Throughout history, humans have developed a number of methods for exchanging goods and services. In less modern times, humans traded sheep, jewelry, as well as gold and silver. Later came dollar bills, checks and credit cards. Now we are currently in the process of a new form of exchange: mobile payments. For those that are not aware, mobile payments have become very popular – particularly with the millennial crowd – and will only continue to do so. Therefore, to help businesses owners and entrepreneurs become acclimated to this burgeoning payment method, below is a list of 5 insights on mobile payments that businesses need to know right now in order to stay competitive.
Insight #1: Get Started Now!
The number one thing that businesses can do to stay competitive is to get started with mobile payments right now! The mobile payments industry is growing extremely fast, so much so that Forrester Research found that the value of transactions via mobile payments in America is projected to grow to to $14 billion by 2019. Furthermore, a 2015 MasterCard study noted that approximately 56% of Americans use mobile digital payments or plan to soon. Considering that statistic, if you haven’t even started to implement mobile payments as a part of your payment options then you could be causing a major inconvenience for over half of your customer base. Simply put, the sooner you get started with mobile payments, the better.
Insight #2: Consumers Find Mobile Payments More Intriguing
One of the major reasons that consumers are transitioning towards mobile payment options is that they find them more convenient and even entertaining. It’s true – many restaurants and bars have reported that consumers have noted that mobile payments are a lot easier and more fun than writing a check or swiping a card. And because of this, consumers are actually giving more tips through mobile payments. The mobile payment app Flypay found that customers give a tip between 10 to 15 percent of the total bill for mobile payments, whereas they gave under 10 percent for credit card payments. Often, this increase in tips is due to the mobile payment app providing the consumer with tip options, as opposed to making the customer do the math themselves.
Insight #3: Look to Visa for Guidance
If you’re new to mobile payments and are looking for a major corporation as a guide, look no further than Visa. With 150 million transactions handled daily (which adds up to about 24,000 transactions per second) by Visanet, Visa is leading the way for mobile payments. In fact, Visanet has now worked its way into recently being named the world’s largest electronic payments network and confidently boasts that mobile payments will be the standard by 2020. Clearly, Visa knows a thing or two about mobile payments so don’t be afraid to follow or even implement some of their mobile payment strategies.
Insight #4: Make Security a Priority
Those that keep close tabs on the news probably are aware that cyber attacks are steadily increasing within nearly every niche and industry, so it would be very wise for businesses to make security a top priority, especially for mobile payments. Yes, there are a ton of benefits of mobile payments, but don’t let all of the benefits keep you from being careful and cautious. To get the most out of mobile payments, businesses should be sure to protect cardholder data security. One of the best sources of protection is an encrypting card reader with advanced encryption standard technology. This technology encrypts cardholders’ data so that it is unidentifiable from potential hackers. If you’re interested in learning more about advanced encryption standard technology, an excellent article explaining it can be found here.
Insight #5: Confirm Transactions at Least Once a Day
With the ease of mobile payments, businesses and managers should be careful that they don’t forget to track funds or payments. For starters, be sure to confirm transactions at least once a day (a lot of businesses do this at the end of day right before closing shop). Also, be sure to get familiar with your payment processing services payment schedule. Even if everything is running smoothly, it’s best to be proactive and become familiar with processing services sooner rather than later. This way, if there ever is a problem, you can save yourself confusion or anxiety as you are already familiar with the services and platforms.
With industry leaders calling mobile payments the future of monetary exchange, businesses and entrepreneurs should get started implementing mobile payments right away if they haven’t already. If you’re unsure about mobile payments, keep in mind the benefits noted above but also don’t be afraid to slowly implement mobile payments into your business. Remember, customers find mobile payments fun, so don’t feel as though implementation should be a high-pressure situation. Have fun with it. Educate your staff and customers together – the personal interaction could be a great customer-building experience!
Have you had any experience with mobile payments? If so, what are your thoughts on them? Feel free to share any insights or stories in the comment section below!