Home > Features > Cash for Online Purchases • Bookmark   • Newsletters   • Register Search Options

FEATURE

Cash for Online Purchases

Cash for Online Purchases

April 18, 2012
Text size: 
View in Digital Mag
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
  39.66%
Yes, but in a few years
  36.87%
No
  23.46%
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.

" I think that a consumer who is unbanked or without a credit card would be more apt to get a debit card that they could use for purchasing anywhere. "

I had the privilege of attending the NACHA Electronic Check Council meeting in Phoenix recently. The two-day meeting provided the attendees with insight into the NACHA activities, debit card models and Generation Y payment habits.

Of particular interest was how Generation Y behaves related to banking and payments. A panel of five Generation Y people was asked a series of questions and their responses are documented below. The moderator also provided commentary that related to a bigger study that had been published on the subject, but overall the findings were similar.

Generation Y behaviors:

  • They had no more than $20 cash in their wallet, many having $0 cash on hand;
  • They had more than 1 banking relationship and carried their debit cards for all the relationships;
  • They used their debit card as their primary payment instrument;
  • When selling items, PayPal was their payment vehicle of choice;
  • Although they all had checking accounts, most didn’t write checks and the others wrote checks to parents or for car loan payments; and,
  • Would like to see their mobile phone as their payment instrument as it provides securities and convenience that a wallet does not.

Given the above information, I am amazed at the recent activity related to cash payment services for online commerce.

In case you are wondering, no, the technology companies and banks have not found a way for you to actually use cash at your computer online, but they have developed a way to use cash as a payment method in an offline way.

The customer is at the ecommerce website, they determine what they want to purchase and they go to make their purchase. One of the options is pay by cash. This option presents the consumer with an invoice that they print out. They take this invoice to a brick and mortar location that services this payment type.

The consumer presents the invoice and then pays by cash to the agent. At this point the money is in the hands of the agent, the customer has made the effort to pay and the merchant is waiting for the payment. The system then records this transaction as paid and the merchant will then receive payment (less the service fees) for the purchase. The merchant now provides online access or ships product to the consumer for the purchase.

I think that a consumer who is unbanked or without a credit card would be more apt to get a debit card that they could use for purchasing anywhere. Further, it is my belief that this readership has a market of impulse buyers.

This method takes out all of the impulse from the buying process. Even if the consumers want to make the purchase, they have to have the invoice, know where to go, get there and have the cash to make the payment.

This is certainly a system that you would want to ensure has 100 percent uptime as just imagine if the consumer gets there and they cant make the payment or the invoice isn’t recognized, definitely not a consumer experience you would want to provide. Another consideration is, how do you do recurring billing? This seems to only be good for a onetime payment.

On the other hand, having more payment methods is better. It is a common belief that if even one consumer wants to pay that way then it is worthwhile, especially if it really doesn’t cost you much to offer it. I imagine that if someone is motivated enough to go through those steps to pay you, they will be a very good customer.

Further, this is a good funds model with no chargebacks. As long as your partner is reliable, you will get paid. The final benefit is that this is definitely an anonymous way for your consumers to pay.

So as payment methods evolve and technology advances, it seems the latest addition to online payment methods are in person payments with cash!

Welcome to the 21st century.


BUSINESS ANALYSIS

Breaking the Fourth Wall: VR Production Tactics, Techniques

The tech world has long seen the cyclic debut of fabulous (and fabulously expensive) products, which initially wowed pundits and early adopters, but were left antiquated with the next round of releases. Virtual... More »

Retailers, Distributors Report Growth in Male Sex Toys Market

Adult retail has been undergoing a transformation in recent years. The adult stores of the 1990s and 2000s focused heavily on porn video sales and catered to a predominantly male clientele, but these days,... More »

VR Hardware: The Foundation of Immersive Technology

From cameras to headsets to controllers, software and more, virtual reality technology is more than the VR content experience itself — it also surrounds the tools that are needed to create and consume... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

XBIZ.net Paysite Meetup

Jul 13 - Jul 13
Barcelona, Spain

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport

QWEBEC Expo

Aug 03 - Aug 06
Montreal, Quebec
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!