Is your business ready for the next wave of payment technologies? Ever since Apple and Android got into the mobile payments space, many consumers have been pulling out their phones rather than wallets to pay for purchases. Initially, mobile payment platforms such as Apple Pay and Samsung Pay were slow to take off due to the learning curve and need for special equipment. Since then, the technology has become more accessible, and Forrester predicts that mobile payments will reach $90 billion in the U.S. by 2017.
While traditional payments aren’t going away anytime soon, mobile payments offer crucial advantages that will change how companies conduct their business in the future:
Increased Speed
As businesses shift towards chip-based cards in an attempt to strengthen security, payment by credit card will take a little longer since chip-based cards take more time to process. One way to keep the payment process quick and neat is through mobile payments, which companies will adopt in order to save time. By accepting Android or Apple payments, you’ll shave at least a few seconds off of each transaction. It doesn’t seem like much, but if you’re running a business with hundreds of shoppers each day, that time really adds up.
More Online Sales
In 2015, U.S. ecommerce sales reached $81 billion, which makes it a booming market for companies with online stores. With Apple Pay and Samsung Pay offering their services for online shopping, more businesses will implement these systems in their ecommerce strategies in order to capitalize on the shopping trends of customers.
Improved Customer Loyalty
According to a Silverpop study, the unique open rate of emails in the U.S. is only 19%—making it all the more challenging for companies to compete with each other for more views. In order to personalize the shopping experience, businesses will integrate customer loyalty programs with mobile payments to encourage more sales. If you already have one in place, you can offer special deals, points, or gift cards through the Apple Pay or Samsung Pay apps. And by using Customer Insights, you’ll have a better understanding of how best to tailor your discounts and deals to your target audience’s interests.
Better Security
In the wake of major credit card hacks, people are looking for payment options besides credit or debit cards. Because of the added security of mobile payments (each transaction uses a unique code instead of a credit card number), it’s likely we’ll see an increase in customers using payment apps. safe, while your organization will enjoy reduced fraud losses.
Once you’ve made the initial equipment purchase, mobile payment systems are a cost effective way to boost trust with customers worried about identity theft and other digital threats. The customer can rest assure that their private information will be safe, while your organization will enjoy reduced fraud losses.
An Early Advantage
Ultimately, more and more companies will start accepting mobile payments in response to timely concerns surrounding more sophisticated data hacks and changes in shopping behavior. By adopting a mobile payment system early, you’ll have an advantage over your competitors, and if implemented correctly, you’ll establish your brand as a forward-thinking company that keeps your customers front of mind.
Photo: Pranch/Shutterstock
Dylan Lake is Demand Generation Manager for Connectivity.
