Contactless and Digital Payment Methods to Consider Under the New Normal

Thursday, September 24, 2020

Contactless and Digital Payment Methods to Consider Under the New Normal

Almost everyone is especially cautious about handling money lately. As more and more businesses launch and even reopen, financial transactions are inevitable. But with today’s concerns about transmitting COVID, business owners and also customers are looking for cashless and contactless ways to settle payments in a safe and convenient way.

In this webinar, Allegro Beverage Corporation founder and CEO Mr. Leo de Leon talks about the importance of keeping up with the times by carefully considering digital payment alternatives under the new normal.

Allegro Beverage Corporation

According to Mr. De Leon, there are five important steps or considerations for financial transactions in our current situation of dealing with a global pandemic.

Allegro Beverage Corporation

The first thing to do is to assess your business and obtain a clear picture of your Company’s financial situation. Next, engage with employees, customers, and suppliers to find out more about how your business is doing from all sides.

The third consideration is to innovate, wherein you can develop a range of scenarios to find out which one will work the best for your type of business, introduce digital contactless payments, create new products to keep customers interested and keep your business relevant, establish gameplan with realistic goals and timeline, and of course make sure to implement safety protocols.

Another important consideration is to optimize your working capital. Businesses can do this by reducing discretionary spending or by postponing capital expenditures, collect receivables regularly, relay payments to suppliers, reduce inventory if possible, ask for concessions (think of landlords, suppliers, and banks), and outsource work as needed to reduce expenses.

The fifth consideration is to deeply understand your customers’ needs. As long as your business is addressing the public’s needs, you will stay relevant and in demand.

There are several ways to get your business up and running even if you don’t have enough funds. The most common source of capital is banks of financing companies, but according to Mr. De Leon, you can also refinance or sell your assets if needed or consider using your (or a willing family member’s) retirement fund. If money’s tight, you can also consider leasing equipment, taking an equity partner, or borrowing against your life insurance policy or even from a relative or close friend.

If you plan on dealing with banks, here are the most common requirements you need to prepare. Keep in mind that depending on your current financial status, some banks may require more documents.

Financial Statements and Tax Returns
Business Plan
Cash Flow Projections
Lease Agreement
Capital Requirements
Collateral
Corporation Papers
Credit report

Allegro Beverage Corporation

▸ Bank or Finance Company
▸ Refinance or sell your assets
▸ Retirement fund
▸ Equipment Lease
▸ Borrow Against Life Insurance policy
▸ Take an Equity Partner
▸ Borrow from Relative or friend

Allegro Beverage Corporation

▸ Financial Statements and Tax Returns
▸ Business Plan
▸ Cash Flow Projections
▸ Lease Agreement
▸ Capital requirements
▸ Collateral
▸ Corporation Papers
▸ Credit report

Allegro Beverage Corporation

Handling Cashless/Contactless Payments

Finances don’t just refer to the expenses that businesses incur during operation. More importantly, it refers to the cash inflow from sales. For your staff and customers’ safety, it is time to consider adapting a digital payment scheme or contactless payment.

GCash

In this webinar, Mr. Justin Paul Yap from GCash talks about the benefits and features of the ewallet’s “Scan-To-Pay” feature for both businesses (or merchants) and customers

GCash

If you’re not yet familiar with GCash, it is the number one e-wallet service provider in the Philippines with over 23 million users. This BSP-regulated e-money solution offers an individual financial account connected to your mobile number. Through GCash, customers can pay using their e-wallet, which they can top-up from more than 32,000 cash-in points (including major banks, shopping malls, convenience stores, and pawnshops) so they can shop online or pay their bills. GCash is also the e-wallet of choice by over 75,000 merchants, which utilizes their QR payment method. It’s also safe and convenient since all transactions are documented through SMS confirmation messages.

GCash

From a business standpoint, GCash is a great choice not just because it offers a contactless and cashless way of receiving payment. GCash is also low-cost and versatile compared to other ewallets. According to Mr. Yap, GCash’s Merchant Discount Rate (MDR, or transaction charge) is competitively placed at 2%. It also minimizes the need to handle cash for both frontliners and accounting personnel, since they offer services like bank sweeping from the merchant’s GCash account directly to their bank of choice. Using GCash for your business also opens your enterprise to more exposure through possible ads within their 20-million strong base, access to WebPay partners like PayMongo, and DragonPay (to handle electronic payments for your website), and even use of financial services like GCredit, which increases the business’ purchasing power.

GCash

Using GCash’s Scan-To-Pay method means your business will have its own unique QR code, which your customers will use to send their payments – this creates a cashless ecosystem for a smoother, safer, and more secure payment experience. This function features real-time transfer from the customer to the merchant’s GCash wallet, auto-sweeping from the merchant’s GCash wallet to the preferred bank account the next banking day (which means you don’t have to go to the bank to deposit your day’s earnings), and daily Settlement Reports (a collection/summary of transactions from the previous day) so you can stay on top of your business’ performance.

GCash

While using the QR code is an easy and convenient way to receive payments, Mr. Yap reminds current and prospective merchants to always give clear instructions for customers about how to pay and – more importantly – how to send their proof of payment so their orders will be processed.

How to Integrate GCash to Your Business

They use the term “onboarding” to refer to the process of integrating GCash as a method of payment for an enterprise. For onboarding, business owners must prepare the following

documents depending on your type of business

GCash

For inquiries and applications, interested merchants can contact GCash at IWantGCashQR@mynt.xyz or visit www.gcash.com/payment-solutions.

Cashless Salary Disbursements Made Easy

Mr. Yap also shared a new GCash Business product during the webinar: The PowerPay+ or P3. It’s a funds disbursement service that allows companies to pay out salaries, allowances, and commissions to employees’ GCash accounts.

GCash

To be an accredited P3 Partner, the business owner or assigned personnel must undergo antimoney laundering (AML) training in order to properly conduct the KYC (Know Your Customer verification) of employees on behalf of GCash. This process facilitates the opening of bulk accounts for the employees (P3 payees).

GCash

A P3 Payee account has a higher limit of P500,000 (compared to regular GCash account’s monthly limit of P100,000) and comes with a GCash MasterCard ATM card, which the payee can use to withdraw money. The account doesn’t have a minimum maintaining balance, but it does come with certain charges: P20 per ATM withdrawal and P3 per ATM balance inquiry.

GCash

P3 Partners can access the disbursement portal to keep track of disbursements and make sure payments are made in a timely manner. The disbursement fee is P5 per transaction or P20 per P3 Payee per month. The generic card is sold at P135, while co-branded ATM cards are P250 each with a minimum of 5,000 cards.

PowerPlay+ can handle several types of disbursements like Regular disbursements (like payroll or allowances) and Non-Regular (like commissions, incentives, recruitment bonuses, loans, or rewards). Soon, they will also offer Lifestyle Vouchers (like e-gift certificates, STP vouchers, or even prepaid load) and Bundles Solutions (expense management system, timekeeping, and payroll management) via P3.

For more information about PowerPlay+ and disbursements using GCash, visit www.gcashbiz.com.