What is a Mobile Payment?
When you hear the term, “Mobile Payments”, what does it mean to you? Is it when you use your mobile phone to make a payment with Apple Pay? Does it mean you can wave your phone near a reader to pay? Does it mean you are buying something online using your mobile phone and paying for purchases in your eCart? In summary, it means all of these things and more. If you are not accepting mobile payments, you need to be and we will explain why you should accept mobile payments.
NFC Mobile Payment Technology
Apple Pay and Google Wallet are apps you can download to your mobile phone. Once you have the app on your phone you can choose one credit card or several that will be used as a method of payment. If you use your ATM card to make convenience store purchases, you can continue to do so but in a faster way. If you use your American Express card to purchase groceries so you can accumulate reward points, you can still do that but in a faster manner using an NFC device. NFC or Near Field Communication terminal readers capture the signal from your cell phone much like a Blue-Tooth device captures a signal. Using an NFC device is known as an in-person payment. An NFC reader is needed for this service and sits on the counter. The customer simply taps the NFC reader with their phone and authorizes the transaction. There is no fumbling for your wallet looking for a credit card. Those who wear an Apple watch can simply hold their wrist near the NFC reader. For any merchant who owns a brick and mortar store, these devices are a must. In fact, by 2020, it is estimated that $503 billion will be transacted through NFC readers. Just as other manufacturers copied the iPhone, you can expect Kohl’s, Walmart and Microsoft to be launching their own versions of smart watches in the very near future and more and more customers will want to pay like this.
Mobile App Payments
Many companies who offer mobile apps also include a way to pay for your purchases through the storage of a predesignated credit card on the app. These apps include everything from Uber and Lyft to Domino’s Pizza. You set up your account in the settings of the app on a one-time basis and you never have to worry about it again. This makes it very convenient to order a ride or a pepperoni pizza with just a few taps of your screen. These payments are also considered mobile payments. Your data is encrypted as it travels through the internet so there is no possibility of your credit card data being transmitted into a fraudster’s hands. In applications like this, there is absolutely no human who ever sees your credit card information.
If your business doesn’t have an app, Chosen Payments can help you build an app specifically for your business and give your customers an easy way to complete their order for service or product. Nearly $37 billion was transacted last year on proprietary branded apps owned by businesses specifically to serve their own customers. Building a mobile app for your business is probably not nearly as expensive as you think it is.
Mobile Card Readers
If your business is one that is mobile, you need to be able to collect your money. Whether you have a mobile car washing service or an appliance repair business, mobile card readers are a great tool for business owners. Mobile card readers are a must for charity events if you want to sell raffle tickets, drink tickets or take donations for the cause. Everyone uses plastic to pay. If you participate in trade shows, farmer’s markets or community events selling food and beverage or products, having a method to accept credit cards is essential in a cashless society. Losing a sale simply because you had no way to collect the money is definitely not good business in a world of technology options. Mobile card readers plug into mobile phones, tablets and laptops and connect with a Chosen Payments provided application. With the Chosen Payments provided application and mobile card reader, you can swipe a card, dip a card (chip read) or manually key in the card.
Mobile Shopping Carts
eCarts or “shopping carts” on a website are another way for consumers to use a mobile device to browse websites and make purchases. This is also known as eCommerce. Websites should be optimized to be viewed on a mobile device or a desktop computer. The payment area of a website is your gateway to accepting money for purchases from your website. Optimizing for a mobile experience means the page loads fast, images fit the small screen size, forms and ordering processes are easy to complete with one finger. You don’t want users to have to pinch items open and closed to use them. Just remember that simplicity is best for websites intended to be used on a mobile basis. Chosen Payments can help you add an eCart to your existing website.
Mobile Invoicing Tools
Mobile invoicing is probably the newest trend that business owners are taking advantage of and recapturing a lot of time previously spent on administrative functions such as invoicing. Chosen Payments can move your invoicing to the next level and allow you to invoice your clients from your smartphone, tablet or laptop computer. Mobile solutions allow you to create invoices and send them from your mobile device, check the status of client payments and even track sales data.
5 Important Mobile Payments Statistics
- By the end of 2020, 56% of all in-store purchases in the United States will be paid for by a mobile payment. (Mobile Payments World)
- In 2016, there were 232 million smartphones in use; 16.5% of those were used to make a contactless payment in the same year. (Juniper Research)
- Mobile payments are expected to surpass the use of both credit and debit cards by the year 2020. (WorldPay)
- 72% of mobile payments users are Millennials or Generation X’. (Pew Charitable Trusts)
Most consumers would be willing to use mobile wallets if retailers, hospitals, and other relevant entities accepted them. (Wharton University of Pennsylvania)