Hobby, hustle, or business?
I recently came across an article about peer-to-peer or (P2P) payment apps, just around the time the government announced that platforms like PayPal, Venmo, and Zelle must report transactions of $600 and above to the IRS. This article was particularly relevant because I’d just finished a coaching session with a new business owner that focused on the importance of establishing credibility and legitimizing a business.
During our conversation, we discussed how, that if one is serious about growing a business beyond a hobby or side hustle, it’s crucial to legitimize it by obtaining the appropriate credentials, licenses, and registrations- especially in regulated industries. The business owner shared a recent issue with a customer. She’d informed the customer beforehand that multiple payment methods were available, including non-P2P options. However, after completing the service, she only offered a P2P payment method, leading to a conflict with the customer. The customer had previously communicated a preference for a different payment method and was uncomfortable with being presented with only the P2P option. The business owner explained that a technical issue required the change in the payment method, but this did not alleviate the customer’s concerns. The client eventually agreed to the P2P payment, but the situation left them with a negative impression.
Offering a variety of payment methods is key to attracting and retaining customers. Miscommunication or misleading clients about your payment options might win a customer initially, but it won’t keep them.
In today’s world, P2P payment apps are commonly used for both personal and business transactions, including in the gig economy. However, one of these P2P systems recently made headlines due to data breaches affecting millions, resulting in a highly publicized class action lawsuit. This raises important considerations for businesses- namely, is it wise to rely on P2P systems for large transactions?
In the scenario presented, the business owner made a promise upfront but had not taken the necessary steps to meet the customer’s request. There’s much more that could be said about this situation, but I’ll leave you with this question… Are you comfortable sending large sums of money—$1,000 or more—using P2P systems? I’d love to hear your thoughts in the comments!"
This is your favorite HR lady, Shon, signing off until we meet again.
Take care and be well!
Check out the Companion Video to this Blog Post below! (Insights From A Business Coach)
Companion Video to Blog Post:
"Hobby, hustle, or business? Insights from a Business Coach"
Dive into the world of peer-to-peer (P2P) payment apps and uncover the latest government regulation requiring transaction reporting over $600. Learn how this impacts everyday users and businesses, especially in regulated industries. Understand the importance of establishing business credibility, obtaining necessary licenses, and offering diverse payment options to ensure customer satisfaction. We'll also discuss the risks associated with large transactions and recent data breaches leading to legal actions. Join Shon in this insightful video and share your thoughts and experiences in the comments.
#P2Ppayments #BusinessCredibility #GovernmentRegulations #CustomerSatisfaction #DataBreach #SecureTransactions
OUTLINE:
00:00:00 Introduction
00:00:20 The Importance of Legitimizing Your Business
00:00:53 Customer Payment Preferences
00:02:10 The Risks of Relying on P2P Systems
00:03:03 A Final Thought
00:03:24 Closing Remarks
