Mobile payment is gradually becoming the most favored method for in-person payments. Its major features involve security, real-time processing, and convenience. In fact, based on several online write-ups, mobile pay volume is forecasted to increase to over $500B by 2020. This projected growth is caused by the rise of NFC payments. Hence, adopting mobile payment solutions in your business is extremely vital to maintain competitiveness in the market.
How Do Mobile Payment Works?
This method of payment (aka mobile wallet payment) is often referred to as contactless payments as there’s no physical contact between your device and the payments reader. To pay at a store’s checkout counter, you can simply hold your device close to the NFC-enabled payments terminal. The reader should be within 2 inches of the source (mobile phone) to set the transaction in motion. And that’s it. You have already made your payment.
The process of a mobile wallet transaction is that your device (mobile phones or tablet) and the NFC-enabled point of sale are somehow “talking” to each other. Using specific radio frequency, they pass encrypted data back and forth to process the payment. This process all takes just a few seconds. The speedy transaction, in fact, is one of the coolest benefits of NFC payments. They only consume a fraction of the time of magstripe and chip card transactions—and definitely miles faster than paying cash.
Key Benefits of Processing Mobile Payments?
1. Customer Convenience
Prior to the use of EMV mobile payments, credit cards or other mobile payments solutions, there was mostly cash. Customers pay in paper bills and keep their changes from the depths of their pockets and purses. Fast forward to today, mobile payment systems turn that era to a distant memory. Although only a small percentage of merchants have adopted this payment processing at their business, those who already did know that the key benefit of it is convenience. This is one of the biggest customers’ concerns that merchants must prioritize.
Most widely-known retailers have begun accepting mobile payments as part of their retail strategy. Likewise, it a tactic to meet the need of tech-savvy consumers. By employing this method, businesses are making a big impact on the way consumers are now expecting stores to accept payments. Hence, it has positively affected the business’ bottom line. The advantages of mobile payment solutions offer great convenience to customers in terms of the check-out process,entering and storing of payment information and accessibility of data.
2. Trimmed Down Expenses for Merchant
Running a business is costly and every little bit saved counts. Picture processing a transaction at your business. You probably first imagine a credit card. This came to your mind without realizing what CC payments processing comes with, right? Credit card payment processing comes with an expansive point-of-sale system, the printing of receipts, and the use of separate tools to keep transaction records. Sounds a lot of hassles? Wait until you realize how it can be an expensive hassle.
The costs of buying, maintaining and replacing POS equipment, getting paper for receipts, and all other things in credit card transaction processing add up to your cost. This might not worry businesses with enormous customer base but for SMEs, the advantages of mobile payment solutions offer a nice cost-effective alternative. With mobile payments solutions, those many merchant expenses are dramatically minimized. When it comes to accepting payments, implementing a mobile payments system is comparatively a less expensive investment for merchants to employ than some other payment processing methods.
3. Increased Sales
While mobile wallet payments are helping you minimise your merchant expenses, it also helps you boost your business sales. Based on some statistics, about 32% of the most recent Cyber Monday revenue came from mobile payments. This figure explains the favor rewards of having mobile payments solutions in your business. The more payment options you offer your customers, the more they see doing business with you convenient, and the more people will use it. The more that people use it, the more sales for your business.
4. Easy Integration
Integrating mobile payments in your business is not just easy, it makes your life as an owner convenient too. We already talked about how your expenses can be reduced by mobile payment systems compared to POS. This is because you can simply integrate mobile payment into an existing business mobile app or connect to your current mobile device with a quick plug-in swipe reader. Mobile payments are designed to be easier, and that includes getting started with them.
5. More Security
With any payment method, there is a chance of fraud or a data breach. While this possibility exists, there are also several ways to secure your payments, and mobile payments are among the most secure. This method of payment has many data security and fraud prevention tools that a reliable payment processor can assist you with. Here are just a few ways to ensure top-notch security with your mobile payments:
- PCI Compliance
- Biometrics and Protective Passwords
- Address Verification System
- Secure Internet Connection
- Monitored Transactions
Risks of Mobile Payments
Now you know how this method would be beneficial for your business and they continue to evolve and improve with changing technology. But it’s also vital for you to understand the level of risk with any payment method, even one as favorable as mobile payments. As it becomes a more popular method, it will draw the attention of more cybercriminals looking for ways to penetrate the security in place. Below are areas to consider as precautions when offering this payment solution.
- Not paying attention to news of data hacks
- Using public wifi for banking
- Not regularly monitoring for suspicious activity
It’s one thing to hear about how the advantages of mobile payment solutions will benefit your business even more, but it’s another to make it a reality. CloudBanking can help make this real. When you partner with us, we guarantee that we have your back with products that meet your business needs. By working with us, the advantages of mobile payment solutions could make a very substantial difference for your customer experience and overall bottom line.