Though Americans have historically been slow to adopt mobile payments, there has recently been a big uptick in mobile payments usage. Today, the increase in mobile payments popularity is largely driven by millennials – as those who grew up using mobile phones enter the workforce, mobile payments continue to grow. In fact, a recent study by Business Insider forecasts that by 2020 over 50% of consumers will be making mobile payments.
So, what is a “mobile payment”? Mobile (smartphone) payments use NFC (near field communication) technology to complete a contactless payment. With NFC, your smartphone and the payment terminal pass encrypted information back and forth to each other to complete a payment.
With so many competing priorities as a business owner, updating your payments technology may not be at the top of your list. But as technology plays a bigger role in consumers’ lives, it’s time to move mobile payments up to the top of your list. Here are five reasons that will have you saying, I need to accept mobile payments!
1. Customers love convenience
As phones become a fixed attachment to consumers’ hands, offering mobile payments is, in turn, offering convenience. Rather than riffling around a purse or backpack for a wallet – mobile payments put the wallet right in customers hands.
2. It’s very secure
NFC technology provides businesses and customers a secure transaction process. Each transaction generates a random, unique, one-time use code rather than transmitting the customer's debit or credit card number, as explained by cnet. Because mobile payments utilize one time codes during transactions - they are proving to be among the most secure forms of payment.
3. Improved customer experience
Who wants to wait in a long line? Nobody. Mobile payments speed up transaction time, allowing merchants to instantly accept payments, which results in reduced wait times, and better customer service. Customers also benefit from mobile perks like texted/emailed receipts, and the ability to manage both payments and mobile loyalty program at the same time.
4. Bring in new customers
Whether talking about technology early adopters and enthusiasts, are loyal to the latest technology or the casual user who may have forgotten their wallet at home the increasing number of articles on topics like “How to find stores that accept Apple Pay, Google Pay” and “Which Stores Accept Apple Pay? The Always Up-to-Date List” and even the app, Locator for Apple Pay, point out the growing interest in relying on mobile payments. So when a business begins to accept mobile payments and lists itself on mobile payments databases, the business opens itself to new business seeking out mobile payments.
5. Stay on top of the latest tech
While not important to all business owners, staying on top of the latest tech should be a consideration. The security and convenience that come with mobile payments are only possible through advances in technology. By staying on top of the technology available, businesses improve their operations and improve engagement with customers.
To learn more about mobile payments and the other technology customers love, take a look at The Technology Powering Wow! A comprehensive guide to using technology to serve up an unforgettable dining experience.