The ability to process payments from anywhere is a benefit to customers and businesses that extend far beyond convenience.
Here are just a few of the reasons your business should take payments on the go.
You’ll Reduce Purchase Hesitancy
We live in a culture of instant gratification, thanks to mobile devices, social media notifications, on-demand apps and the constant connectivity to the global community all of these technologies provide.
While some of these tools have made society as a whole more efficient, they’ve also created a culture of impatience. In fact, in 2000, the average person’s attention span was about 12 seconds. By 2015, that number had dropped to less than eight seconds.
Businesses cannot afford to make customers wait even if checkout processes are buttoned up. Taking payments on the go allows you to work with the limited amount of time customers are willing to invest into making a purchase. Armed with a mobile device that processes secure credit and debit card payments, you can literally meet customers in the exact the moment they decide to buy regardless of where they happen to be in that moment before you lose them to the next distraction.
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It May Not Require Any Upfront Investment
If you own a smartphone or tablet, accepting mobile payments may not require an upfront investment or involve complexity to get started. Though some mobile payment providers offer the option to use either a dongle that plugs into the headphone jack of a mobile device or their secure payment-processing app to accept customer payment on the go, many providers offer the dongle free of charge. Assuming you have a business bank account, you may need only to establish a merchant account with a mobile payment provider to start processing payments on the go.
Payments on the Go Are an Affordable Way to Process Chip Cards
Reportedly, 70 percent of cardholders in the United States now have a credit or debit card that includes a magnetic strip on the card’s back and a metallic chip on the front. The chip indicates an EMV-enabled chip card. Most were formally introduced into the American financial system in the fall of 2015, having successfully reduced incidents of payment security fraud and similar breaches in other countries.
Despite the security benefit EMV chip cards can offer, many merchants have yet to transition their point-of-sale systems to accommodate them. The cost of an EMV terminal may be at least partially to blame: CreditCards.com reports that one fixed point-of-sale terminal can cost a business as much as $1,000. Yet, if a business is involved in a payment security breach and is found not to be equipped with EMV payment processing tools, it could be made to absorb the financial implications of a breach. It’s estimated that security breaches cost the average small business about $38,000.
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Mobile payments can be a cost-effective way to protect your business from such financial risk, without requiring you to invest thousands of dollars in processing customers’ EMV chip cards. In fact, many mobile payment providers offer EMV-enabled terminals for less than $100.
Your Accounts Receivables Could Benefit
Consistent customer sales look good on paper, but your business is only as financially stable as your access to liquid cash. If your sales process includes invoicing customers by mail or email or accepting personal checks, mobile payments can inherently reduce cash flow strains and improve your business’s financial security.
Mobile payment providers vary in the fees they charge to use their services, but most providers deduct applicable fees and transfer the remaining balance you’re owed after an approved transaction electronically to your business bank account in less than five business days. Aside from the convenience of electronic transfers, you no longer have to hope a customer’s check clears or that they’ll pay what they owe at all.
Plus, when you’re equipped to accept payments on the go, you can enforce the business payment policies that work to your advantage based on cash flow needs, experience with a customer’s payment history and your future plans for expansion. At the same time, mobile payments empower customers to choose whether they want to pay using their debit card or credit card, based on their personal finances. Paying with credit may also allow customers to earn rewards or take advantage of extended warranty programs their creditor offers.
Related Article: EMV 101: What You Need to Process Credit Cards Today
You Can Cast a Wider Net
Mobile payments allow you to sell to any customer, at any time from anywhere. Payments on the go allow you to process customer payments at festivals, pop-up events, conferences, the customer’s home or office, or your business’s brick-and-mortar and location. You also can arm any number of your employees to sell using your secure mobile payment merchant account on their respective mobile devices.
Mobile payments are indeed convenient, but they’re also a win-win for businesses and customers for a host of other reasons. Customers can choose how they want to pay, and you can improve your processes and financial standing while managing security risk and operating costs.