Feb 11, 2013 Dave King
Recent advances in technology have allowed businesses of all kinds to create more efficient and attractive strategies to reach new consumers and improve loyalty with existing patrons. Experts believe that electronic payments, especially prepaid cards and mobile transactions, will begin to replace cash as the most common methods of exchanging funds in the coming years.
As several reports indicate that these practices are effective in reaching unbanked and underbanked households, coupled with the fact that mobile payments are increasingly preferred by most consumers, businesses should consider offering these services to capitalize on profitable trends. Through strong strategies and the use of advanced payment technology, companies can lower overheads while boosting revenues.
Economic growth crucial
The Financial Express recently reported that electronic payments are a crucial component of economic growth in a variety of nations across the globe. Prepaid cards, mobile payments and online shopping have combined to inject more equity into merchant services and other businesses over the past several years, and this trend is expected to intensify in 2013.
The unbanked community in the United States and abroad has thus far been the biggest adopters of such services, especially mobile payments, as smartphone and tablet purchases continue to increase. As these households are now believed to make up roughly 28 percent of the population, they represent a massive opportunity for stronger revenues for many different businesses.
According to the news provider, electronic payments are becoming much more popular and profitable because of the rapid expansion of the telecommunications industry, with many new devices and software catering to the needs of merchants and consumers. Still, businesses need to formulate targeted and comprehensive strategies to make the most of prepaid card popularity, as well as that of the mobile payments trend.
Finally, the Financial Express recommended governments create policies that encourage more widespread use of mobile payments, prepaid cards and other electronic or alternative financial services.
Businesses that are slow to adopt the latest and most effective payment solutions might be at a competitive disadvantage in the coming years, as experts believe the global population is moving toward a cashless landscape. Even government agencies are beginning to use electronic payments as the preferred transaction method, including for parking payments.
By adopting the associated technology early on, merchants can position themselves better to capitalize on what is expected to be continuous growth of mobile payments and prepaid cards in the next several decades.