Mobile payment is quickly becoming the next big thing. With the omnipresence of smartphones, it is crucial for businesses to adapt to this new trend and adopt mobile payment. Why? Not only because it is ‘cooler’, but more to facilitate customer’s transactions with an efficient and rapid payment method that will benefit both parties.
A method that can help save a lot of money
Indeed, mobile payment is an efficient and practical solution for customers to rapidly complete payment without having to stand in a long line. It could prevent people from waiting for a long time and also help businesses get paid instantly. Imagine the amount of time and money businesses can save by simply adding a credit card processing app on their system that is directly linked to customers’ mobile phones! Moreover, mobile payment also eliminates the need for billing and simplifies managing accounts, particularly for small businesses.
Mobile payment doesn’t require major investment
Accepting mobile payment is easy and simple. All that businesses need is a mobile phone and a card reader. As a matter of fact, there are various providers available to facilitate mobile transactions, including Apple Pay, Samsung Pay, Google Wallet and many more flourishing to facilitate online mobile payment. Businesses can even provide dongle for people to plug in with their mobile to process payment. Mobile payments eliminate the need for businesses to purchase expensive point of sale equipment by simply converting their mobile device by using a card reader or app.
A payment method that provides better protection
Retailers can protect their businesses with mobile payments as many of these new applications provide better security. For instance, Apple Pay employs a Secure Element (SE) to protect sensitive information, while Android Pay relies on Host Card Emulation (HCE). As for NFC (Near Field Communication), they have a secure channel that protects sensitive information like customers’ credit card numbers. Users are strictly recommended to protect these data by adding a password in case their phone gets stolen or is lost.
If it is convenient for the customer, it will also be for the business
One of most important aspects of mobile payment is that it is easier for customers to pay for things. Contactless payments can have a positive effect on sales as customers are not frustrated with carrying credit cards, cash or check books. Accepting major credit cards via mobile helps companies offer an instant, cashless payment to customers; thereby increasing their own customer base and enhancing sales. A fast payment method can speed up the entire checkout process for customers, allowing them to complete any type of transactions within seconds. Indeed, an efficient and practical payment system can enhance the user experience and encourage them to return for more.
It can help understand customer behavior in the long run
Mostly for small businesses, mobile payments can help them keep track of customer’s expenditure and thus maintain inventories of products that are out of stock. Many mobile payment apps can keep track of user (customer) behavior by analyzing their buying habits. Small and medium businesses can have a solid feedback of what customers prefer to buy. With detailed logs of consumer purchases available, retailers can predict, to some extent, the trends that are dominating sales of their specific products. Hence, a better customer service logically means a better business environment.
Businesses can easily set-up and manage loyalty programs
Loyalty and incentive programs are maybe one of the biggest pros of mobile payment systems. Imagine not having to carry around loyalty cards from different shops to benefit from store credits! With a modern payment app, all your buying history is safely stored in the smartphones of customers for verification. No need to manually keep track of purchases, noting reward points in a notebook or verifying old coupons stuffed for days in customers’ wallets if you want to give them discounts. With mobile payment, everything is effectively, rapidly and safely done with a simple touch on a smartphone screen.
Mobile payment means less credit card processing fees
Small businesses already have a lot on their plates when it comes to the growth of their business. To simply get approved for a merchant account, they face numerous battles with financial institutions. And then, when they get the approval, there are monthly credit card processing fees and other bills associated with it. A mobile payment service includes fewer charges and is very easy to install. There are a lot of cost-effective options for small businesses to choose from for a suitable mobile payment platform. Such apps help small companies survive by increasing their savings and reducing unnecessary fees.
It is a solution to improve cash flow
Traditional payment methods like cash, credit cards and checks translate into a lot of paperwork and tracking down. The logistics involved is often time-consuming and not productive, especially for small businesses, which have to personally go to banks for cash deposit every week. Concerning security also, keeping large amounts of cash around is not a good idea as shop owners expose themselves to risks of theft by larceny. With a mobile payment platform, all these issues are de facto eliminated.
Mobile payment can reduce checkout time
Mobile payments are fast and can logically speed up the whole checkout process for the benefit of both customers and businesses. Compared to traditional payment methods, it is definitely faster and simpler as it takes only a few minutes. Concerning customer experience, this accelerated payment method can have beneficial effects of building a better and stronger relationship with them. Businesses, mostly retailer, can serve customers in a more effective and efficient manner, especially during holiday seasons, when everybody is out shopping.
Customers are ready to accept and adopt mobile payments
Since the majority of people in developed countries own smartphones, it is safe to say that they are ready to accept and adopt mobile payment. Be it clothes, groceries or utility bills, people are more and more willing to embrace a payment method that avoid them the hassle of waiting for hours to complete any type of monetary transaction. As a matter of fact, one of the best ways to increase sales is improving customer service. For small businesses, customer satisfaction and personalized service is crucial to their survival and what better way to do that than accepting mobile payment.
Businesses should modernize with a new payment method
Indeed, organizations, both big and small, should think of modernizing the way they do business. So, whether you run a busy cafe or a brick-and-mortar retailer, mobile payment systems gives you an edge on competitors. It can improve the image of your business and set an example for others to follow. Even mobile workers like electricians and other tradespeople can benefit from this easy payment structure. They can be paid instantly even if their customers don’t have enough cash around in the house.
Mobile payment can decrease theft risks
For both businesses and customers, keeping or carrying large amounts of cash can be dangerous. Theft possibilities are greatly reduced when there is no cash in the counter to rob. Customers can feel safer knowing their money is secured in the bank and that they don’t have to keep money or credit cards in their pockets or wallets. For retailers, mobile payment makes their job easier as they don’t need to invest in security personal to keep them safe, although a fully functional set of security cameras are essential.
Payment can be done anywhere and at anytime
With mobile payment, transactions are possible anywhere and at any time. As technology progresses, it is possible that an advanced payment system allows for a more efficient way of transacting. In the near future, be it the weekend or the middle of the night, payment could be made in total security and impunity wherever you are.
Small businesses should choose which platforms offer the best services
There are many mobile payment platforms that offer different kind of services at varying prices. Businesses should keep in mind their budget and needs whenever they are adopting mobile payment. Some platforms offer many advantages and honestly advise small businesses to increase their savings. They should ensure to study each one of their terms and conditions in detail and understand the fine print before making a final decision to sign up for one of them.
Mobile payment is going to change our world
Mobile payment is gradually taking a meaningful part of the mobile commerce landscape. With the increased use of internet on smartphones, online payment will continue on rising. In the years to come, we will enter into a cashless society. That is, the more people rely on technology, the more it will become part of our lives. And inevitably, shopping will not be spared as more and more applications will be available to facilitate mobile payments. Providers of these payment platforms keep consumer’s needs and expectations in mind when designing these apps. With the growing demands of users, they face some serious challenges to make it easier for both customers and businesses to use their system.
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