Mobile payments are on the rise. BI Intelligence predicts that the number of in-store mobile payments users will reach 150 million by the end of 2020, representing a whopping 56 percent of the entire consumer population that year.
Clearly, consumers like paying with their phones. So adapting to mobile payments (sometimes referred to as NFC payments) is extremely valuable for your business. Letting people pay the way they want means you'll never miss out on future sales.
Beyond keeping your business relevant, there are a number of other key benefits to setting yourself up to accept mobile payments.
Contactless payments are the fastest way to pay. Usually, they take about a second to process. For businesses that have checkout lines, faster payments means faster lines (and more sales in a shorter amount of time).
People are carrying around less and less cash. But they have their phones at the ready. This combination makes mobile payments a convenient way to pay. There's no need to dig into your bag for your wallet at the checkout counter—you can just tap your phone to pay.
Mobile payments have multiple layers of dynamic encryption, making them an extremely secure way to pay. They're far more secure than magstripe payments, and just as secure as EMV chip card payments. Consumers can also activate fingerprint technology in most mobile payments solutions — another layer of security that protects data on lost or stolen devices. This security is not only comforting for your customers, but it should provide increased fraud protection for your business. Which means fewer disputes for your to manage.
It seems like a small thing, but accepting mobile payments can help you grow your business. Here's how:
In a Square consumer survey, respondents who had adopted mobile payments cited them as their ideal payment method, referencing speed, convenience, and security as their top reasons for continued usage. And perhaps as a result, these consumers reported a tendency to actively seek out businesses that accept the technology.
Not only do mobile payments users frequent mobile-payments-enabled businesses, most said they're likely to spend more once they get there.
Mobile payments users reported a likelihood to be more generous with gratuity. Data from Square's #PayFasterPortland event shows that customers who used their NFC device with Square's contactless and chip reader tipped more than customers who used traditional magstripe cards.
Waiting in slow lines is consumers' number one frustration when they in stores. A key benefit of mobile payments is that they're fast. A speedy line and checkout process make for a much better customer experience.
An Accenture survey found that 23 percent of millennials use mobile payments at least once a week. And in Square's survey, 45 percent of those who had adopted the technology were between the ages of 18 and 34. By accepting mobile payments, you can open yourself up to new, younger consumers.
Once you've decided that you want to take mobile payments, the first thing to do is find the right hardware. Square contactless and chip reader makes it easy and quick to get started. Plug in the reader, ring up a purchase, and wait for the green light to appear on the reader. Then have the customer hold the phone over the reader to pay with Apple Pay, Google Pay, or other contactless payments.
That's really all there is to it. But to set yourself up for success—and reap the benefits of contactless payments—you'll want to take a few more steps:
Mobile payments are a fast, secure, and convenient way for your customers to pay. By offering the option to pay with their phone, you'll create the best checkout experience for your customers and you'll be on your way to growing your business.
We are offering free 1 Month Basic Bookkeeping to all new customers so you can experience Accracy's seemless and professional services.
Wondering if online banking is right for you? We break down the pros and cons, as well as a few safety tips to help you protect your financial information.
Want to understand how efficiently you use your capital? You need to know your return on assets (ROA), a metric used by investors and owners alike.
With everything employers have to tackle, running a business can be tough. A Professional Employer Organization can help you focus on growing your business.
