It was predicted that mobile payments would be outrunning other modes of payment. It is indeed witnessing a consistent boom: by the end of 2016, there were more than four hundred and fifty million mobile payment users around the world. This represented transactions amounting to 60 billion US dollars (USD). It is estimated that within the next three years, 90 percent of all mobile users will be making mobile payments. As such, merchants lagging behind with this new trend should catch up to avoid massive losses.
Are mobile payments better than cash
Digital payments are increasingly replacing cash payments for various reasons. First of all, mobile payment is very convenient. From the comfort of the home or in the busy atmosphere of an office it can take just a few minutes to make a digital payment, check your e-statement and supervise transactions. For many people, phones are already replacing their wallets. It also seems safer than walking around with a bulging wallet full of cash. Through digital payment, it is easier to track one’s spending than when using cash. At the end of the month, there will certainly be no surprises as to where your money went.
Mobile payment can be a huge benefit for stores
It is an undeniable fact that mobile payment offers numerous advantages to both retailers and customers such as faster checkouts and reward programs that can allow merchants to examine the loyalty and purchasing trend of consumers. A wide array of options exists for stores in terms of mobile payment. Certain stores, like Kohl’s and Wal-Mart, have their own payment feature with their own mobile application. Some stores still prefer to use the well-established payment platforms, like Apple Pay and PayPal. And with the advent of in-store mobile payment option, including the line-busting mobile payment terminals around the store, the customer no longer has to wait in the queue. This also relates well for the retailer , who is able to see a larger volume of purchases without increasing the number of sales staff and checkouts.
Benefits for both consumer and retailer are available
Another major benefit of using mobile payments is the advertising ability of the retailer. While making a payment, the system can leave the latest deals or the best discounts on the customer’s device, letting them know what is available that they may like. This can all be based on an individual customer’s normal buying habits and can be fully automated. Moreover, mobile payments also aid the retailer in customer retention. The merchant is able to offer incentives and extra discounts, coupons, or loyalty points to their regular customers, which can benefit both customer and merchant.
Undoubtedly, the best added-value option with mobile payments is the ability to interact with the customer in a survey, before he has even left the counter. An option can be added to ask the customer a simple question about the sales staff, or the customer experience, tailored to the individual merchant. With just one push of a button – rating the merchant from 0-9 on the keypad – the customer can leave anonymous feedback that can help retailers to improve the customer experience. This is not compulsory, even if it is added. If the customer does not want to leave feedback, they can simply press the skip button, and move on with their payment.
Mobile payment development is in constant evolution
Mobile payment is not a stagnant service. Due to the numerous benefits related to this mode of payment, it is in constant growth with more and more consumers and retailers adopting it. Experts predict contactless payment – which is part of mobile payments – will be expanding. It requires tapping a card or using a digital wallet for payment.
On a parallel note, technology related to mobile payment is also evolving. For example, Google has come up with Bluetooth and Wi-Fi systems that do not require the customer to even remove his smartphone from his pocket or bag. Other companies are investing in technologies that will allow consumers to use their clothing or accessories to effect payment. Imagine using the button of your jacket to pay for your dinner, or waving your bracelet over a scanner when buying jewelry. The possibilities with mobile payments are endless.
The future of mobile payments is certain
It is certain that mobile payments will be more and more popular in the near future. As such, retailers should ensure that they will be able to cater for their customers, who will no doubt look for one mode of mobile payment or another for their convenience. Retailers need to adopt systems that will not only guarantee convenience but ensure security as well. However, they are advised to proceed cautiously as there are still no well-defined parameters or a regulatory framework. Proactive measures should be taken to avoid failures and fill loopholes regarding the options they wish to offer.
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- The importance of using a Digital Wallet
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