Amidst the recent COVID-19 pandemic, banks expedited the process of creating their contactless cards, but other contactless payment methods have existed long beforehand.
Specifically, contactless mobile payments have been around since Coca-Cola first introduced SMS payments for their vending machines in 1997. Today, mobile payments can be made through a simple click on a smartphone.
Research shows that more than 4 out of 10 United States smartphone users had used mobile payments at least once in 2021. If you’re a business owner, this means you could potentially lose 4 out of 10 sales if you don’t offer mobile payments.
Mobile payments are a great payment option for customers and are beneficial for businesses. In this article, we’ll discuss the importance of mobile payments and why your business needs to offer them.
What You Need to Know About Mobile Payments
There are tons of mobile wallets out there, but the top two are Apple Pay and Google Pay. These on-the-go payment methods are convenient for the everyday customer who has an Apple or Android mobile device.
Apply Pay came out in 2014, and Google Pay was released the following year. Both use NFC (Near Field Communication) technology to make card-not-present transactions. Apple Pay and Google Pay are used for in-app, in-person, or online purchases.
For an in-person transaction, this means that a point-of-sale device has to be NFC compatible to accept mobile payments.
How Google Pay and Apple Pay work
Once a user inputs their card information or reloads their existing wallet amount, they only have to confirm their purchase at checkout with a simple click! Their smartphone’s fingerprint authorization, facial recognition software, or pin is used to authenticate the purchase.
Plus, all of a user’s private card information is protected by encryption. This process is called tokenization. Tokenization is when someone’s credit card data is replaced with an encrypted identification code every time it is used. Tokenization ensures mobile payments are always safe and secure.
The primary difference between Apple Pay and Google Pay is their privacy settings. With Apple Pay, Apple doesn’t retain any transaction information and doesn’t store or access credit card information whatsoever.
Google, however, has a setting that lets users opt-in to personalization. Users can also opt to show their creditworthiness to other Google companies and share personal information with Google companies for marketing purposes.
Why Mobile Payments Matter
Mobile payments are easy
Mobile payments are easier than traditional payment methods. For example, say a customer wakes up in their bedroom and remembers their payment is due today, but their wallet is downstairs on the coffee table. If they don’t want to run down to get it, they can use Apple and Google Pay to easily make their payment.
Mobile payments are convenient
More often than not, the average person always keeps their phone on hand. Fishing for a bulky wallet in a bag or pocket isn’t ideal for customers who need to be on their way. So, customers who prefer to leave their wallets behind can just use Apple or Google Pay! Their cell phone is easily accessible, so mobile payments are a convenient payment solution.
Mobile payments are fast
Mobile payments are great at increasing customer payment speed. There’s no need to re-input card information or billing information after every purchase. With just a click of a button, their payment goes through. This is great for businesses that are frequently busy.
Mobile payments are secure
The security for Apple and Google Pay is an additional aspect as to why mobile payments are beneficial. It can be deemed overly cautious for a customer to be protective of handing over their credit card, but nowadays credit card machines can be compromised without anyone noticing. Mobile payments can reduce the impact on your customers since their information is encrypted. With Apple and Google’s extra security measures, your customer can leave your place of business feeling great and safe.
Mobile payments have a large number of users
Last, but not least, both Apple and Google Pay’s large user databases are expanding every day. Apple Pay doesn’t disclose its user figures, but TechCrunch reports the mobile wallet is estimated they have a total of 43.9 million users. Google Pay is also expected to add about 10.2 million users in the next few years. That’s a lot of potential customers you don’t want to miss out on.
How Mobile Payments Benefit Your Business
Meeting customer expectations
The average customer expects different types of payments to be available. Therefore, with mobile payments, your business will be more appealing to those in need of your services. If they have Google or Apple Pay, there’s no need to send them away!
Expanding your customer base
Having mobile payments available also attracts new customers. Contrary to popular belief, mobile payment users aren’t just young and tech-savvy people. People across a variety of demographics use mobile payments, so your best bet is to accommodate all of them.
Increasing revenue and customer loyalty
Accepting more payment methods means more revenue. For a customer, you’ll be the better option in comparison to a competitor that doesn’t offer their preferred payment method. Essentially, you’ll earn a repeat customer and a consistent stream of income for your business.
Faster checkout = faster payout
If your storefront is busy, a customer doesn’t need to wait. Sometimes you and your staff are swamped when you need to see all your scheduled clients, and mobile payments are a great solution if you need customers to make payments quickly and on time. With a simple click of a button, they can send their payment right to your business.
Offer Mobile Payments with Denefits
To offer mobile payment options as a business, you’ll need to have a good payment processing system. If you’re looking for a simple payment processing solution, try Denefits.
Denefits is an easy payment solutions system that is free to use and requires no equipment. Don’t let your business suffer by not keeping up with the times! Offer complete payment options for your business with Denefits.
Customers can quickly and conveniently make payments to a business through ACH and card on their Denefits customer portal. Now customers can even use Apple Pay and Google Pay on the Denefits Customer app to make on-the-go payments! Request a callback today if you’re interested in learning more.