September 7, 2017, 12:06 pm

Why Every Business Needs Mobile Payment Options

by: The Financial Blogger    Category: Business
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In the early 20th century, the charge card seemed to be the culmination of thousands of years of payment technology. Convenient, transactional, and utterly futuristic, payment cards first appeared in 1921, and by 1950, the practice swiftly increased in popularity to resemble the modern credit card system we know today. Yet, we now know that credit cards were only the beginning of a revolution in payment technology. In the 1990s, the emergence of the World Wide Web introduced the opportunity to make online payments — and in 2003, mobile payments began.

Today, mobile payments are slowly replacing the seemingly ubiquitous and everlasting charge card as consumers recognize the added security and convenience of storing payment information on their mobile devices. As a result, many consumer-focused businesses have slowly started adopting methods for accepting mobile payments. However, it isn’t just restaurants and retail stores that should consider using mobile payment solutions; every business can benefit from the payment options of mobile devices. Here’s why:

Gain New Payment Opportunities

The easier it is to make payments; the sooner customers will pay — this is a well-known truth among businesses struggling to fulfill their accounts receivable. It follows that the more payment options customers have, the easier it will be for many of them to complete their transactions and send over their promised cash. Mobile payment systems typically expand a business’s payment opportunities. For example, an SMS billing system allows businesses to accept payments over text, and various mobile services allow businesses to accept card payments when away from typical POS terminals. Ease of payment is a significant boon; for this reason alone, businesses should consider adding mobile payment options.

Increase Speed of Payment

For businesses and customers alike, the checkout process is fraught with anxiety. During this period, customers evaluate for the last time whether their purchase is worthwhile, and businesses wait on edge, hoping customers go through with the sale. One of the best ways to decrease cart abandonment and increase conversions is to make it as fast and simple as possible. Customers should not be forced to endure page after page of information gathering; they should be allowed to send their payment and be done. Mobile payments typically cut straight to the point, helping businesses get paid.

Decrease Transaction Fees

Admittedly, not all mobile payment systems are cheaper than traditional merchant services — but many are. While many merchants spend about 2 percent of every transaction paying their service providers, many credit card processors have agreed to lower these rates for mobile payment providers to encourage businesses to migrate to the mobile systems. Transaction fees can eat away a business’s profits, so it is important to reduce them as much as possible.

Improve Payment Security

One reason credit card processors are keen to lower rates for mobile payment systems is the enhanced security these systems promise. Though it might seem counterintuitive — because mobile devices are inherently connected to networks, which can be breached — the intense authentication processes required for mobile payment actually do increase security. Near field communication (NFC) chips, biometric locks, alpha-numeric passcodes, and more all work together to validate a transaction, so businesses and consumers are better protected with mobile payments.

Add to the Brand

Consumers have always been interested in the latest, greatest technology, which results in technologically progressive businesses enjoying greater patronage than their antiquated competitors. Mobile payments remain among the newest innovations for business-customer interactions, so businesses that adopt mobile payment options still benefit from customer excitement to experience the novelty. Interest in advanced technology can quickly become an essential part of a business’s brand, which will help that business retain tech-savvy audiences for years to come.

Learn About Client Trends and Habits

Understanding customer behavior is one of the hardest tasks for businesses — unless they automate it through their payment systems. Mobile payment systems allow businesses to track not only customer habits but also inventory, so businesses can recognize trends and be better prepared for meeting customer needs. Attentive customer service encourages customers not only to repeat their purchases but also to tell friends and family about their positive experiences.

Add New Client Programs

With the help of mobile payment options, businesses are finding it easier to integrate beneficial customer programs like loyalty clubs and incentives. Punch cards and ring cards are easily lost or ignored, but digital programs will continue to record payment activity and reward customers for engaging with businesses. Customers tend to be more interested in returning to businesses that value their patronage.

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