It’s no secret that mobile technology has been predominantly used in every sector there is, e-commerce in particular, to create better and personalized user experiences. With big retailers like Amazon Go, Macy’s, Target all turning to mobile payments to double up customer convenience, last year saw a significant increase in mobile check-out. 2019 is going to be no different.
Mobile is all set to drive retail growth in 2019. And in order to capitalize on it, businesses need to keep up with the trend and offer mobile payments to its customers.
The ability to have the right and power to access credit card information by phone has been the solution that all business personnel’s wish that they had from long ago. And a mobile device has now made it possible making connectivity much easier and reliable. With mobile payments, you do not have to be physically in your business area to handle the financial paperwork or receive payments anymore.
With the usage of mobile increasing rapidly, it is suggested that by 2025, 75% of all financial transaction will be cashless. Mobile payment users are projected to increase up to 150 million by 2020, according to a Mobile Payment World report.
The above numbers should convince you to consider the various advantages and benefits that mobile payments have to offer. And if you don’t, you may get left behind and lose out on significant business.
Merchant benefits of Mobile Payments
Payment Options: Accepting payments anywhere and anytime is the biggest advantage of mobile payments, whether you are a brick-and-mortar store, e-commerce shop or a travelling business. With a mobile POS you can swipe debit or credit cards or accept EMV chip cards. A recent but popular Near Field Communication (NFC) technology that supports contactless payment through POS is also available. By keeping the NFC-equipped smartphone near the POS reader, customers can make transactions within seconds. The number of NFC based smartphones is expected to increase to 5.3 billion by 2021 which will allow them to use any kind of mobile payments technology globally.
Increase sales opportunity & Widen customer base: You do not want to lose out on customers simply because you do not provide a payment method preferred by the customer. Mobile payment technology gives a wide berth to merchants in terms of flexibility and convenience thereby increasing their revenue generating opportunities. Simply attaching a card reader to the device will enable a merchant to accept payments outside of their store. This is especially handy for those working on-field or merchants that have pop-up stores for promotion. With the world going cashless, customers will continue to demand the option to make payments via mobiles. By offering mobile credit card processing, you increase sales and widen your audience too. Those failing to deliver will lose out customers and sales to competitors.
Easy & swift Check-out: One of the many operational benefits of mobile payments is that the payment process is simple and fast. A clunky and cumbersome check-out process can leave a customer frustrated. Often times, watching a long line at the check-out desk may also result in cart abandonment. To avoid that, merchants can provide their staff with mobile credit card processing tools which can enable them to accept payments from anywhere in the store thereby reducing lines at the till. This also increases customer engagement. Customers who make it through the line quickly and make payments smoothly leave with an overall positive shopping experience.
Track Inventory & User behavior: One significant advantage that a customer gains through mobile payments is the amount of valuable data retrieved through customers. This is especially helpful for small businesses that lack the necessary tools to gain consumer insights. While making payments, customers enter their card details which is then stored and available to merchants. Merchants are able to keep a track of customer data and make future business decisions on that basis. They can also monitor individual customer behavior, like what they order and how frequently and spending habits. This gives an edge to businesses that can then optimize their services and products according to the demands & requirements of the customers.
Customer Loyalty: The fiercely competitive nature of today’s business environment makes customer loyalty and retention an important business strategy. Mobile payment technology improves customer experience which in turn drives sales and increases customer loyalty. The effortless and flexible nature of mobile payments enables faster, smoother, smarter and meaningful customer interaction. This increases conversion rate and encourages customers to return. In fact, with the information gathered businesses can also implement loyalty programs by sending rewards and coupons to their customers.
Consider your Payment options
If you deem it necessary to accept mobile payments for your business, start by obtaining a mobile merchant account. Though attractive and extremely advantageous, merchants have to be extra cautious when signing up for mobile credit card processing services. With several merchant account providers offering variety of services each with different pricing options, you need to analyze what your business requires and find the right fit!
