With an increase in the use of mobile payments in the United States, new mobile payment apps are popping up. But many developers are not thinking about integration with all the point of sales (POS) systems available, leaving some merchants unable to accept certain mobile payments.
Eighty percent of payments are cashless
With mobile payment options from Apple, Google, Samsung, and MasterCard at the forefront of mobile payments, around 80 percent of all American transactions are done through cashless payments. According to a study by Deloitte, Americans check their cell phones around 8 billion times a day, overall. Small wonder the biggest thing in financial technology right now is mobile payments. And the industry projection predicts mobile payments will reach 503 billion dollars by the year 2020. Mobile payment options are shaping the future of consumer spending in the food industry, as well as transforming the way catering enterprises conduct their business with each other. And while there may still be many hurdles to get over in the mobile payments industry, the key to resolving this is compatibility.
Many apps are not compatible with existing systems
The mobile payment industry is still growing, and its entry into the restaurant market has proven difficult, with many barriers getting in the way of its use. While many restaurants and retailers are already using POS terminals for card payments, the majority are not being integrated into new mobile payment apps. Developers of the apps are not taking into account the compatibility of their mobile payment system with the normal POS systems. Because many are old platforms using outdated technology, making additions to these existing systems can be costly for the business owners who do not want to add the extra hardware.
Integration is the key to mobile payment success
The ability to successfully integrate with the existing POS systems helps to break down the barrier to entry into the industry and helps the restaurant owners with staff efficiency. Anyone developing a new mobile payment app must identify the specific system they want to work with, and then concentrate on the compatibility issues during the design stages. If an app is hard to understand, or business owners are unable to make it easily work within their system, they will discard it quickly. By ensuring the apps are compatible with any system and easy to integrate – even with some of the most ancient systems – there is a better chance of success for the app within the industry.
Mobile payment systems are an advantage for retailers
Some of the many advancements helping the restaurant industry in recent years have included POS tablets, digital receipts, inventory management, and cloud-based reporting, to name but a few. In an industry that includes high-demand consumer environments, the incentive is in offering great service with greater convenience. The ability to easily implement a mobile payment system into existing technology is one of the biggest incentives to success.
A mobile payment system that is easily integrated into their existing POS system makes it easier for businesses to adopt its use. A well-integrated system can help the retailer with their normal process – closing the bill, customer authorization, payment processing – making it faster and more efficient. By increasing the efficiency of paying the bill, they can increase the volume of sales allowing management and staff to focus more on providing excellent customer service.
Starbucks take the lead in mobile payments
Even Starbucks have taken advantage of the increasing popularity of mobile payments, with around 16 percent of their annual transactions being cashless. Industry figures have shown that, out of the 1.6 billion dollars spent using smartphones, 90 percent was in Starbucks. If Starbucks can have that much of an impact on their revenue by using mobile payment systems, the impact on smaller businesses can be just as significant.
Quality and service are essential for success
At the end of the day, quality products and excellent customer service are essential parts of any successful business. Positive experiences can result in repeat custom, personal recommendations, and increased sales. A bad experience, however, will often discourage the consumer from returning, and the impact of negative feedback to their friends can have a massive impact on future sales revenue. Research has shown that the cost of gaining new customers is five times as much as that of keeping existing customers. Yet many firms focus on new customer attraction more than they do on retention. Using mobile payment apps and systems can help with retention of loyal customers through engaging content and building relationships. By sharing offers and other benefits through the mobile payment app at the time of payment businesses can encourage customers to return and share their great experiences with more potential customers.
Mobile payments are the future of consumer spending
POS systems that are compatible with mobile payment apps are seeing a strong growth within industries, especially with restaurants and bars, as the business owners recognize the advantages of cashless payments. Analysts are predicting American mobile transactions reaching 142 billion dollars over the next few years, as more people rely on their smartphone for their daily purchases. Smartphone use has increased with more people using mobile wallets. For the mobile app developers to stay competitive in their market, they must stay focused on the needs of today’s consumer, and be more forward-thinking and innovative than ever.
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