networks. You can transfer or receive money from your computer or mobile device if you have an internet connection. There are various ways of doing online transactions; these include debit/credit cards, UPI, mobile wallets, payment apps, and online banking.
2. How can TranZact’s digital payment solutions help my business adapt to a cashless economy?
TranZact’s digital payment solution helps your business with several features, such as easy integration with existing systems, higher security, and more. It helps you increase your transaction speed, security, and overall business operations.
3. What steps are involved in implementing digital payments with TranZact?
The steps to implementing digital payments with TranZact involve the following:
- Consider your business’s digital payments requirement.
- Select the right digital payment solution fit for your business.
- Integrate the solution’s payment module with your existing business systems.
- Train your staff and key members about the new payment processes.
4. What are the advantages of a cashless payment system over traditional cash transactions?
The advantages of a cashless payment system over traditional cash transactions include:
- Easy bulk transactions
- Reduced need for carrying cash
- Easy record keeping
- Improved fraud detection
- Increased cash flow
5. How can businesses ensure the security of digital payment transactions?
Manufacturing businesses can make sure their digital transactions are secure by implementing a reliable payment module that has security features like multi-factor authentication, encryption, fraud detection, and regular updates.
6. What are the benefits of digital payments for businesses?
The benefits of digital or electronic payments for businesses are:
- Lower transaction costs
- Secure e-payments
- Faster processing speed
- Better supplier relationships
- Boosted transparency
- Time-savingEasy to use
