Jan 07, 2014 Dave King
The days of cash and credit card payments could be a thing of the past in the next couple decades, as mobile payments penetrate the market.
Amir Wain, CEO of i2c, told PYMNTS.com that prepaid credit cards will be one of the driving forces behind mobile payment adoption. The ability to link prepaid options to a mobile application can improve transactions and loyalty programs.
"Prepaid can handle multiple types of entitlements or stores of value for mobile wallets, and it provides a platform to integrate rewards and digital offers while providing very rich data on consumer behavior," he said.
Many businesses are beginning to implement electronic payment systems and those that offer prepaid cards should consider doing the same or risk falling behind the competition. Putting such a system in place also comes with other benefits, including:
- Reduced costs: Whenever a customer swipes a credit card, businesses care charged a fee. Mobile payments often come with much lower fees, according to Bolt Insurance. Saving a few cents per swipe may not seem like a big deal, but it can add up in the long run to lead to significant savings.
- Increased speed: Processing credit cards can take some time, so businesses may be able to complete transactions quicker with mobile payments. Often, all it takes to pay for a product with a mobile phone is the click of a button. With faster transactions, companies may be able to make more money as it can increase the amount of customers that get through the line.
- Improved inventory tracking: This technology allows businesses to have better data on their inventories. With the ability to see what products people buy and when, companies can better stock items.