Advantages Of Mobile Payments
Looking for payment technology that keeps your operating costs low and ensures you give customers the convenient experience and payment flexibility to compete with larger retailers? Mobile payments can deliver on all of these objectives, and more. Here’s a look at just a few of the advantages mobile payments can offer your business:
Overcome costly customer impatience. Mobile technology provides users constant connectivity and nearly instant gratification, but it has raised consumer expectations from merchants of all sizes. In e-commerce environments, studies on the impacts of website load times reveal a 7percent reduction in checkout conversion for every second the customer must wait for a web page to load. Customers are equally impatient at the physical point of sale, regardless of how efficient your checkout process is. In fact, Duke University researchers discovered customers rely on their perception of a checkout line’s wait time based on the amount of people in it, rather than the speed the line moves when determining whether they’ll purchase or abandon the transaction. (In other words, a high demand for your products could cause you to lose customers.) Mobile payments conquer this costly point of sale perception challenge by providing an alternative to the traditional checkout line. Armed with a smartphone and access to your mobile payment merchant account, any member of your staff can process customer transactions anywhere in your facility, the moment the customer is ready to buy. Since receipts can be electronically delivered by email or text message, there’s no need to remain connected to point of sale equipment — like a printer or paper.
Your small business can keep pace with shifts in the payment landscape. Your processes must be on par with the conveniences offered by large corporations to compete for share of market, despite the size of your business. While mobile payments have been in the marketplace for several years, recent innovations like Apple’s mobile wallet ApplePay has heightened consumer and industry awareness of mobile payments as a means of enhanced convenience. With the introduction of ApplePay, iPhone 6 customers now have the option to use their mobile device to pay for goods and services at more than 220,000 ApplePay partner merchants, which include retailers, financial institutions, restaurants, amusement parks and even vending machines. Apple is yet to release specific adoption numbers behind its mobile wallet, however the technology is expected to shift the payment landscape and consumer’s preferred payment tools. In fact, Gartner Research predicts mobile payment adoption rates will average a 35 percent growth rate until 2017 —resulting in more than 450 million global users, and a transaction volume of more than $70 billion. Incorporating mobile payments into your business model equips you to replicate the same transactional experience as larger brands without requiring you to invest in new technology, or the infrastructure to support it. If you’ve got a smartphone and a bank account, you’re equipped with all the tools you need to apply for a merchant account with a mobile payment processor.
Expedited access to funds. The speed you can transform customer payments made by cash, checks, credit and debit into available funds is critical to your ability to satisfy your own obligations to vendors, make new investments into your business that will fuel growth, and sustain periods of stalled demand. Though the Federal Reserve recently announced initiatives to improve time delays within America’s banking system, the current processes associated with depositing paper checks and completing electronic and ACH transfers can be delayed as long as a week — in addition to the inefficiency associated with conducting financial transactions at a bank branch. While mobile payment processors vary in their settlement times, most automatically transfer funds electronically to your business bank account, less nominal processing fees, within 24 to 72 hours.
Expanded reach. When you rely on a fixed point of sale system to transact, your market reach is limited to customers in your geographic location. When you accept mobile payments, you can transact with audiences outside of your geographic footprint, even at remote locations including trade shows and local events.
Kristen Gramigna is Chief Marketing Officer for BluePay, a credit card processing firm. She has more than 20 years experience in the bankcard industry in sales management, direct sales, and marketing.
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