Over the years, we have seen how smartphones and their applications have gained momentum. As smartphones are becoming an indispensable part of consumers’ lifestyles, mobile payment systems are bound to replace cards and cash. No wonder it is widely believed that in the near future we may no longer carry cash or cards in our pockets.
Also referred to as mobile wallet, digital wallet or e-wallet, mobile payment is any transaction made, initiated or received with smartphones in return for goods or services. According to Business Insider, 75% of all financial transactions will be cashless by 2021. Therefore it is in the best interest of all businesses, irrespective of size and work, to embrace mobile payment technology. Find the five main benefits of switching to mobile payment systems.
Mobile payment systems are more convenient than any other options
Mobile payment technology is convenient for both the customer and the business. With a tap or click at the counter, customers can make payments easily without having to wait for a long time. According to research, a well-designed mobile payment solution could provide the maximum convenience, avoiding the need to give change or fish around for your purse or card.
Furthermore, customers can have access to multiple accounts without carrying a physical wallet. A mobile device eliminates the inconvenience of carrying several plastic cards by enabling consumers to link mobile payments to those card accounts.
Mobile payment provides a seamless checkout process
Mobile payment technology speeds up the entire checkout process for customers, especially during peak hours. According to some estimates, the mobile payment system is 15 seconds to 30 seconds faster than swiping a traditional card, signing the receipt or entering a PIN. Businesses and companies can take advantage of this to enhance their value and service during holidays when everyone is shopping and when there are long queues in every store.
For example, Starbucks who has already embraced mobile payment technology argues that mobile payment accounted for 27% of all their U.S. transactions in 2016. This small difference is what makes Starbucks one of the most successful businesses worldwide today.
Mobile payments are safe and secure
However, it is important to point out that convenience and simplicity of operations should never be at the expense of security. Customers and businesses will want to make sure that the mobile payment systems are safe and secure. Fortunately, research has shown that mobile payments are more secure than traditional forms of payment. They have the potential to reduce fraudulent POS transactions. This is possible thanks to dynamic card authentication of the transaction at the point of sale. Card authentication checks whether a credit or debit card is legitimate. Tokenization is also used in mobile payment technology. It is defined as the process of replacing sensitive card information and billing information with a unique identifier that cannot be altered. Data of this type cannot be used to make fraudulent transactions.
Mobile payment technology increases profits
A survey carried out by Ingenico ePayments, Oxford Economics and Charney Research concluded that the most profitable and successful companies are those which accept mobile payments. Moreover, a 2015 Hospitality Technology study revealed that new payment options and mobile point of sale (mPOS) were the key drivers of profits in restaurants. In a world where individuals are engrossed in their own busy lifestyles, convenience is the greatest need ever. If you want to keep your restaurants running, you have to make sure that you adopt the latest mobile technologies and upgrade your POS payment systems. In the near future, it is expected that more and more diners will want to use their smartphones for paying in restaurants. In this way, they can pay for their meals on their own time, rather than waiting for the bill.
Some mobile wallets are compatible with loyalty programs. This helps businesses increase their revenue. Loyalty programs and cards are great ways to attract customers and boost profitability. According to a study, creating a virtual card is cheaper and simpler. It is also one of the perfect ways to maintain a competitive advantage in the market.
Mobile payments drive customer insights
Mobile payments are not only a means for businesses to stay up-to-date with the latest trends and technologies, but they also help small businesses gain customer insights. Very often, businesses have difficulties in tracking customer data. With mobile payment systems, merchants have the opportunity to gain greater insight into individual customers, thus providing them with personalized and enhanced service. Information gathered from mobile payment technologies let businesses and merchants know about customers and their buying behaviors.
Article published in Mobile payment
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