As mobile payment options such as Apple Pay, Android Pay and Samsung Pay become more popular, businesses should invest in POS systems that accept them. While cash and card payment options are still commonly used, mobile payments are taking off thanks to their safety benefits and convenience. And, the increasing use of technologies such as tokenization and biometrics appeal to many consumers for their heightened focus on card data security. Mobile payment options have many other features that make them useful for both consumers and small businesses.
Take a look at some of the benefits mobile payment options have for consumers to gain a better understanding of why accepting mobile payments can be so important for your business.
More businesses than ever are implementing mobile payment options, whether in wallet or in app, according to the New York Times. (1) This includes major names like Disney, McDonald's and Uber. As larger merchants start accepting mobile payment options, smaller retailers must follow suit to offer convenience to their customers as consumers are always carrying their smart phones. Near field communication readers will appeal to this ever-widening crowd and help your business keep up with technology trends. Convenience, including order ahead features, has driven wide-scale adoption of services such as the Starbucks app, which includes one of the most prolific mobile payments on the planet.
One of the more important reasons for businesses to accept mobile payment options is to offer safety to the customer. As credit card data theft rises, more consumers are trusting mobile payment options, particularly those offering advanced levels of data transmission security and authentication technologies such as biometrics (e.g. a thumb or finger print). Thanks in part to these additional layers of protection, consumers often perceive them as safer than traditional card transactions. And, despite the many advances offered by EMV chip card technology, early adopter consumers find that the security offered by mobile transactions is matched equally with speed.
As Entrepreneur pointed out, services such as Apple Pay are becoming relevant in the consumer's mind. Before 2014, near field communication payment systems were far from a widespread trend. However, as their availability and power grows in the public eye, it will become increasingly important for businesses to invest in them. With so many shopping options at their fingertips, consumers are sure to pay special attention to businesses that cater to their tastes with modern technology.
According to Retail Customer Experience, it costs the same amount to process a mobile payment as it does a credit card. (3) Because of this, retailers and restaurant owners alike should incorporate near field communication devices into their point of sale systems to accept mobile payments. Many POS systems available for purchase include NFC readers at a small additional cost. Though an additional cost, many consumers who use mobile payment systems are loyal to that type of payment. This may lead them to be loyal customers at your store.
The Importance of Mobile Payment Acceptance
While services such as Android Pay, Apple Pay and Samsung Pay seem like trends, they are actually useful for businesses to accept. And, of course, it's important to move beyond just NFC-enabled wallets, something that Samsung Pay considers. Accepting mobile payments also helps small businesses because it shows they are willing to change with their customers. This leads to higher levels of trust between the consumer and business. Lastly, mobile payment options are considered to be the way of the future. As magnetic stripe cards are slowly phased out, it is natural that mobile payment options will grow in prevalence.