Over the years, we have seen the payment of goods and services evolve from one form to another: barter, coins, paper, plastic, and now, phones. People are now using smart phones all over the world to complete daily tasks including paying for goods and services. That’s why small businesses are encouraged to embrace mobile payments so that customers can pay as easily as possible.
Mobile payments encompass mobile wallets and mobile money transfers, both taking place through the mobile device. Mobile payment is gaining momentum especially with the need among consumers not to carry physical cash. The usage of mobile payments especially among millennials will continue to increase. It is suggested that by 2025, 75% of all financial transactions will be cashless.
Here are the top five reasons why small businesses should adopt mobile payment technology:
- It is the most convenient option for customers
Contactless payments are the most convenient transactions that can be completed a lot quicker. Mobile payments allow for lower wait times at check out which in turn improves the customer experience. Consumers can also access more accounts without the need to carry a physical wallet with all the different cards and cash. All the necessary data is stored in a mobile device. In 2015, a research done by Business Insider showed that 40% of millennials would rather switch to mobile payments and give up carrying cash.
- It is more secure
Carrying physical cash has a risk of either losing your money or worse, a thief stealing it from you. Digital money, carried by way of a mobile phone is much safer. Mobile payment service providers thus recognize the importance of strengthening the security of contactless payments. Service providers are using different methods to encrypt customer data – use of passwords and/or touch IDs are becoming common to further strengthen security measures to avoid instances of hacking and/or fraud. In case a phone is stolen, a payment activity can easily be frozen.
- It is an opportunity to stay on top of new tech
The use of mobile payments is a shift away from a card to an omnichannel future, where the payment methods will grow drastically. Business can get in on these trends early by incorporating mobile payments into their app or website.
Recent research shows that consumers spend more than twice as much money through digital channels and tend to shop more often if they use mobile payments. Retailers that move quickly will gain the interest and loyalty of the valuable consumers who are the primarily early adopters of mobile payments.
- It makes bookkeeping easier
When you run a business, you need an easy accounting system that will allow you to invoice customers, pay bills and share all your payments with the accountant. Introducing mobile payment solutions can help a business achieve better cash flow management. With the help of mobile payments, small businesses can reduce costs such as bank charges and overheads and can better evaluate their cash flow position.
- It improves the customer experience
People are ready to embrace mobile payments. Whether it is buying clothes or paying bills, people are more than ready and willing to accept a payment method that can help them to avoid wait times when paying for the goods and services. By providing an opportunity for customers to pay at any time, you provide not only a convenient solution but a payment experience.
The future of payments is going to be all about mobile. Implementing mobile payment will become an essential part of your business. One of the biggest advantages of mobile payments is a financial convenience which allows managing money anywhere and at any time. As they become more secure and customer-oriented, mobile payments will play a relevant role in the future of finance and consumers.