Nielsen Ratings’ 2014 Mobile Wallet Report states that 40 percent of those making payments with their smartphones prefer to use a mobile wallet such as PayPal or Google Wallet rather than their actual wallets.
Smartphone Payments Are the Future
A study conducted by the Federal Reserve Bank in 2014 found that smartphone payments at point of sales had increased by 11 percent from the previous year, with 17 percent of those polled having made use of such a payment option.
It is no longer a question of whether your business will need to accept mobile payments but rather when you will start to accept them.
The benefits to your business can be quite substantial – logistically, accepting mobile payment is not much different than accepting credit card payments – you just need to have the right app in place.
Capital One conducted a survey of businesses that had already started to accept mobile payments and the results were very positive. One out of 4 businesses made the switch in order to reduce need for a bulky point of sale system; 68 percent reported an increase in sales, 67 percent reported the system improved accounting processes and 63 percent reported that it improved ordering processes.
The benefit to the customer is also significant. They have no need to carry a number of different credit cards and will either be able to “swipe” their phone or tap to pay. For customers, this reduces the chances of card cloning and is a lot more convenient.
Many apps are free to download and can replace current point of sale programs. Sales are recorded in real time and sales reports can be downloaded with a few clicks. These apps make inventory control and tracking customer spending patterns a lot easier.
5 Mobile Payment Apps
Square: Square does not require any specialized equipment to work and can be downloaded for free. You do not pay any monthly fees, only a percentage of the sales amount.
PayPal Here: This allows clients to pay using their PayPal mobile accounts. They simply log in on their phones, check in with your business and transfer the funds through to your account.
Flint Mobile: The Flint app allows you to accept credit and debit card payments by scanning the card number (you do not need a point of sale device). This can be synced to a QuickBooks accounting system reducing the need to capture payments manually. You are charged a percentage of each purchase.
GoPayment by Intuit: This is one of the few apps that you pay a monthly subscription for, but the cost of the subscription includes the point of sale device needed to accept mobile payments. Your sales are automatically populated to your accounting software, reducing the need for manual input. You also pay a fee per transaction – a percentage of the amount.
Apple Pay: You do need hardware to make this work. Clients can pay using their Apple iPhone 6. All they have to do is to hold their phone over the point of sale hardware and authorize using their fingerprint.
More consumers are integrating mobile wallets into their lives, and businesses need a plan to capitalize on this trend while ensuring their customers’ safety. Smartphones have already changed the way that we conduct business. It makes sense that they will change the way that we pay for services as well. Businesses that avoid adopting mobile payment systems will find themselves missing out on a lucrative market.