Should Your Law Firm Accept Alternative Payments Like Digital Wallets?

One of the profitability strategies for law firms that we didn’t include on our list was accepting alternative payments.

Why?

It’s a topic that warrants quite a bit of information to fully understand. Forbes found that 53% of  Americans use digital wallets, an alternative payment method, more than they do traditional payment methods. Consumer habits are changing, and it’s vital that your firm changes with the times, too.

And while we mention law firms in this guide, you can swap in any business type because everyone should consider these alternative payments to drive more revenue.

What are Digital Wallets?

A digital wallet is a wallet that exists digitally. For example, if you’ve used your smartphone to make a payment in a store, you’ve used a digital wallet. These transactions occur via Bluetooth or magnetic signals and offer higher security than using a credit card directly.

The Pros and Cons of Digital Wallets

Every payment method has its own advantages and disadvantages for your firm and clients. A few of the most common pros and cons are:

Pros

• Payment is made without cards or cash, so they’re quick and easy from the user’s perspective.
• Tokenization and encryption lower the risk of payment information being revealed to a third party.
• Clients worldwide can use e-wallets as an alternative payment method, making it easier for you to grow your firm.

Cons

• Digital wallets have grown in popularity, but they’re used most often by people earning over $100,000, meaning your target demographic may not have adopted them yet.

You can offer digital wallets alongside your traditional payment methods, but there is a key to doing so. What is that? Seamless integration.

How to Integrate Digital Wallets Into Your Firm’s Payment Structure

If you follow the guidelines below, you’ll have an easier time integrating digital wallets into your business.

First, Understand Your Clients’ Needs

Clients may or may not prefer digital wallets or alternative payments. How can you know for sure? Send out a survey to your clients asking them if they:

• Want the option to make payments with a digital wallet?
• Are they comfortable making payments with digital wallets?

You can use client concerns to your advantage and opt to address them before they become a friction point. 

Law firms that have the best success with digital wallets make them as user-friendly and easy to use as possible. Integrating the right solution for your digital wallet is integral to meeting client needs.

Next, Find a Solution That Supports Digital Wallets

If you find that clients want to use digital wallets for payments, the next step is to find a payment processor that supports them. 

When comparing solutions, consider:

• Pricing 
• Customer support
• Reliability
• Security

Some solutions, like Clio Payments, are specially designed for law firms. Weigh your options, and choose the one that fits your budget and needs.

Educate Your Clients on Your New Payment Option

Once you have everything set up to start accepting payments from digital wallets, start educating clients about this new option. 

Make sure that clients understand:

• How to use this payment option
• The benefits of digital wallets

Additionally, you’ll want to address any security concerns clients may have. Clear and concise communication will help maximize the adoption of digital wallet payments.

Don’t Overlook Security and Compliance

Digital wallets offer a convenient payment option that may appeal to your clients, but it’s important not to overlook security and compliance concerns. Apart from potential problems with trust accounting, you must consider the following:

• Compliance with Payment Card Industry Data Security Standards (PCI DSS). These security standards ensure all businesses that accept, process, store or transmit credit card information maintain a secure environment. Before adopting a payment provider that has digital wallet functionality, verify that they are compliant with PCI DSS.
• Educate Staff and Clients About Phishing Scams. Phishing scams attempt to obtain confidential data, like usernames, passwords or financial information, by impersonating a trustworthy person or entity (friend, co-worker or well-known business). Make sure that your staff and clients understand how to identify phishing scams and what to do when they encounter one. 

Accepting payments from digital wallets can benefit your firm, but it shouldn’t come at the cost of security and compliance.

Summary

As solutions like Apple Pay, Google Pay, and Cash App become more popular, your clients may want to use them to make payments. Before you commit to offering this option, make sure that you understand the benefits and drawbacks of digital wallets, how to integrate them into your firm, and potential security concerns.

To learn more about our controller services or how we can help you with your accounting needs, schedule a consultation now!