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With the past year’s events, we have learned that now most people opt for contactless payment systems to keep themselves safe. More and more people are opting to shop online, and this has increased the online marketplace.
To create a good customer experience for your buyers, you must adopt a payment gateway that is accessible and easy, one of which is mobile payments.
As a small business owner, mobile payments offer a quick and efficient way to receive payments. It offers your customers a convenient and less time-consuming way to make payments for goods or services they buy from your business. Since most Americans own phones and tablets, this is one way to help your business sales grow because the payment system is accessible to almost everyone.
Mobile payments come in various forms, such as mobile wallets, mobile money transfers, and mobile money. They work similarly to electronic online payments, where customers fill in their details within the seller’s mobile application. Here is how adopting mobile payments can benefit your small business.
Mobile payments offer convenience for your customers
Using the mobile payments option for your small business makes it easier and faster to pay for your products or services. Even if not everyone uses mobile payments, some consumers will prefer businesses that provide mobile payment options to ones that do not.
When customers get to the checkout on your site, there is no waiting time, improving the customer experience and a chance of them coming back to buy from your business. Sometimes it also offers another option for a customer to pay, especially when their credit card is denied.
It is more convenient for your buyers to access multiple accounts without carrying their different bank cards. All the necessary information they need is right there on their smartphone.
Also, with mobile payments or electronic fund transfers, your customers can easily transfer payments from their bank account to your business bank account. All they need to do is authorize and initiate the transfer to successfully complete the transaction.
However, other mobile payment methods offer more convenience for customers. For example, if your business is using the Automated Clearing House (ACH) network to facilitate payments, you may ask your customers to complete an ACH authorization form to pay your small business without waiting for them to initiate the mobile transfers. Hence, with this form, you can automatically debit your customer’s bank account to get paid. This mobile payment method can be ideal if your business requires recurring customer payments.
With these things being said, there’s no question why many businesses have adopted electronic fund transfers or mobile payments as one of their payment methods.
Research by Statista claims that the pandemic sped up the adoption of contactless payment methods, and the trend is expected to rise. By 2023 there will be more than $1.31 Billion mobile payment transactions users worldwide. So if you integrate mobile payments for your business will be beneficial because it will widen your customer base and increase sales.
Mobile payment is more secure.
Credit card fraud is increasing, and more users complain that their cards have been used without their authorization. However, with mobile payment, they have advanced security systems in place at the point of purchase.
Some apps require fingerprint scans or face recognition before completing a purchase. Other apps even have added options where you can include more security steps to allow you to have control of how your money is used.
Different mobile wallets have strengthened their security. For example, Samsung Pay or Apple Pay uses tokens to pay for things online. Tokenization is a strategy they have adopted that is meant to protect customer’s data. The users can download the app and then add their credit card information to the app. Then your actual credit card number is replaced with a token number. You can protect the token with a fingerprint ID or password.
Since the token number is not the customer’s actual credit card number, it is useless to hackers and attackers. If the customer’s phone is stolen, they can call the service provider, and the process will be frozen, protecting their money. Such steps ensure the security of information on the platform and reduce the chances of credit card fraud.
Mobile Payments May Make Your Small Business Competitive
Given the popularity of mobile payments these days, there’s no doubt it’ll play an essential role in the way customers choose who to do business with. For example, customers who are looking for convenient and faster mobile payments may enter into transactions with small businesses that offer an easy checkout experience.
Moreover, implementing mobile payments can also make your small business more competitive during the holiday season. During this time of the year, you’ll more likely see long checkout lines in the malls, retail shops, grocery stores, and other commercial establishments. Thus, if you accept mobile payments for your purchase process, customers won’t hesitate to support your business since you provide an efficient customer experience.
Faster checkout for customers
This is especially beneficial for service-based businesses that usually handle a lot of customers at a go. For example, if you have a food truck selling fast food meals. When the line is long and you have many customers, mobile payments ensure faster collection of payments at checkout.
If customers know there is a place where they receive fast service, they will be loyal, which means more sales for your business.
It’s an opportunity for your business to stay on top of new technology
The use of mobile payments for your business is a chance for you to step away from the typical credit card payment system to an Omnichannel future where there will be numerous payment methods.
Research shows that nowadays, consumers spend as twice as much cash on digital channels and have a higher chance of shopping regularly if they use mobile payments. Businesses and financial institutions that move fast will gain loyalty and maintain the customers’ interest who adopt mobile payments early.
A company staying on top of tech is Samsung, where it has partnered with different grocery stores and allows its consumers to order groceries from their smart refrigerators. As a small business owner, you can get ahead of trends such as mobile payments and be ahead of the competition as mentioned earlier.
It will make bookkeeping easier for you.
When running a company, you need an easy and efficient bookkeeping system that allows you to send invoices, track sales, pay your bills, and share all the business transaction details with your accountant.
Mobile payments will also offer your business better cash flow management. Plus, you don’t have to pay the charges that banks usually charge for processing checks. Even if the mobile payments request some fees, they are smaller in comparison.
Mobile payments will improve customer experience.
Most people will embrace a service that saves them time, is easy and accessible. Mobile payments cut out long queues at the cash register or many prompts during checkout, which leads to cart abandonment most of the time.
By using mobile payments for your business, you not only provide convenience to your customers where they can pay for goods and services anytime, but you are also providing a good customer experience with your business.
Summing up, mobile payments will bring great value to your small business. Mobile payments are convenient for your customers, secure, suitable for bookkeeping, and provide a good customer experience. As mobile payments become more secure and popular, they will play a significant role in the future of business and finance.