Mobile payments are on the upswing. BI Intelligence predicts that the number of in-store mobile payments users will reach 150 million by the end of 2020, representing a whopping 56 percent of the entire consumer population that year.
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 to accept mobile payments. Here are six.
In Square’s recent consumer survey, respondents who had adopted mobile payments cited them as their ideal payment method, referencing speed, convenience, and security as their top reasons for continued usage. And perhaps as a result, these consumers reported a tendency to actively seek out businesses that accept the technology.
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2. More sales
Not only do mobile payments users frequent mobile-payments-enabled businesses, most said they’re likely to spend more once they get there.
3. More tips
Mobile payments users reported a likelihood to be more generous with gratuity. Data from Square’s #PayFasterPortland event shows that customers who used their NFC device with Square’s contactless and chip reader tipped more than customers who used traditional magstripe cards.
4. Improved customer experience
Waiting in slow lines is consumers’ number one frustration with shopping in stores. A key benefit of mobile payments is that they’re fast — far faster than both magstripe and chip cards. To complete a transaction, all customers have to do is hover their phone over the mobile payments 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 payments solutions — another layer of 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 recent Accenture survey found that 23 percent of millennials use mobile payments at least once a week. And in Square’s survey, 45 percent of those who had adopted the technology were between the ages of 18 and 34. Businesses should take note and provide the payments experience that this generation will soon come to expect.
Adopting a POS that can accept mobile payments keeps you relevant and secure, and can even boost your bottom line. Square Reader for contactless and chip is simple to set up and costs just $49.