Learn about the benefits of businesses accepting mobile payment solutions.
The ability to pay using a digital wallet or complete a transaction without standing in a checkout line began as a high-tech convenience. But mobile payments are quickly becoming the standard, transforming how businesses interact with their customers and yielding benefits for both.
Consider that 43% of Americans report that they use mobile payments and digital wallets via their mobile device. Moreover, by 2025 transactions involving digital wallets will represent more than half of all transaction value. And researchers anticipate that the global mobile wallet market will grow more than 27% annually through 2030.
For small businesses, implementing mobile payments ensures they are meeting this growing demand. But an even better advantage is that offering mobile payments to your customers can also provide business efficiencies, security, and even added revenue.
What Are Mobile Payments?
Mobile payments refer to the use of a mobile device to process a transaction. They encompass both how customers pay for products and services and how a business accepts those payments. For instance, mobile payments include digital wallets, allowing customers to make payments via smartphones.
Banks such as Fifth Third make this easy by enabling customers to load their debit or credit card into their preferred digital wallet such as Apple Pay, Google Pay, and Samsung Pay. Fifth Third’s online and mobile banking services add even more convenience by allowing customers to monitor their transactions and even pay their bills from their mobile devices.
Mobile payments also include mobile point-of-sale (POS) systems, which allow businesses to accept payment via a phone or handheld device. With a combination of hardware and software, this technology enables employees to accept payments from anywhere. There is no need for a cash register or extended wait times to make purchases.
Benefits of Mobile Payments
Mobile payments make life easier for customers, but they’re not the only ones that benefit. Small businesses can also reap the rewards that mobile payments provide. Here are five ways that mobile payments can help your company succeed:
1. Accelerate the Checkout Process
Few things can tank sales faster than long lines and cumbersome checkout processes. Expanding the number of payment methods you accept to include mobile payments is one way to speed up your checkout process. Fifth Third’s Merchant Services help ensure that you can receive and process mobile payments more quickly and securely. Mobile POS systems add another level of efficiency, allowing employees to complete transactions on the go—whether that’s on the floor of a store or even in the field.
2. Enable Contactless Payments
Contactless payments took off during the pandemic as businesses and customers sought ways to minimize physical contacts. But their popularity shows no signs of waning even as the pandemic slows. Contactless payments accounted for $4.6 trillion in U.S. sales in 2022. That figure is expected to grow to $10 trillion by 2027 as businesses seek the benefits of contactless payments, including enhanced customer service and reduced reliance on cash.
3. Elevate Your Loyalty Program
Mobile payment technology gives businesses the opportunity to link customer rewards and incentives to their digital wallet. Many retailers are providing rewards specifically to customers who use the brand’s digital wallet to make purchases. Integrating loyalty programs with mobile payment apps can give your business unique insights into your customers, thanks to the available data and create new ways to increase customer engagement and purchases.
4. Enhance Payment Security
Mobile payments provide multiple layers of security for customers and businesses. First, digital wallets encrypt individual credit card information, meaning that customer credit card data isn’t exposed or available if a system was ever breached. These security features are usually part of the electronic payment system you select for your small business. In addition, most digital wallets also require a user passcode or facial recognition to make a purchase.
5. Improve Business Revenue
When implemented, these benefits can lead to increased revenue for businesses that accept mobile payments. They can help you retain your current customers, especially those who prefer digital wallets as their primary form of payment and those who prioritize contactless payments. It can also help attract new customers who appreciate mobile payments’ efficiency and convenience.
Increased Use of Mobile Payments
The demand for mobile payments means they’re no longer a nice-to-have for your small business. Instead, mobile payments are becoming critical to your future success. Implement mobile payments for your customers, and you’ll meet their payment needs and experience benefits that give your business a boost.