Mobile payment processing is quickly developing around the world. Still there are many kinks in the system to be ironed out before consumers will trust the technology, and before many prominent businesses will invest in them. With every step in the mobile payment evolution, there are more questions that arise. Questions about consumer protections, smartphone compatibility, and overall payments integration often overshadow even the best technological steps forward. The following are a few most common mobile payments topics that are dominating the mobile payments conversation right now.
If It Isn’t Broke Why Fix It?
This isn’t just an age old saying, it also rings true for one of the main issues with mobile payments. The industry has an uphill battle to fight, as consumers are very comfortable with the ways they pay already. Even the great Apple is finding it difficult to persuade consumers to pay with Apple Pay. Somehow mobile payment companies are going to have to convince consumers that tech is better than plastic.
The Effects of Debit and Credit Interchange Rates
One of the major arguments for mobile payments over the use of debit and credit was that there would be no interchange rates. In Europe and the Asia-Pacific region the near elimination of interchange rates has all but demolished innovation talks. In the U.S. however, interchange rates are still in place so mobile payments are still a big contender.
Merchants Will Change Their Minds if They See a Consumer Demand
Currently, most merchants don’t want to undergo the changes needed to make their POS systems compatible with mobile payment systems. As long as consumers continue to choose plastic over mobile payments, they will resist changing to processes that can be expensive if consumers won’t use them anyway.
The mobile payments industry is still in its infancy. Although there have been major steps forward in the industry, mobile payment businesses will have to do some work to convince potential customers that their way is faster, cheaper, and more convenient than what they are used to. Until then, mobile payment companies will have a difficult time getting traditional payment processors to manage their merchant accounts. eMerchantBroker.com will manage your high risk merchant account with precision and skill.