Mobile payment is a way of making financial transactions through soft money. This is mostly done through different platforms/ applications found across the globe. Some of which can cut across from a person in one continent/country to the other.
Customers are not the only ones who benefit when you accept mobile payments. Nearly a quarter of entrepreneurs in the business industry say they like accepting payments anywhere, anytime. In addition, 18.33% who were surveyed, say accepting mobile payments is convenient for them. Another 8.69% say it helps improve their cash flow.
Paypal is the best option as per survey of those who use mobile payment, covering 76.19% . this is followed by Apple Pay (30.36%), Square (26.67%), Google Wallet (23.10%) and Venmo (21.43%). Zelle, Android Pay, and Samsung Pay are each used by about 18% of those in the survey.
There is also the likes of M-pesa from Kenya, where you can buy goods and services via your mobile phone, MTN, Orange, Pesapal etcetera, based in Africa.
Most consumers are increasingly relying on payment cards and smartphone apps rather than paper money. If you’re still sticking to cash out of some misplaced fears or worries, you are really lagging behind.
Concerned about risk? Accepting mobile payments is actually just as secure as using credit cards. The apps use tokens to encrypt the information during transmission and the consumer’s payment information is never stored.
Concerned about costs? When deciding if a particular mobile payment option is right for your business, it’s important to be aware of all the charges involved. Consider factors such as the transaction volume you’re likely to be processing, the size of the average transaction, and the setting in which you take payments in your business.
Doing business on-the-go used to mean accepting cash. But handling cash is cumbersome: Cash needs to be properly stored and it’s prone to loss and theft. Cash also makes accounting difficult since it does not leave paper trail.
Accepting electronic payments via a mobile point of sale is safer than handling cash. Many of today’s mobile payment systems are EMV compatible. That means electronic payments use the latest in secure credit card processing technology to protect you and your customers.
Mobile point of sale systems generates connections to modern accounting systems. This allows you to manage your business more effectively, especially if you’re managing a lump sum amount, or handling a franchise or multiple income sources for your business.
Mobile payments integrate loyalty and incentive programs in the mobile applications. When a client does a transaction for a certain amount, or a period of time, their information can be stored for reference at a later point when the incentive is due. This makes the customer want to return, which in turn increases revenue. This is not possible if payments are done through cash
Lastly, mobile payment can help in tracking inventory which helps to offer better customer service. Through tracking purchase, you can realize that a certain product sells most at a particular moment or day and thus work on increasing the product for said times to generate more revenue.
The reality is, there’s a cost to every type of payment acceptance other than cash. However, the benefits in reaching a wider customer base, increasing transaction size and capturing sales you might otherwise lose far outweigh these costs. Ultimately, the more types of payment options you accept, the more options you have for making a sale.