Reliable high risk credit card processing and an optimal m-commerce payment option will boost sales.
As e-commerce has continued to enjoy a fast growth rate for the past several years, there is another major player making headway into becoming just as mainstream. Mobile commerce, also known as (m-commerce), sales are flourishing thanks to consumers’ increased dependence on their mobile devices for their online shopping needs.
According to BI Intelligence, Business Insider’s premium research service, m-Commerce is expected to exceed $488 billion, about 44% of the e-Commerce share by the year 2024. The two devices leading the way in the m-Commerce surge are the tablet and the smartphone.
As a merchant, the key for you to enjoy your piece of this lucrative pie is to make sure you have a mobile app, along with a payment system that customers will find easy and safe to use.
How Is M-commerce Defined?
Before we dive into the many payment options within the m-commerce space for your business, let’s explore what, exactly, m-commerce is. M-commerce is a financial transaction that is accomplished through the use of a mobile device. It is considered a natural progression from ecommerce, which allows consumers to purchase and sell goods and services from anywhere, by using a tablet or a smartphone.
M-commerce has spawned new industries and helped others to grow, such as:
- Contactless payments and in-app payments.
- Location-based services.
- Mobile marketing, coupons, and loyalty cards.
- Mobile money transfers.
- Electronic tickets and boarding passes.
- Digital content purchases and delivery.
- Mobile banking.
Different Types of M-commerce
There are different variations of m-commerce and can be classified into 3 different types:
- Mobile Shopping – This is e-Commerce by way of a mobile device. You can shop using websites that are mobile optimized, dedicated apps, and social media platforms.
- Mobile Banking – Not dissimilar to online banking, however, certain transaction types can be prohibited on mobile devices. It requires the use of their dedicated app, however, some banks are exploring the use of chatbots and messaging apps.
- Mobile Payments – Mobile payments are a money payment made for a product or service that is carried out through a tablet or a smartphone. This same technology can be used to send money to friends or family members.
Most Popular M-Commerce Payment Options
Now that we have covered the definition of m-Commerce and its various forms, let’s explore that which will place your business on the path to m-commerce success. Let’s look at the most popular m-commerce payment options:
- PayPal: Truly the most ubiquitous payment system, PayPal is a cinch for consumers to utilize and a dependable selling option for merchants, with effortless setup and fast payments.
- Stripe: Stripe is another well-known technology company that specializes in helping people and businesses to initiate and receive payments online. Want your money asap? Not so fast, Stripe takes a whopping seven days to issue your funds, whereas PayPal only takes one full business day.
- Google Wallet: Now known as Google Pay Send, you can send or receive money with the use of a debit card or a bank account. There are no fees to use this service.
- Amazon Payments: What’s great about Amazon Pay is that customers can make their online purchases by using their existing Amazon account. It is a secure way for customers to elevate their checkout experience by not having to set up a new account or input their personal data.
- Square: As a popular “point of sale solution”, Square now takes online payments. They have numerous tools to set up your shop online, like syncing with your inventory as well as your social media.
- Skrill: This e-commerce business facilitates payments and money transfers online. They specialize in affordable international money transfers.
How Do You Choose Which M-Commerce Platform Is Best?
As a merchant, it’s beneficial to have as many choices to choose from as you experiment to find the m-commerce payment option that would best suit your business. However, without engaging in a haphazard approach of trial and error, it is also best to have some key features in mind.
It is important to consider the following features in your selected m-commerce payment option:
- Locational Reach: In order to benefit from your chosen payment gateway, it needs to be able to work in every location that you serve and where your customers reside.
- Fees: Just about all processors and payment gateways take their cut via transaction and/or commission fees. Research this carefully to ensure that you are not paying for “hidden fees”. Also, look out for any limitations on your plan. The goal is to spend for these services but not spend too much. Keep in mind that there are gateways that require a set up fee and even recurring fees in the form of subscriptions.
- Security: When it comes to using a “hosted gateway” it is easy to employ the “fix it and forget it” approach, taking for granted that this solution will just know the regulations it needs to abide by. Don’t make this mistake. Ensure that your solution is well-versed in all the regulations they are to follow. GDPR, among others, are regulations that you can’t afford to miss.
What Mobile Commerce Trends Are Saying
It is no mystery to say that mobile commerce as we know it is here to stay and businesses should no longer sit on the sidelines and simply watch the trends go by. Based on the consumer shopping information provided by Statista, here is what is happening:
- Growing Trust: An increased number of consumers are turning to m-commerce for their online shopping needs, which demonstrates an increased comfort in using the platform.
An increased number of consumers are of the “digital native” age, which means that these customers are likely to have grown up using the internet and computers.
- Quicker Checkouts: The use of digital wallets and one-page checkouts have drastically enhanced mobile conversion by 10%. Convenience is key.
- User-Friendly Sites: An increasing number of websites are now “optimized for mobile use”. Because of this, both businesses and ecommerce platforms have gone to nearly 100% “responsive site builds”. This simply means that most of these sites are easy to use on a mobile device.
Wrapping It Up
Far from being just a trend, m-commerce has solidified its place in the ecommerce sphere. Nabeena Mali of BigCommerce rightfully observed:
“…m-commerce isn’t going anywhere. It isn’t the next new trend. It is a staple of modern retail.”
If you have yet to develop an app for your business, this is your first step in getting into the game. Begin by seeking a reputable and solid software solution provider that can assist you in the design, the development, and the launch of a profitable app. This provider must be well-acquainted with all the existing payment gateways and mobile payment solutions.
Finally, do your homework and seek out those payment options that will suit your particular business. Look into their individual offerings such as the geographical locations they serve, the fees that they charge, and their ability to follow the regulations specific to your reach.
Although the growth potential for m-commerce has already been established, businesses should not rush into this space without ample preparedness. Remember that customers are looking for security, ease of use, and speed. When you keep these key features in mind and deliver, you will be set up for an increase in sales.