Mobile payments are growing, and they got a strong boost over the 2017 Thanksgiving holiday. Card Not Present reported that mobile online purchases reached $2 billion on Thanksgiving day alone. With that kind of spending power, it is definitely worth considering getting on board with mobile payment systems at your business. Knowing the advantages of mobile payment solutions will make sure that your business is prepared for an ever-changing eCommerce industry.
There are some common misconceptions about the utility and security of mobile payments, but if there is one thing we know about the average customer, it’s that they like choices. Adopting mobile payments gives your customers another choice in how they interact with your business. Not only will a mobile option be an asset for them, it will also benefit your business immensely.
There are some factors that may dissuade merchants from fully investigating the advantages of mobile payment solutions, given the perceived security risks, but we will take an in-depth look on just how beneficial mobile payments can be for your business.
The Five Advantages of Mobile Payment Solutions
Many mobile apps make a point to reward consumers with certain perks, and adopting mobile payments could give both your business and your customers advantages you will both appreciate. We will explore 5 important details of the benefits of mobile payments and it will become clear how the advantages of mobile payment solutions far outweigh the uncertainties.
FAST BREAK: Start accepting mobile payments now!
Advantage #1: Customer Convenience
Before there were EMV mobile payments and credit cards or other mobile payments solutions, there was mostly cash. Customers were fishing paper bills and change from the depths of their pockets and purses. Fast forward to today, and the advantages of mobile payment systems make those times a distant memory. Despite the fact that only a small percentage of merchants have adopted mobile payment processing at their business, those who have know that a major advantage they offer is convenience, which is one of the biggest customer needs that merchants all prioritize.
Well-known retailers, like Walmart, have begun to accept mobile payments as part of their retail strategy and are running with it to meet the needs of tech-savvy consumers. In doing so, businesses such as Walmart are making a big impact on the way consumers are now expecting stores to accept payments and in return, it has positively affected the business’ bottom line. Recently Walmart announced that their mobile payment method Walmart Pay, which launched in 2015, will likely soon surpass Apple Pay in terms of mobile payments usage volume. Their dedication to the mobile movement has paid off big in the tens of thousands of enrollees they get in their app daily, which leads to more sales. The advantages of mobile payment solutions offer great convenience to customers, such as:
- Expedited check-out
- One-time entered and stored payment information
- Easily accessible information
Though these seemingly small features don’t appear to make a big difference, to the customer looking for a convenient way to pay, the advantages of mobile payment solutions make all the difference.
Advantage #2: Reduced Expenses for Merchants
It costs a lot to run a business, and every little bit saved counts. If you picture running a transaction at your business, you probably first imagine a credit card. Then comes an expansive point-of-sale system, the printing of receipts and the use of separate tools to keep transaction records. Not only does that all sound like a hassle, it can also be an expensive hassle.
It may not seem like it, but the costs of payment processing can add up. The costs of buying, maintaining and replacing POS equipment, getting paper for receipts, and all of the little things that go into a credit card transaction add up. For some, the payoff is worth the expense given their customer base, but the advantages of mobile payment solutions offer a nice cost-effective alternative. With mobile payments solutions, those many merchant expenses are majorly reduced.
When it comes to accepting payments, implementing a mobile payments system is comparatively a less expensive investment for merchants to employ than some other payment processing methods. In some cases, all you will need is your business’s mobile app and a simple scanner, where you can process and manage records of all transactions in one place with NFC capabilities. In other instances, you might employ a mobile plug-in card swiper on your mobile device. Either way, the opportunity that mobile payments create to avoid making a huge infrastructure change or implementing a possibly expensive POS system offers a great advantage to the merchant over other traditional payment methods.
Advantage #3: Increased Sales
“Mobile payment processing technology allows merchants to accept more payment types and broaden their customer base, which means they’ll be empowered to drive more revenue.” -Vantiv
At the same time that mobile payments are helping you reduce your merchant expenses, they will also help you increase your business sales. For example, nearly 32% of the most recent Cyber Monday revenue came from mobile payments. This statistic translates very well in the favor of merchants who have chosen to offer mobile payments solutions. The logic is as clear as it is rewarding: When you offer more than one payment type, especially one that is as easy as it is convenient, more people will use it. The more that people use it, the more sales for your business.
Mobile payments systems give your customers the opportunity for a seamless payments experience. The advantages of mobile payment solutions, such as the ease of recurring payments, will incentivize customers to pay with you again, which creates the potential for increasing the volume of your sales. BONUS– accepting mobile payments will give your business a competitive edge over those who don’t accept mobile payments, which could mean a conscious choice for a consumer to shop with you.
Advantage #4: Easy Integration
Mobile payments aren’t just easily integrated into your business, they integrate easily into your life. Earlier, we talked about how the expenses of payment processing are reduced, and that is largely due to buying lots of expensive equipment. With mobile payment systems, it’s as easy as integrating payments into an existing business mobile app or simply connecting your current mobile device with a quick plug-in swipe reader. With other POS systems for brick-and-mortar or online payments, setting up a POS can take longer or might require extra hands to get started. Mobile payments are designed to be easier, and that includes getting started with them.
Advantage #5: More Security
With any payment method, there is the chance of fraud or a data breach. While this possibility exists, there are also numerous ways to secure your payments, and mobile payments are among the most secure. In a recent interview, payments industry expert Jason Oxman provided insight on the security standings of mobile payments:
We know that mobile technology — mobile payments in particular — is the most secure implementation of payments ever. When you factor in the tokenization technology for mobile users, so that your actual account number is never transmitted when you tap on your phone to pay, the biometrics — you’re paying with the validation of your finger, instead of a signature — it’s much more secure. The entire ecosystem, really, is more secure than ever. – Jason Oxman, ETA
When you are processing payments from the palm of your hand, it may not always feel like the most secure method. However, mobile payments solutions are becoming more secure every day, and there are many data security and fraud prevention tools that a reliable payment processor can assist you with. Here are just a few ways to ensure top-notch security with your mobile payments:
- PCI Compliance
- Biometrics and Protective Passwords
- Address Verification System
- Secure Internet Connection
- Monitor Transactions
With mobile payments systems, your business becomes more easily accessible to your customers, which is great! Unfortunately, it means your business can also be more accessible to cybercriminals. Fortunately, there are ways to be proactive against certain risks with the above security measures.
Risks of Mobile Payments
You’ve read why mobile payments would be beneficial for a business and they continue to evolve and improve with changing technology. But it’s also important to know the level of risk with any payment type, even one as useful as mobile payments. As a new payment method becomes more popular, it will draw the attention of more cybercriminals looking for ways to penetrate the security in place. Below we will discuss some areas to consider as precautions when offering mobile payments solutions.
How Risks Become Reality
Security is not a one-time deal; it is an ongoing process. There are many reasons why risks become reality, some of which are:
- Not paying attention to news of data hacks
- Using public wifi for banking
- Not regularly monitoring for suspicious activity
This year was a banner year for data breaches, the most notable being the Equifax breach. After 145 million customers were affected by the breach, it became even more urgent to look for ways to manage the risks that are a part of payments, no matter what method you use. The best way to beat the odds? Be proactive.
Don’t Be Panicked, Be Proactive
Mobile payments are still in relative infancy compared to some other payment types, and the uncertainty surrounding the security of them has led to slow adoption by some. However, mobile payments are among the most secure forms of payment. While it is easy to get caught up in the anxiety of what might happen with the mobile security risks, you can be proactive against the risks by knowing about the security measures available. Below are six security options to be aware of.
PCI compliance is a mandated form of security for any merchant who accepts credit cards, and this includes accepting credit card via a mobile device. It consists of a set of regulations that ensure the most secure processing possible, like restricting access to credit card data and doing regular security testing.
Biometrics and Strong Password
Strong, written passwords are still very much in use, but passwords are taken to a newer, more personal level with biometric security. The implementation of biometric security, as with Apple’s Touch ID, uses the fingerprint or other physical attributes to create an even more secure interaction. When you adopt mobile payments, customers have the ability to uniquely protect their information even more within an app with biometric protection.
Tokeniation plays a quiet role in the protection of mobile payments but has a big impact. For payment information stored in a mobile app, the process of creating a token to replace the actual credit card number when used for transactions creates a much safer payment experience.
Address Verification System
When you are going to process transactions, you need to verify that the payment request is a viable one from a true legitimate cardholder. To do this, a payment processor can help to implement an address verification system into your mobile payments solution. This system will compare the billing address from the transaction with the address of the issuing bank that is on file for the cardholder in order to validate the mobile transaction.
Secure Internet Connection
There are very few places today that do not have access to public WiFi, and because of this, we are able to do so many things on-the-go, including managing banking and payments for your business. However, public Wifi can be more vulnerable in some places than others. Establish a secure internet connection that you can primarily use to maintain and monitor mobile payments for your business.
PCI, tokenization and all manner of security measures will help you and your customers feel safer when accepting mobile payments, but one of the most important security measures is you. As the merchant, it is essential to take note and keep track of your transactions and look for any major red flags. Cybercriminals have numerous ways of penetrating mobile payments systems, so along with your payment processor, be sure to keep an eagle eye out for unusual transaction activity, such as multiples of the same order coming from one credit card.
No payment method is without risk, but the security that mobile payments systems use to minimize those risks. All of these security measures work together in creating the most secure mobile payments experience possible for you and your customers. Another way to keep your mobile payments secure is to have a great payment processing partner to help guide you in making the right choices for your business.
How Payline Makes Mobile Easy For You
It’s one thing to hear about how the advantages of mobile payment solutions will benefit your business even more, but it’s another to make it a reality. Payline has what you need to make it simple. When you work with Payline, you work with a partner who has your back and with products that meet your business needs.
Payline values your time, your budget and the best interests of your business, which is why we strive to make mobile payments work for you quickly and cost-effectively. Whether you are just starting out or are looking to grow your already-flourishing business even more, we have the mobile payments savvy to help you get where you want to be– processing payments quickly, easily and everywhere. Payline Start is a great fit for the multitasking entrepreneur looking for a reliable, low-cost solution for accepting mobile payments, and Payline Surge combines the familiarity of in-store transactions with the speed and efficiency of mobile payments solutions. No matter if you are just starting out with mobile commerce or expanding your business’s payments needs for continued growth, Payline is ready to help.
The advantages of mobile payment solutions are hard to dispute. Although there are risks to every payment method and mobile payments are no exception, there are fewer risks with mobile payments than other payment methods. Mobile payments are projected to be a big part of the industry moving forward and are already benefiting many businesses. With a processor like Payline at your side, the advantages of mobile payment solutions could make a very substantial difference for your customer experience and overall bottom line.
This piece was written by Lauren Minning, Content Specialist for Payline.