May 14, 2014 Dave King
Some of the world's largest companies are beginning to enter the mobile payments space, and Amazon could be next. According to Retail Customer Experience, the online retailer hasn't revealed any plans, but it is in a good position to deploy a mobile wallet or point-of-sale system.
"All of these companies that started with e-commerce roots are now eyeing the physical world opportunity because that is where the bulk of the transactions are," said Jordan McKee, an analyst dealing with mobile marketing and commerce strategies at Yankee Group, told the news source.
Major companies are beginning to consider mobile payment systems because this technology offers numerous benefits for businesses, including the following three:
- Improve incentive programs - According to OPENforum, one of the biggest benefits of mobile payment systems is the ability to improve company incentive programs. For example, customers are able to save discount and store cards directly on mobile devices, as opposed to having it in their physical wallets or on a key ring. This enables a company to use targeted promotions via incentive programs, which can add value for a customer and increase the chances of people returning to a store.
- Track customer trends - For most businesses, customers are the driving force behind success. A mobile payments system allows companies to better track customer trends. If a restaurant uses this technology it can track which items are purchased on which days. This enables better inventory control, because if a lot of pizzas are sold on weekend nights, the restaurant can be sure to have ingredients in stock during this time to maximize profits.
- Increase checkout speed - At the end of the day, business is about making money. To make more money, businesses need to get the highest amount of customers through the line as possible, which can be made easier with mobile payments. Instead of swiping a credit card and waiting or fumbling through a purse for cash, customers are able to pay with a mobile phone, which is quicker than the aforementioned methods. More customers through the line translates to more money made.
Mobile payment transactions are becoming more prevalent, and it wouldn't be a surprise is additional businesses began to adopt the technology in the near future to keep up with competition.