Creating a mobile processing planJanuary 2016 / Share
Business owners who don't implement mobile payment systems are already behind the times. The technology, which allows customers to link their bank accounts to smartphones and purchase items through applications such as Apple Passbook and Android Pay, has grown in recent years and is only going to expand in popularity. According to the most recent data released by the Board of Governors of the Federal Reserve, just 12 percent of mobile phone users stated they made mobile payments in 2011. By 2014, that number had jumped to 22 percent, with projections showing it will continue to rise.
A mainstream understanding of mobile wallets has also grown. In 2013, 8 percent of Americans said they were very familiar with the technology and another 42 percent were somewhat familiar , according to Consumer Pulse. By 2015, the number of people who are very familiar jumped to 18 percent, while 44 percent were somewhat familiar.
For business owners who want to reach this growing audience of customers, taking some simple steps to upgrade their mobile payment platforms can make a huge difference.
Picking the right system
Not every business requires the same type of mobile payment system. Business News Daily explained there are two key questions to answer before determining what style system would perform best for a company:
- Will the business mainly be doing sales in person at a physical store or remotely, either via an online store, catalog or over the phone?
- Is a merchant account needed? A merchant account serves as a middle man to review transactions and deposit money in the company's bank account. Some businesses require this service, while others can accept credit card payments without any authorization.
After those issues have been thought out and answers have been decided upon, the next step is choosing the type of system that can handle all of a company's needs without any complications or problems. Many business owners ask their frequent customers to learn what types of mobile apps they would use if that option were available. Mobile Payments Today explained that many mobile wallets have reward systems for loyal users , so many customers want to use the same payment plan as often as possible. Finding out what a business's regulars want can help make an informed decision about the best platform to use.
A lot to gain
Given the growing number of customers that use mobile payments to make everyday purchases, there is great incentive for business owners to adopt those systems. The number of customers that one is able to reach is not the only benefit, however. A business can also connect to their shoppers better than ever before via mobile payments.
Mobile Payments Today stated that an effective mobile payment strategy will boost online and in-store purchases, because the new technology makes the business more accessible than ever before. Having the online and in-store aspects of a business work in tandem will encourage more people to spend with a company, and the ease of transactions will keep those customers coming back regularly.
For business owners looking to implement a mobile processing system, consult with a financial expert ahead of time to understand the key steps that must be taken to make the new technology a success. Locate the nearest Vectra Bank location to meet with one of our banking professionals.
The information provided is presented for general informational purposes only and does not constitute tax, legal, business or investment advice.