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When talking about mobile payment processing, what comes to mind? A small device you plug into your phone or tablet that lets people swipe credit and debit cards? Or perhaps you think of the company behind those devices and how they function with the cloud in accepting payments from a phone. Regardless of what comes specifically to your mind, a mobile payment processor deals with both the actual device, and the company accepting and processing the payment. And if you’re a business owner that hasn’t implemented some form of mobile payment, both in accepting and processing them, you’re rapidly falling behind the times. Here are some of the top reasons why you need to get your business a mobile payment processing solution right away.
Popularity of Card Payments
If you haven’t noticed already, card payments, both credit and debit, are becoming more and more popular. Sure, cash is still used plenty often, and you’ll see people writing out a check every now and then (though they’re usually older folks), but cards are the most commonly seen form of payment. And while statistically, they are individually used less often than cash, together, debit and credit card payments make up 42 percent of all transactions, according to the latest triennial (every three years) payment type study conducted by the Federal Reserve Bank of San Francisco, which compiled information about spending habits from 2012. And while that 42 percent is only two percent above the 40 percent of transactions cash is used in, cards are responsible for 34 percent of all transaction value, compared to the 14 percent share of value cash is responsible for.
So, based on popularity alone, it’s absolutely critical that you equip your business with the capability to accept and process mobile card payments.
Speed and Convenience
While using cash is certainly easy enough in most cases, mobile payment solutions, like credit and debit cards, are far more convenient and easy to deal with. Think about the average time it takes a customer to go through a queue and then pay for something with cash. They need to get the cash out, and if they pay with exact change, they need to count out that exact amount of money. If they just hand over a $20 bill, then the employee needs to take the time to get the customer’s change. By using a mobile payment solution like Shopify, the customer swipes, signs or enters a PIN, and the transaction is completed. Additionally, according to the US Small Business Administration, customers who use a card when shopping are far more likely to make impulse purchases, meaning your business makes extra money on more sales that weren’t planned by the customer.
Going Where the Money is
As you might expect, the mobility and flexibly provided by mobile payment devices and services is a huge benefit to your business.
Being able to accept a payment immediately from a willing customer, wherever you are is not only convenient for both parties, but an excellent way to provide a stellar customer service experience. How many consumers do you think expect to be able to make a purchase they want right away at the beach, or wherever you are?
Even farmer’s markets, craft shows, and conventions can benefit from mobile payments. When shopping a busy open-air market, many people are uncomfortable carrying lots of cash, which is the traditional way to pay at a market stall. However, if you can take their credit cards, you not only gain the trust of the client, but allow them to buy more during the purchase. You can even be a hero to the other vendors around you who may not take cards, because the customer might go and spend even their cash at those stalls.
Security is Key
Especially when you think about the recent hacks of big franchises like Home Depot and Target, you can see how security is important. Thankfully, mobile payment processors can offer your business, and your customers, much better security features. According to Business News Daily, when picking a processing service provider, you should make sure they are PCI DSS (Payment Card Industry Data Security Standard) compliant.
Finally, mobile payment processing solutions can help your business with recordkeeping by streamlining and automating a lot of tedious paperwork. According to MagStar Inc. more consumers are beginning to look for paperless receipt options, which means you can collect their email information when you send them their receipts digitally. Additionally, if you get a payment solution that offers it, you can integrate the processing system directly with your other recordkeeping systems, allowing everything to automatically update when a transaction is made. Your stock levels will automatically change to reflect the sale of products, your bookkeeping system will automatically log the transaction, and your accounting system can update the daily reports to reflect the transaction as well.
Upgrading your business to a mobile payment processor is fast becoming a necessity instead of an option. But even so, upgrading now can provide your business with tons of benefits.