TECH TALK WITH MIKE: Should your business accept mobile payments? | Across Indiana
Mobile payment technology has steadily gained popularity with businesses and customers looking for a convenient way to make and receive payments. Although there are many forms of mobile payments, the term â€œmobile paymentsâ€ refers to transactions made from mobile devices. This payment allows businesses to receive payments from apps, such as Samsung Pay, Apple Pay, and Google Pay, which customers download to their smartphones.
While some businesses are already using these payment methods, others are still at a crossroads, wondering whether or not to consider them. Well, here is some information that can guide your decision.
Did you know that over 50% of customers don’t carry cash every day, and if they do, they carry less than $ 20. This is a small amount that does not allow for large purchases. While some prefer to make payments for large purchases with credit cards, customers can easily forget their wallet with their credit cards at home. And, while many people regularly forget their wallet, you rarely hear from anyone who forgot their smartphone.
Smartphones are practically strapped in everyone’s hands. Mobile payments make it easy for customers to pay for their goods and services. Easy payment options also help build customer loyalty. That aside, you can equip your sales teams with this payment technology. This means that customers can pay for their goods anywhere in the store instead of having to stand in line.
Tracking trends is important because it helps businesses identify customer trends, especially top buying and spending patterns of customers. Mobile payments make it easy for businesses to analyze this customer data and identify trends. This information can then help personalize sales and marketing promotions. Customer data tracking also allows businesses to build personalized product and service recommendations based on previous customer purchases.
The 2011 federal government policies on credit and debit card transaction interchange fees capped processing fees for purchases made with a debit card, but did not restrict card processing fees. credit. As a result, businesses that accept credit cards can now save money by integrating mobile payments.
Several mobile payment options charge much lower transaction fees than some credit card providers. Others offer reduced fees for a set amount of monthly credit card purchases. Even though mobile payment technology only saves you pennies, it can add up to significant sums throughout the year.
Cyber â€‹â€‹attacks are a real threat to businesses and customers using digital payments. A compromised point-of-sale payment system can have disastrous financial effects on a business. However, mobile payments alleviate some security concerns. For example, instead of keeping your customers’ debit or credit card numbers, mobile payment technology uses tokenization, which secures this information.
While mobile payments are beneficial, you should beware of the following risks:
While mobile payments offer enhanced security, they are also a security threat just like any other transaction that depends on internet service. As mentioned, these payments use tokenization to encrypt customer data. However, businesses need to make sure they’re using the latest encryption technology to protect the business and customers from data theft.
Different customer expectations
While mobile payment technology is too convenient, it really only appeals to a young audience. Therefore, it may not be practical for an older audience that is less tech-savvy. You should assess the demographics of your customers before implementing this payment technology.
Integrating mobile payment technology into your business can position you ahead of your competition and help increase sales. However, getting started can be quite expensive as you will need to update your POS systems to support this technology. Therefore, perform a cost-benefit analysis and weigh the pros and cons to determine if your business is taking advantage of this technology.
Mike Gingerich is President of Digital Hill Multimedia (www.DigitalHill.com), a website design and marketing agency. He is also co-founder of TabSite.com, a leader in Facebook page applications for businesses. Listen to his social media and web podcast, Halftime Mike, available on iTunes.