Aug 01, 2013 Dave King
For many years, credit and debit cards have been the go-to for payments at stores and online, but that could be changing in the near future. Consumers are beginning to realize the benefits that come with using mobile payment systems, which could lead to a major switch in how purchases are made.
Part of the reason mobile payment systems are poised to take off if the fact that using a smartphone to buy a product is much easier than rummaging through a wallet to find cash and change, according to Business Insider. In fact, by 2017, mobile transaction volume is projected to reach $244 billion in the United States, from $15 billion in 2012.
Mobile payment systems could benefit small businesses greatly
Larger corporations might not see a major impact from this technology, but the same can't be said for small businesses, as mobile payment systems can provide a cost-effective, easy-to-use alternative to traditional point-of-sale systems. In certain instances, all a business needs to process a transaction is a smartphone or tablet.
While owners of these companies might fear that these technologies will be difficult to use, that isn't the case. According to Firmology, a group of Girl Scouts used attachable card readers when selling cookies this year, and sold more product as a result.
Small businesses can also make the customer experience easier by using this technology. Gone are the days where people will have to keep track of their cash and credit cards in a wallet or purse because all that will be needed to make a purchase is a smart phone.
Additionally, mobile payment systems can provide customers with a sense of security. Each transaction completed using this technology requires verification, which can help make users less vulnerable to fraud and theft, the source noted.
Loyalty programs made easier using mobile technologies
Another way businesses can improve the customer experience through mobile payment systems is by creating a better loyalty program. Previously, consumers had to remember their card and swipe it at the register with the store clerk, but that will no longer be required.
With all the payment information being stored in one place (i.e. the mobile application), businesses and customers are able to track loyalty points and discounts right on their phones.