When it comes to mobile payments, the situation has been described as ‘a very complicated, hot mess’. Why? While the U.S. is exceptional at developing new electronic payments systems, it does not do a great job with commercializing those systems.
In the words of Retail Dive, “the market is still in its early days, and people may not be used to this mode of payment yet, but it’s starting to become clear that mobile wallet firms may need more promotional energy and perhaps more distinctive feature sets in order for their apps to stick in the minds of consumers.”
Millennials are the driving force behind mobile payments. They are known for mainly using their phones for researching and using mobile for the purchase process. As of late, public attention has mainly been focused on POS solutions like Apply Pay and Samsung Pay. However, most advancements have been in the sphere of apps and mobile Web.
Despite the advancements in mobile payments, consumer adoption has suddenly stalled. A recent study from PYMNT.com and InfoScout revealed some interesting statistics and insights into the current mobile market:
- Fewer than one in 20 consumers who have one of the major mobile digital wallet apps (e.g. Apple Pay, Samsung Pay and Android Pay) actually use the app when the opportunity presents itself.
- Some consumers reported they do not like to use the mobile payment apps often because they are happy with the payment cards and cash they use now.
- Most respondents shared that security was not an issue in their lack of mobile wallet usage.
PYMNTS CEO Karen Webster says the lesson to take away “isn’t that wallets are dead, but that the providers, and innovators, really need to focus on features — or something — that will get consumers, and merchants, excited.”
The Major Benefits of Mobile Payments
Why should mobile payments matter to your business? The following are three of the top benefits of utilizing mobile payments as a small business:
- Integrate incentive programs. One of the biggest benefits is the ability to integrate loyalty and incentive programs. Gone are the days where punch cards or key ring tags were the only way to offer incentives. Now, all your customers’ information can be stored and updated each time they make a purchase with their mobile device.
- Offer credit card payments. Being a cash-only business can result in decreased sales. Consumers who were unaware will be unable to make a purchase simply because they do not have enough cash on hand. The ability to accept credit card payments through a mobile payment program can instantly increase your customer base.
- Increase checkout speed. In our world today, customers like and expect quick service – especially when paying. Mobile payments offer a considerably faster means of paying over a credit card. Customers will appreciate the speed and will be more likely to return to your business.
Where to Secure Mobile Payments for Your Business
Mobile payments play a huge role in the world of eCommerce. To keep up with mobile payment trends, merchants should find a reputable payment processing company like eMerchantBroker.com. With EMB’s new payment gateway, you will have a modern web portal interface and reports, for easy access and usage. This gateway is the most advanced, intelligent transaction routing system in the industry, and it’s here to help high risk merchants in their daily business operations. Another huge advantage of this service is the new gateway’s ability to detect gift cards and prepaid cards. A major plus for retailers!
If you would like to learn more about EMB’s mobile payment services for high-risk merchants, contact our team today.