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Mobile payments are on the upswing. Merchant Savvy predicts that 1 billion people will use a mobile payment app worldwide in 2020. And as of 2019, 19.1 percent of UK smartphone users have adopted mobile payment.
That prediction alone should be reason enough for small businesses to start accepting the technology. But beyond keeping your business relevant, there are a number of other key benefits to setting yourself up for accepting mobile payments. Here are six tips to help you be successful in managing mobile payment systems.
1. More foot traffic
A simplified payment platform that accepts mobile payments may increase foot traffic to your business. Many people’s ideal payment method is mobile contactless payment, due to speed, convenience, and security. And perhaps as a result, consumers may actively seek out businesses that accept the technology.
2. More sales
Not only do mobile payment users frequent mobile-payments-enabled businesses, they may spend more once they get there. Check out this guide to using cashless payments to set up the technology for your business and boost your sales.
3. More tips
Mobile payments users may be more generous with gratuity due to the ease of payment. Data from Square’s #PayFasterPortland event shows that US customers who used their NFC (near field communication) device with the Square Reader for contactless and chip tipped more than customers who used traditional magstripe cards. This data might translate to the UK, where NFC mobile payment is on the rise.
4. Improved customer experience
Waiting in slow lines is consumers’ number one frustration with shopping in stores. A key benefit of contactless payment by mobile phone is that it’s fast — far faster than both magstripe and chip cards. To complete a transaction, all customers have to do is hover their phone over the contactless card reader and voilà — it’s done. A speedy line and checkout process make for a much better customer experience.
5. Enhanced security
Protected by cryptograms and sophisticated tokenization methods, mobile payments are the most secure form of payment. Consumers can also activate fingerprint technology in most mobile payment solutions — another layer of NFC mobile payment security that protects data on lost or stolen devices. Accepting mobile payments at your business means you’re accepting the safest way for customers to pay.
6. Attract millennial customers
A Statista survey found that, in 2019, 41 percent of young millennials ages 18–26 switched to mobile payments, up from 32 percent in 2018. It also reported that 38 percent of senior millennials ages 27–37 switched to mobile payment, up from 24 percent in 2018. Businesses should take note and provide the mobile contactless payment experience that this generation will soon come to expect.
Adopting mobile payment systems, like Square’s point-of-sale system that can accept any type of mobile payment, keeps you relevant and secure, and can even boost your bottom line. Our payment solutions are designed with you in mind.