Entrepreneurs are self-motivated, independent, and competitive. They have a rewarding career with work-life balance, the ability to work from anywhere and build a beneficial network, a flexible schedule, and company control. These business pioneers are important for the economy.
Although many people want to be an entrepreneur, not everyone can be one. That’s because it takes far more work than traditional employment.
Whether you are into affiliate marketing, dropshipping, or your own online business, digital banking is a convenient resource for entrepreneurs that increases their chance for success. But having a digital banking solution is a way for entrepreneurs to unify all of their digital banking apps and get unique financial benefits for their business. Here, we review why you should use a digital banking solution for your financial needs in eCommerce.
Online Banking vs. Digital Banking
Online banking and digital banking may seem to be synonymous with each other, but they’re not.
A brick-and-mortar bank or credit union often offers online banking for quick and easy access to your checking account, bank transfers, and even check deposits. It may allow you to open a checking account online, without ever having to visit the bank. Online banking includes mobile banking, which allows you to use a banking app on your phone instead of being limited to banking on a computer.
Digital banking has some unique and important differences. Because it’s purely digital, it’s great for people who have internet access and no need to visit a brick-and-mortar bank. You only need to go to an approved retail location to deposit cash onto your card or visit an approved ATM to withdraw cash from your checking account.
Digital banking has similar or better features than brick-and-mortar banks. For example, approved ATMs may not charge any fees for withdrawing cash, and approved locations may not charge any fees for depositing cash onto your card. They also typically offer lower fees and higher interest rates. You can read more about digital banking here: https://www.forbes.com/advisor/banking/what-is-digital-banking/
In sum, digital banking is online banking, but online banking is not digital banking. That’s because the former has the same functionalities brick-and-mortar banking has but all through the internet.
Digital Banking Benefits for eCommerce
Since so many people prefer to do their shopping and their banking online, it makes sense that digital banking is increasingly popular. Entrepreneurs are also taking advantage of the benefits that digital banking provides with the three categories of eCommerce:
- Business to Business (B2B)
- Business to Consumer (B2C)
- Consumer to Consumer (C2C)
Digital banking allows for easy and fast payments from your customers to you in the form of online payments. Customers pay first without you having to contact them or collect their payment information, so they enjoy it because of the privacy and security that data encryption brings. PayPal, Stripe, Square, Amazon Pay, Google Pay, and Klarna are just a few examples of online payment gateways.
There are several different payment gateways for affiliate marketing and dropshipping as well. Stripe, 2Checkout, Authorize.net, Skrill, WePay, and Google Checkout are a few examples of gateways entrepreneurs use for dropshipping or eCommerce stores.
Add online payments with a credit or debit card along with ACH and subscriptions or recurrent billing through the business website, and you have a slew of potential sources of income. You also have several online vendors to pay. All require you to have a business checking account to receive the funds and make payments under the company name. So how do you go about accessing and organizing your finances in the most efficient way possible?
What Is an ECommerce Digital Banking Solution?
There are different types of digital banking platforms that act as solutions for various needs. But when it comes to entrepreneurs, they need to be able to easily and quickly see all of their sources of payments for accounting purposes. This is where digital banking solutions come in as a form of financial services specially made for online marketing entrepreneurs and eCommerce.
Having a digital banking solution is part of choosing the best software for your online business. It’s an all-in-one financial platform and banking app that helps you track your entire business, serving as your companion for anything having to do with finances. For eCommerce, it’s your vertical neobank for your internet-first company.
Such a financial platform allows you to link all your bank accounts and payment gateways along with your bills. With it, you can see all of your transactions for deposits and debits. No longer do you have to sign in to each account to track your finances. That means much more time for you to focus on your business.
It’s commonly known as an eCommerce fintech (financial technology). Alternately, it’s also known as eCommerce banking.
Some of the best practices for eCommerce marketing are:
- Experiment with social media ads
- Gather email addresses and keep in contact
- Use tailored offers and messaging with personalization
- Collect feedback through surveys
- Select the best eCommerce software for your goals and needs
- Establish best practices for your website
All of these practices together use eCommerce and marketing solutions that integrate with an entrepreneur’s website and/or financial platforms. However, entrepreneurs who have difficulty with their businesses cannot truly engage in one or more of these practices because they don’t have the proper tools.
Financial responsibility is a major factor in making a business successful, so much so that it can make or break a company. Having an effective eCommerce fintech or banking platform is part of choosing the right eCommerce software for your business.
Features of the Best Digital Banking Solutions for Ecommerce
Having to change your financial solution for your company is frustrating, costly, and time-consuming. But with the best eCommerce financial companion available, you’ll notice some very important features.
Integration of the platform with other platforms as a unifying force makes keeping in tune with your business’s finances much easier. The more types of integration it has, the better. Advertising and payment gateway integration is a big example.
Currency matching is a feature that allows you to do business across multiple countries or even around the world. With it, there’s no need for currency exchange.
Being able to have multiple and virtual cards when necessary gives you greater financial control when making online payments to several vendors every month. You can improve fraud protection and safely permit spending ability to workers, whether contractors or employees.
Rewards such as cashback encourage you to use the platform for company purchases. Plus, they’re generally non-taxable.
Credit is also important for investment purposes as well as building credit under your company. It is not only useful for expanding your business but expanding your B2B network.
Some other important features are:
- Record-keeping and accounting
- Virtual accounts
- ACH payments
- Instant ACH
- Financial automation
- P2P money transfers
- Merchant eCommerce
- Credit card processing
- International money transfers
- Built-in KYC/KYB (Know Your Customer/Know Your Business)
- Digital wallets
- Push to card payments
- Blockchain payment features
How Digital Banking Solutions Empower Entrepreneurs
As you can see, digital banking solutions help you track your whole business on one single platform. In turn, you have the tools you need to make better financial decisions. And as you become more successful, you can scale up your business appropriately. You’ll be able to see exactly how far eCommerce can take you once you have the best platforms at your disposal.