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Mobile payment systems let customers pay for their purchases without using a card or cash. Instead, people save their credit or debit card details to their phone and pay through an app or near-field communication (NFC).
Mobile payments are growing constantly with projections putting the amount of money flowing through mobile payments reaching $503 billion by 2020. Knowing the benefits associated with accepting mobile payments can help you understand why it’s essential for you to implement them at your point-of-sale.
Five Reasons to Use a Mobile Payment System
Mobile payment systems can be easily installed. Some of the most common include Samsung and Apple Pay, which use an NFC receiver–the same thing that is used for tapping cards.
Some systems have online and retail versions–like PayPal. These allow customers to pay through an app or webpage. Apple Pay allows for both NFC and online payments as well, for example.
All of these versions are different flavors of the same thing, however. No matter what you’re selling, from coffee to digital goods online, accepting mobile payments can have a number of substantial benefits for your business.
Convenience and Speed
Perhaps the largest advantage of accepting mobile payments is due to the convenience they offer your customers. Being able to pay with your phone means that there is no fiddling with cards and cash. The tapping feature of NFC also means that payments are completed quicker, without having to put in a PIN or sign a receipt.
This is great for service businesses, who need to focus on the turnover of customers to make the most money. It can also improve customer satisfaction, as lines will move quickly.
Since you can also use mobile payment systems for your online store, the added convenience can help increase your conversion rate. Since customers only need to tap a button to checkout using Visa Checkout or another mobile option, you are better able to capture impulse buys.
Mobile payments are more secure than paying with a credit card. This is because mobile payments make use of modern encryption techniques to make it impossible for people to see your sensitive information. Encrypting customer’s data means that credit card numbers cannot be easily stolen.
Many mobile payment systems, like Apple Pay, also make use of tokenization. Tokenization is like encryption, but it replaces pieces of data, like a card number, with a unique set of symbols or tokens. This creates a sort of code that people cannot read even if they are able to hack into a payment system’s records.
Another reason to consider allowing mobile payments is the impact it has on bookkeeping. This is especially important for smaller businesses.
Mobile payments can be integrated with accounting software. This means your payment processor will add the transaction details automatically.
This reduces the amount of time your staff has to spend working with spreadsheets and eliminates data entry. It can also get rid of paper receipts since a linked email address on a mobile payment account can receive a receipt instead. Since information is auto-populated, the risk of mistakes is much lower.
This also allows for better integration through online and retail locations. Since the same method can be used, like Apple Pay, all of your transactions will be identically formatted.
An additional thing to note about accepting mobile payments is that they do not cost more than traditional credit cards. Visa payments through Apple Pay, for example, have no new fees. As already mentioned, if you already have point-of-sale terminals that accept NFC, there are no added costs for mobile payments.
Even if you don’t have access to NFC terminals, we offer free payment terminals for retail businesses! You can sign up to get a free savings analysis to show how we can benefit you.
Integration with Loyalty Programs
Finally, the last reason you should consider a mobile payment system is because of the potential integration with loyalty programs. Instead of using a standalone card or key tag, programs are linked to apps and phone numbers.
A well-integrated loyalty program can turn new customers into repeat ones. Further, it can also encourage increased spending by regulars at the same time. Loyalty programs are also a good form of marketing, as the rewards offered can help boost customer satisfaction and your brand’s image.
Loyalty programs also allow you to access more personal information from your customers. This allows you to target your customers better with deals and ads. 25 percent of adults said that their customer experience improved after companies began collecting their data.
Mobile Payment Systems Are the Future of Payments
Mobile payments are on track to represent 49 percent of all online retail sales by 2020. It’s essential that your business begins to accept them if they don’t already so that you’re not left behind. The benefits mentioned above will also have an immediate and tangible impact on your day to day operations.
Now that you know all of the ways that mobile payment systems can benefit your business, you can decide if it is worth it for your location. If you have any questions about what your options are, or what the process of implementing mobile payments looks like, feel free to get in touch with us.
SeamlessMerchant can save you thousands of dollars each month through our payment processing software–and set you up with a free POS terminal!