In the merchant services industry, there is one type of payment technology that every single business can benefit from: mobile payments.
In October 2019, eMarketer predicted that the global payment market would hit a major milestone that year with 1.06 billion people expected to make a proximity mobile payment (also known as NFC payment). Due to COVID-19 and its increasing demand for mobile payments, it is safe to say that number will now exceed its prediction.
According to Mobile Payments Today, the COVID-19 pandemic is driving U.S. consumers toward mobile banking and digital payments, per a study by payments firm FIS.
The study revealed that 45% of banked respondents have changed how they interact with financial institutions, with 46% of Baby Boomers, 39% of Gen Xers, and 36% of millennials now using mobile or online banking, according to a press release.
In addition, Mobile Payments Today noted that the study showed:
As a business owner, following consumer buying trends and keeping up with consumer demand is crucial.
Accepting mobile credit card payments (debit card and pre-paid card payments also apply) is safe and easy to do. Read on to learn more about what exactly mobile payments are, the types of businesses that use them, and the safety measures to take when accepting and delivering mobile payments.
Mobile payments are products and services that are paid for by customers, typically in person with a portable device such as a smartphone, tablet, or wearable technology. Businesses accept these payments with a tablet or smartphone.
Mobile payment solutions for small business all the way up through enterprise level business have caught on. Across our merchant base particularly in New York and New Jersey, retail stores and restaurants remain the biggest adopters of mobile credit card payments. But, mobile payments can be accepted in any industry such as:
Aside from the statistics that show consumers want to pay for purchases with a mobile device, accepting mobile payments has four main benefits.
While point of sale systems (POS systems) can look great on a countertop, they do not always make financial sense, especially not for small businesses. Mobile payment solutions are cheaper than POS systems and most payment terminal machines. With a payments solution like MX Merchant, equipment is optional, making your equipment cost $0. Plus, accepting payments with MX is easy and the software attached to it comes with all the bells and whistles to help make your business run smoothly:
Taking and making payments from anywhere Wi-Fi is enabled is a big selling point for merchants and consumers. As a merchant, there is no more getting stuck behind the cash register when you have a mobile payments solution.
Walk around your store, engaging your customers with your smartphone or tablet and when they are ready to finalize their purchase, you will be able to bring payments to them. Apple has been doing this for years. When I made my first purchase with them on a mobile payments system, I thought it was one of the most innovative things I had ever seen. Then when they asked me if I wanted my receipt emailed or printed, I was even more impressed – I would not have to worry about losing a paper receipt. Their mobile payments experience personalized my checkout process and you can do the same for your customers.
During the pandemic, the same concept applies but now you’ll deliver payments via curbside or drive through pick up.
While any business can benefit from increasing revenues by accepting mobile payments (even if they have a storefront but prefer to be mobile), this is a great opportunity for non-profits and small businesses.
For example, the Middletown, NJ PBA (located in Monmouth County) is able to accept payments at their fundraisers because of our mobile payment solutions. Attendees only bring a certain amount of cash and when they ask if cards are accepted, event organizers can say yes. As a result, some attendees end up making higher donations than they would have been able to being restricted to paying by cash only.
Another example is the small business owner who sells their products at local craft markets and festivals. If your customers are anything like me, they only bring a certain amount of cash to these types of events, trying to stay within a budget or not wanting to worry about losing cash.
Due to the nature of these events, small businesses owners get to have personable conversations with prospects which I have seen result in people making purchases they had not planned on making, and as a result spend more money than they intended. How could consumers not? They are out at these fun events, the sun is shining, the mood is right, and the business owners are so charismatic with their oftentimes homemade passion products … cue the impulse buying. A study by creditcards.com cited that among all Americans, 84% have said they shopped impulsively.
I want to buy more … your customers want to buy more … but when you accept cash only, we are restricted to how much we can spend. Mobile payment solutions for small business increase revenue for:
A Wall Street Journal report found that on average, it takes 13 seconds to pay with a chip card while swiping or using a mobile wallet takes only six seconds. Those few seconds can make all the difference when you are short on staff or have a long line.
One of the biggest hesitations merchants typically have for not accepting mobile payments is a matter of safety. In some ways, mobile payments are actually safer than traditional payments because customers’ financial information is not transferred during transactions. Instead, as noted by The Balance, an encrypted version of customers’ credit cards are used to authorize payments. To help make mobile payments even safer, following these best practices is encouraged.
Oftentimes people think NFC payments and mobile payments are one in the same which is not true. NFC payments are not always mobile but mobile payments can be NFC payments. The best way to understand this concept is with payment technology examples.
Interested in accepting mobile payments for your business or learning more? Contact us. We are a payment technology company and payment processing company that is located about 60 miles outside of Manhattan, New York and 80 miles outside of Philadelphia, Pennsylvania.
[Further Reading: Everything You Need to Know About Accepting NFC Payments]