Do you think mobile payment solutions are only for food trucks? Think again. Consumers are increasingly interested in making mobile payments to all types of businesses. In a study by the Federal Reserve last year, about one-fourth (24 percent) of all mobile phone owners reported having made a mobile payment--up from 20 percent in 2015. Younger individuals are adopting mobile payments even faster: 30 percent of mobile phone owners aged 18 to 29 have made a mobile payment.
Still not convinced of the value of mobile payments? Here are eight reasons to reconsider:
- Mobile payments help you provide faster service. If you own a retail store, accepting mobile payments anywhere in the store can help you eliminate long checkout lines–and that means happier customers. For restaurant owners, taking payments on a mobile device turns tables faster because servers don't have to go to the cash register to ring up the sale, then bring change or a credit card back to the customer. Even business-to-business companies can benefit from mobile payments. For example, you could take a down payment from a customer on the spot right when they sign the contract, and get started on their project or order immediately.
- Mobile payments save you time and hassle. Compared to depositing physical checks, which requires trips to the bank, mobile digital payment is quick and easy. This gives you more time to spend on the important tasks of running your business.
- Mobile payments can lead to bigger tips. Mobile payment solutions typically include the option to leave a tip, with several different amounts automatically calculated based on standard tip percentages. When customers don't have to do the math themselves, servers, manicurists, hairdressers and others tend to get more accurate (and bigger) tips. Plus, they can leave tips even if they're short on cash. That means happier employees.
- Mobile payments enable upselling. Accepting mobile payments makes it easier for salespeople to upsell additional services such as extended warranties or product accessories. Salespeople can use the mobile device to immediately call up information about the products or services they’re suggesting, and customers can easily make a decision on the spot.
- Mobile payments boost your cash flow. By eliminating the time-consuming process of generating print invoices, mailing them, and waiting for customers to mail back their payments, accepting mobile payments gets money into your business bank account faster. You also eliminate the risk of bills or payments getting lost in the mail.
- Mobile payments help you make more sales. Is your business mobile? For example, perhaps you sell products at outdoor events or have a pop-up retail location. Many businesses that formerly could only accept cash find a whole new world of sales opening up when they start using mobile payments. When customers can use payment cards, they are more likely to buy from you and typically spend more than they would with cash. Look for a mobile payment solution that also lets your customers pay on your website, and you’ll have even more flexibility.
- Mobile payments solutions can collect useful customer data. Look for a solution that tracks the details of customers’ purchases and payments for you. This is valuable data you can access later on to tailor product and service offerings to specific customers, track sales trends and more.
When choosing a mobile payment solution, make sure it offers a secure payment gateway and complies with payment card industry security standards.