The mobile payments for business ecosystem today faces a bit of a chicken and egg conundrum: you can’t have one without the other.
Without consumers showing strong interest in mobile payments, businesses won’t buy into the technology. But without businesses integrating new systems, consumers don’t have ample opportunities to use mobile payments.
But, from a business perspective, there is value in mobile payments — and the trend isn’t going away anytime soon. So what can a CEO or business owner do to stay relevant?
Invest now, or risk paying later. Because so many businesses are upgrading their payments software, and integrating systems that enable more flexible onboarding of new technologies, now is the time to think about where mobile payments fit into your business model.
Eventually, the mobile payments tide will turn, and when it does, you don’t want to risk wasting time and money playing catch up.
Why Mobile Payments For Business Matters For Loyalty
The biggest use case for businesses integrating mobile payment technology is the chance to increase customer loyalty and grow sales. Case in point? Starbucks’ massive mobile payments momentum.
In Starbucks’ 2017 Q1 alone, mobile payments for business accounted for 27 percent of all company transactions made in the U.S, which has played into its overall growth. Starbucks attributed this growth to its ongoing commitment in investing in mobile payment technology, as it’s been doing since early 2011 (far ahead of the curve).
By connecting its customer loyalty rewards program to mobile payment technology, Starbucks has given other businesses an insider’s look at how to actually make consumers care about mobile payments in a way that has a meaningful impact on its bottom line.
Why EMV Will Be a Catalyst for Mobile Payments
There’s been plenty of business owners, merchants and CEOs who have voiced their frustration about the process of becoming EMV compliant. Not to mention the fear that they will upgrade their payment terminals, only to realize they are already behind the next big trend.
While businesses can’t get away from accepting credit cards, enabling mobile payment technologies at your business can future-proof your payments strategy. In terms of reaching consumers who are already looking for a faster, easier and more secure way to pay, mobile payments for business can instantly eliminate friction at checkout (online or in person).
The EMV transition has also created a fragmented payments ecosystem — leaving consumers wondering at checkout if they’re going to need to swipe or dip their card. For businesses ready to embrace mobile payment technology, that frustration can be eliminated with a simple tap at the terminal, or one easy click online.
From the perspective of a business owner or CEO, what you want to provide is a payment experience that ensures consumers not only want to do business with you, but also that you’re enabling those payments to be fast, frictionless and secure.
Mobile payments checks off each of those boxes, providing a mutually-beneficial solution that gives businesses peace of mind they are offering a future-proofed, secure way for their customers to pay.
Anna Lothson is a content contributor for Payline Data. She previously wrote for PYMNTS.com, as a Sr. Content Producer, where she focused on financial services and payments innovation, fraud and security, emerging payments, and FinTech news, research and thought-leadership content across the payments industry.
