Preparing Your Small Business for Mobile Payments

In the last decade, mobile technology has made significant strides and smartphones have become ubiquitous. All of this indicates that mobile payment technology will soon become a standard option for POS. Consider the fact that like many people, you may not have any cash on you right now; however, you probably have your phone within easy reach. The reality is that how we pay for things is changing. Smartphones are likely to be the tools that we use for transactions in the future, both online and in brick and mortar stores.

 

Why Use Mobile Payment Options?

The Technology Giants Believe in it

In late 2014, Apple launched Apple Pay and Google Wallet has been around since 2011. The idea of making payments using a mobile phone app was hardly a new thing when Apple Pay was launched; still, its launch was taken as a sign that the technology was finally on its way to become a major factor in retail.

 

Convenience and Speed

Brick and mortar stores can use mobile payments to speed up transactions and thus customer turnover rates. There are no limits on how mobile payment technology can be implemented; however, it is especially valuable for retail and quick-serve food establishments simply because of its speed and convenience.

 

Decreased Fraud Liability for Merchants

This is of particular importance in light of the numerous high-profile credit card security breaches seen in recent years. Mobile payment technologies have protection measures to prevent fraudulent transactions. In addition, the merchant’s liability decreases since they are not the ones collecting and processing customers’ information.

 

More Affordable

Many small businesses owners see mobile payments as a more affordable alternative when compared to expensive POS terminals and card readers.

 

Lowers the Barriers to Sales

Furthermore, accepting mobile payments may help to bring in new customers and thus increase revenue. Consider the fact that many small businesses only accept cash. As a result, many lose sales because customers do not have cash on hand to pay for something. Just as accepting credit cards allows a small business to widen its customer base, so does accepting mobile payments.

 

No Sign Up Fee

Most mobile payment services do not charge a sign up fee and may even send you free card readers. In other words, there is no good reason why a small business owner should not try them out.

 

How to Choose the Right Mobile Payments System

There are many different mobile payment providers, each vying for their share of the market; however, not all of them are equipped to provide the same level of service. You will first need to determine how you will be using the service in your business. Some are intended to provide support for customer loyalty and rewards programs while others are designed to serve niches. Those niches may include food service and retail. Consider the following factors when comparing the available options:

 

Your Budget

While mobile payment systems may come with lower costs than traditional POS systems, they are not free. Look carefully at the transaction rates as well as at the system capabilities offered by your mobile payment provider.

 

Security

Choose a provider who is able to guarantee a high level of protection for your business. Transactions should be processed under the Payment Card Industry’s latest security standards. This often referred to as PCI compliance. PCI compliance is not law but it does provide some amount of protection to merchant.

 

Support

Find out the hours that your mobile payment processor guarantees live support. This is especially important if you do business on the weekends. If your system fails, having access to a live support team could be the difference between lost revenue and profit.
By end of 2015, business owners must upgrade their terminals to accept smart credit cards along with payment via smartphones. Many experts believe that the present rate of adoption is too slow and point to the fact that the US is lagging behind the rest of the world when it comes to payment technology. It is important that you recognize the benefits that mobile payments can provide for your small business and get on board with this latest evolution in payment technology.

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SMBReviews is committed to providing small and mid-sized business owners with the information and resources they need to select the best service or product for their company.

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