The Advantages of Mobile Apps for Taking Business Payments
Mobile payments have massively gained in popularity and usage over the past few years. For consumers, this is great. Having the ability to make an instant payment using your phone means that no matter where you are or what you’re doing, you can always very quickly purchase goods, if you’re in a store that accepts mobile payments.
Of course, it’s great having additional payment options for consumers, but what are the benefits of mobile payments for businesses?
In this post, we’ll be discussing the pros and cons of mobile payments for businesses, helping you to decide whether mobile payments are right for your business.
How Do Mobile Payments Work?
The technology that allows mobile payments to work, NFC, isn’t a new idea. In fact, RFID (Radio Frequency Identification) technology, which NFC is a subset of, was first patented in 1973.
NFC stands for Near Field Communication, and there are different forms of NFC that can be used depending on its intended function.
An active NFC device is one that has a power source, and as such can both read and transmit NFC data.
A passive NFC device has no power source, so it can store data that can be read by an active NFC device, and that’s it.
NFC is built into most modern smartphones, so if all that is needed to start making online payments is a mobile payment app, such as Android Pay or Apple Pay.
What Do I Need to Start Accepting Mobile Payments?
You would be forgiven for thinking that you may need a special device to accept mobile contactless payments. The truth is, as long as you have a reasonably up-to-date card terminal, you can already accept mobile payments.
Just make sure that your payment terminal has NFC built in and is mobile payment enabled.
So, What are the Benefits of Accepting Mobile Payments?
There are many business benefits to accepting mobile payments.
When it is considered that the aim of a business is to keep profit margins high whilst still providing customers with the best products or services, mobile payments can fit hand in hand with a business.
Below are the main benefits that we’ve selected for businesses accepting mobile payments:
- Convenience – For us, the best reason to accept mobile payments is the convenience it provides for customers. Not only could this convenient payment method improve customer satisfaction, but it can also lead to additional sales in cases where the customer would otherwise not have made a purchase due to inconvenience.
- Customer Data – Customers paying via mobile have profiles linked to their payment application, this data can be very helpful for businesses. The data can be analysed and used to benefit the business. Finding trends and patterns in this data can allow you to optimise your business and shopping experience for your customer-base.
- Automated Customer Rewards – If you’d like to set up a loyalty scheme for your customers, mobile payments can make for a much easier implementation of the scheme. Your system will be able to record payments from individual customers’mobile payment profiles. You can set up whichever rewards you wish to implement and have the system automatically provide them to your loyal customers.
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