Wednesday, February 13, 2013

Mobile Payments: A Technology On the Rise

This article was written by Andrew G. Rosen.

Do you remember what a big deal it was when stores started switching to scanners? Most people could hardly believe that society had advanced to a time where the cashier no longer had to manually punch in numbers. Well, just when you thought that checking out couldn’t get any easier, mobile payments have come along. This is a trend that is sweeping in strong and fast, and if you don’t get onboard, you may find yourself left behind or overshadowed by your competition that is already offering this option.

Everything today seems too revolved around convenience. No one wants to have to call and talk to a real person, nor do they want to go home to use a computer when the internet is in the palm of their hands on their smartphone. Therefore, it only makes sense that when given the option to wait in line and pay a person or utilize their phone and get out the door faster, you can guess which will be the preferred choice. In fact, it is expected that mobile payment transactions are going to account for approximately $300 billion in transactions for 2013.

Convenience for Consumers and Businesses
Whether you have recently opened a small business or if you have a chain of stores, you likely appreciate convenience as much as your customers do. When you have the power to accept payments without the use of a credit card terminal, it not only offers convenient, it opens up a lot of opportunities.

When you can attach a card reader to your smartphone and use a free app to process payments, it allows you to accept payments anywhere. Not only that, you can avoid the setup costs of point-of-sale systems that can traditionally be quite high.

Welcome Near Field Communications
Near Field Communications (NFC) was about a decade in the making and well worth the wait. Rather than swiping your credit card at a payment terminal, you simply need to wave your phone. This eliminates the need to even carry a wallet with credit cards or cash. This will also speed up lines. No one has to dig for their credit card they should have already had out; nearly everyone always has their phone in hand and ready do use. Some public transportation systems are already changing to RFID-enabled transit cards, which will reduce the number of paper tickets needed and the number that are littered. This is good news for the environment any way you look at it.

Looking to the Future
Many believe that mobile payments are going to ultimately replace cash and credit cards by 2020. A study conducted with 1,021 technology critics and stakeholders was done, including distinguished professors and even Google and Microsoft executives. Approximately 65 percent agreed that 2020 would be the magic year when smart device purchasing will be fully adopted.

Choosing a Mobile Payment Option
Only time will tell if the need for cash and credit cards will be eliminated, but one thing is for certain; every business, regardless of size needs to accept mobile payments to compete in today’s market.

Pinpointing your needs and comparing your options is imperative before you make your decision. Read reviews, check rates and even find out what you competition is using. The sooner you welcome mobile payments, the faster you will be able to drive incremental revenues.

About the Author
This article was submitted by freelance blogger Andrew G. Rosen. For more on online credit card processing please visit us online.