Mobile technology is booming. Mobile has become a part of daily lives of the people across the globe. The rise in mobile and technology can also benefit your business in a great way. Mobile payments are betting bigger. It’s been reported that over 70% of world population now owns a smartphone. Businesses of all size and shapes are increasingly accepting mobile payments by turning their smart phones and tablets into Point of Sale terminal.
There are numerous benefits of accepting mobile payments. First I will discuss various mobile payment technology and then benefits of mobile payment to businesses.
Why do you need to Accept Mobile Payment?
Experts predict that only 23% of the overall transaction will be done by cash. If you are not accepting mobile payment you are missing out on big potential income. The consumer may find it convenient to pay for their lunch or weekend short trip with their Smartphone. The ability to accept credit card payment has the most impact on mobile business such as food trucks or on-demand services business like garden care. Offering the ability to easily pay on the spot or with instant electronic invoice can increase sales dramatically.
Who Needs Mobile Payment Options and why?
Brick-and-mortar shops, Food trucks, restaurants can accept mobile payments as it will speed up the transaction time and improve turnover rates. The security of mobile payment is an added benefit. There are multiple safeguards against fraudulent activity and the merchant is not storing or processing customer’s sensitive information like credit card details so, the liability of the merchant is decreased.
Mobile Payments Technology
Today there are three major ways through which mobile payment transaction happen.
- Near-Field Communication (NFC)
- QR Codes
Near-Field Communication (NFC)
NFC is a contact less data transfer system. When two NFC devices come into the range, data can be transferred from one to another. It goes well with Bluetooth and Wi-Fi. NFS is a safe payment method as sensitive data is stored in a secure element either in a Smartphone or in a chip. Retailers may never be able to see the bank account details or card data.
iBeacon is a tiny device which transmitted Bluetooth low energy(BLE) signals at regular intervals. For payments, iBeacons will receive the payment information via Bluetooth from a smartphone. Often iBeacons are also used to for proximity marketing or as a geofence.
QR codes work similar to standard bar codes, With QR-codes reader mobile app, you can accept payment in a secure way. QR codes store more information than standard bar code systems. Scanning QR codes with Mobile apps will directly you to complete mobile payment.
Improve Customer Conversion
Regardless of what you sell, unique attribute such as accepting mobile payments improve conversion rate. The customer always wants to be delighted at shopping experience. Mobile payments empower you to cut down unnecessary steps in invoicing process with vendors. Unlike a paper-based invoicing system which consumes time and money. Improving customer conversion rate will help you increase your top line.
Accepting mobile payments can reduce cost and overheads to your small business. More saving opportunities come from smoother cash flow and reduce in credit period. Small business often struggles with getting paid on time by clients and customers. Mobile payment process can simplify and improve accuracy for invoicing, billing and bookkeeping thus reducing overall cost.
Access actionable data quickly
If you are a small business you often struggle with analyzing payments data & find ways to improve the process. By implementing mobile payment technology, you can easily track customer data. You can use this data analyze the shopping pattern, offer customized offers, set up newer campaigns to increase revenue. You will also have quick access to behavioral analysis of the customer data like how frequently they shop, what is their proffered payment method. For example, restaurants can track the data at POS system to analyze how customers are paying, what are popular orders.
Smartphone dependent customer
As a report from AdWeek suggests about 80% of the consumer ages between 18 to 44 carry their Smartphone with them for 22 hours a day. With such high engagement with a mobile phone, it has become an integral part of daily lives. Gartner Research report predicts that mobile payments will gain huge popularity in coming years. Mobile payment adoption is rising at 35% on the Year-on-year basis.
For small business accepting mobile payments offers a great opportunity provide better customer services, increase cash flow and efficiently manage finances. Small business should do their own due diligence and start accepting mobile payments.
Gaurav Kanabar is the Director of Alphanso Tech, a globally acknowledge IT consulting company providing services in the arena of the WordPress Development Services & iPhone App Development. With immense support from the adroit team, Alphanso Tech has been serving a huge client base worldwide.