Mobile Payment is a payment method that allows customers to make purchases in physical and online stores using their smartphones, tablets, or smartwatches via mobile wallets or just a web browser. And in addition, it allows stores to accept payment by using mobile phones instead of point-of-sale (POS) terminals and cash registers.
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Mobile Payment is used in several types of transactions. Aside from the PoS purchases, it can be used for paying bills, sending and receiving money via an app or web browser, and paying employees using mobile wallets.
Mobile Payment allows customers to just use their smartphone instead of carrying cash in wallets, credit cards, and using checks. And to figure whether all of the aforementioned is worth any attention for entrepreneurs we should take a look at the market reality. 51% of internet users purchase products online with their smartphones, and two thirds (66%) use shopping apps according to Dateportal, 2020. 79% of smartphone users purchased something with it within the last 6 months.
Nowadays all modern smartphones have NPC technology and considering the wide-spread use of smartphones for purchasing the fact of Mobile payment implemented in any type of business can be crucial for any type of business.
If you consider implementing this type of payment for your business you should know that the only disadvantage here is fees and commissions, but all the advantages more than make up for it.
Major benefits of mobile payments
To start with the benefits, we should mention the crucial perk for every new technology appearing on the market. If it is approved by customers it means the business gets more sales and conversion. According to surveys, 80% of interviewed said that mobile payment is convenient and easy to use.
As for the tangible benefits we have the following:
- Greater efficiency. It follows directly from the stats we’ve shown above. Mobile Payments just allows you to get paid instantly- no paperwork, no tracking down payments, no waiting for the check to be delivered. In addition to that, on the customer’s side, the whole process of payment available on your a with instant notifications allow users to manage their budget more effectively.
- Customer loyalty programs. It’s quite a common practice to offer rewards for Mobile Payments like discounts and points. And that makes your clients more loyal and encourages them to buy more and more from you.
- Higher security. Moving everything to cyberspace carries with it many risks. The main concern is compromising your credit card data when using PoS terminals. Some people even feel uncomfortable because the store’s staff see the credit card number when you’re paying for something. While using Mobile Payment an app uses tokenization which works like EMV chips- the credit card number is encrypted and no one has access to it. And the app uses codes instead of card numbers.
- More data from your clients. Your marketing team will be endlessly thankful for it, as knowing your clients’ demographics and other information is extremely important for any business. That’s how you’ll identify a ton of patterns, how often they spend money, and what they buy. And if you apply the bonus programs described above, the personalized offers for clients- that always means money.
- Cost of hardware. Phones or tablets are cheaper than credit card processing machines and computers. It makes it extremely lucrative for medium and small businesses.
How Do You Accept a Mobile Payment?
- Implementation of a mobile payment system. To start with you need to select the system which allows accepting money from clients. A lot of apps can be integrated with your PoS(Point of Sale) system. Do some research on fees and functions of different apps, sign up for the one which fits all your needs, and start to accept Mobile payments.
- Inform your customers. You can’t use the newly implemented payment system if nobody knows about it. To inform your clients, you can add the Accepted Payments section to your website. In addition to that post the update on social media, send emails, and just put the sticker with a Mobile Payment sign in your store.
- Motivate Mobile Payments with rewards. We’ve already covered all the benefits of using Mobile Payments for acquiring useful data. The custom loyalty program is just a must-have for any business owner especially for those who use Mobile Payments. So put your finger on the customer loyalty program to enormously increase your sales. The three basic types which fit this payment model: Loyalty program points, discounts, cashback.
- Update your books. Accept Mobile Payment but under any circumstances don’t neglect bookkeeping. Many seeing the fast and simple cash-flow forget this simple thing and then have to do it with the IRS.