Mobile payments are a big part of the e-commerce industry, and they’re one of Web Payment Software’s specialties. But the term “mobile payments” is so broad.
In short, mobile payments are any monetary transaction that can take place on a mobile device. Examples include anything from a card-swiping device that plugs into your phone’s headphone jack, to Google wallet, to a store’s iPhone app that makes it easier to buy products. Mobile payments are growing, and they’re more than likely “the future.” But as great as mobile payments are, there are also cons. So let’s break it down a little more.
Why They’re Great:
1. The Security
If you download an app from a trustworthy company, use a secure Internet connection, and keep your phone password protected, you’re more than likely safe making mobile purchases. Do customers necessarily believe that, though? We’ll discuss that in a bit.
2. They Give Consumers More Options
Say you’re a business at a trade show. You have a mobile credit card reader. Customers can no longer say, “I can’t buy that, I only have my card.” In the same sense, if you’re a customer, you don’t need to worry about bringing cash everywhere.
3. Brand Loyalty
Mobile payment systems help build brand loyalty. Lets take a moment and flashback to the McDonald’s mobile ordering app. It’s great for McDonald’s because people download the app, and then see the McDonald’s logo every time they flip through their phone. But it’s great for McDonald’s fans as well, because they get a cool new ordering system.
Why They’re Not…(Yet)
1. User Experience
At the end of the day, many users feel that mobile payments are more trouble than they’re worth. Why download a phone app, just to purchase a product on a tiny cell phone screen, when you can simply go on your computer? Why scan a QR code to pay for something when you can just pay in cash? Think about this – you need to have your phone charged in order to pay for something / accept a payment. What if it dies?
2. They Cost Businesses Money
If you’re allowing people to swipe credit cards on your phone, you’re getting charged a transaction fee, or a monthly fee, or both. If you’ve had someone design an app to help people buy your products on the go, that costs money. The ability to accept mobile payments is not always worth the price.
3. The Trust Isn’t There Yet
Despite what I said earlier about mobile payments being safe and secure, consumer trust just isn’t there yet. There’s something about sending information through thin air from one device to another, or swiping your info into someone’s phone whom you don’t know very well. Read this article for what people in the UK think.
Are mobile payments right for your business? What do you think?