In which of the following ways can digital payment systems lower costs for businesses?

Digital payment systems can lower costs for businesses primarily by reducing cash handling expenses. When businesses implement digital payment methods, such as credit or debit cards, mobile payments, or online payment platforms, they minimize the need for physical cash transactions. This reduction leads to decreased costs associated with managing cash, which can include the expenses of counting cash, securing it, and depositing it at banks. Additionally, handling cash often involves added security measures and time spent on processing that can be eliminated with digital transactions.

The move towards digital payments allows businesses to streamline their operations, reduce the risk of theft, and enhance efficiency, leading to overall cost savings. As digital transactions are automated, this not only saves time but also lessens the workforce required to manage cash transactions, thereby further cutting down on costs. In contrast, increasing transaction fees, requiring more staff for transactions, or eliminating online payments would typically result in increased expenses rather than reductions.