Both mobile payment technology and acceptance is on the rise. Business Insider predicts that by the end of 2020, brick and mortar mobile payment users will reach a whopping 150 million. Apple pay and other digital wallets have set the stage for mobile payments. If you’re not already convinced, here are some reasons why your store should accept mobile payments.
Enhanced Customer Experience
There’s nothing your customers hate more than waiting in long lines. In fact, long lines will often deter potential customers from even shopping at your store. Mobile payments are much faster than magstripe and chip cards.
In order to complete a transaction, a customer simply hovers their phone over an NFC (Near Field Communication) and they’re done. Mobile payment capability varies depending on your payments provider, so make sure you find a payments platform that best suits your needs. The quicker your checkout and payment experience, the more your customers will value shopping at your store.
It’s no lie that millennials represent a huge portion of our consumer spending in the United States. In fact, it’s estimated that millennials account for a staggering $1 trillion in buying power. In addition to that, an Accenture survey found that 23% of millennials use mobile payments at least once a week. Both of these numbers only continue to grow, which is why businesses should look to update their payment technology.
Consumers not only prefer businesses with mobile payments, but they are likely to spend more money there. This isn’t solely because the experience is more convenient. It also plays into smartphone usage as a whole.
A poll done by CreditCards.com suggests that 77% of consumers definitely increase mobile payment usage if rewards points were offered, 69% would increase usage if store receipts could be securely kept and tracked, and 61% would increase usage if they were notified of upcoming events at the store.
Rewards programs and smartphone notifications are a great way to enhance your mobile payment experience. You can also allow your users to conveniently store rewards points and receipts directly on their smartphones. All of these strategies can be easily implemented into your mobile payment system and will surely increase your bottom line.
Like EMV chip cards, mobile payments are protected by complicated tokenization methods. In fact, mobile payments are the most secure form of payment. In addition, we’re seeing the application of biometrics being implemented into mobile payment systems. Fingerprints and handprints add another layer of security.
Many mobile wallets provide Payment Card Industry Data Security Standard, (PCI DSS) which ensures consumer data is secured. In addition, security features like 256-bit SSL is common, which ensures all consumer data is encrypted. While payment security is never perfect, we can assume companies are working tirelessly to improve security, especially for mobile payments.
The world of mobile payments is definitely evolving as Fintech technologies make headway towards quick and secure ways to make payments. If your brick and mortar store hasn’t done so already, it’s probably a good idea to start making the shift towards equipping your business for mobile payments.