The Internet has clearly made it easier for small businesses to be successful and reach customers. Being able to start and maintain a business without the need for an expensive brick-and-mortar storefront has provided the catalyst for small businesses to grow much faster, reach customers, make a profit, and become medium-sized businesses. However, the electronic age is changing again, and now customers are moving more towards mobile devices, managing their finances and purchasing items on-the-go versus sitting at a desktop computer. As a result, check out these 3 reasons why your business needs to accept mobile payments now.
Mobile devices have become far more popular in the last three years, exploding in use throughout the population. As a result, these devices have also made it possible for owners to do far more in the way of electronic activities, similar to what they could manage on a desktop computer. Either through an Internet Web page or a mobile app, users are figuring out what works for them to manage life’s needs and wants, including buying items. A small business that relies on online customers who are also up-to-date with different technologies for revenue management can’t ignore this fact and growing trend.
Specifically, there are 3 reasons your business needs to accept mobile payments:
- Mobile users and their apps will overtake computers within a year or two. Mobile devices are extremely prevalent and the apps available for them are getting better by the month. As a result, more people are shifting their computer use to their mobile device and skipping the computer altogether. Businesses that want to retain these customers and add more of them need to be able to accept mobile payments. This can be done through website payment systems, mobile apps, and the same payment software that mobile device users access. Adding this capability to your business model now cuts down on costs when last-minute changes are needed immediately. Your business needs to accept mobile payments because eventually mobile may be the number one way people pay for goods and services. The change is happening fast.
- eCommerce is becoming more and more of a business standard like cash. There was a time when eCommerce made up a small portion of business revenue, especially for big businesses. Today, it can make up as much as half if not more for small businesses. Many small businesses realize up to 90 percent of their revenue online through electronic means. As a result, being able to accept mobile payments is simply another avenue small businesses need to offer to keep their market share of customers. With mobile payments rising over 42 percent in just the last four years, the method is here to stay and can’t be ignored. Your business needs to accept mobile payments because we live in an eCommerce world where people are on the go all the time.
- People are starting to expect that they can pay anywhere at any time with a mobile device. We are all tired of carrying around cash and dozens of credit cards everywhere we go. We want “easy” and “convenient” when it comes to just about everything. By accepting mobile payments from your customers, you are helping people achieve this.
In addition, society is thinking in a very “mobile context” now. For example, consumers are using mobile devices to find better pricing. Ever hear of the term “showrooming”? It occurs when a customer shows up at a retail store, examines a product, uses a mobile device to compare the price available at other stores, and then leaves to buy the product online. For retail stores this practice is almost a death-knell. To circumvent this problem, small businesses need to be present only so that their pricing and discounts are represented with the same information as online businesses. Otherwise, a small business is simply helping online businesses make sales by providing local samples without capturing any sales. Combining a mobile presence with mobile payment makes it easy for retail stores to undercut online stores, especially when shipping costs are taken into account. But if a business doesn’t play, it can’t compete, period.
There are many more reasons your business needs to accept mobile payments now, but the above three are the most critical. The retail world continues to change dramatically as new technologies become available and widespread. Small businesses like yours need to take advantage of these trends and stay on the front end of what consumers want. Doing otherwise simply means falling behind.
About the author:
Kristen Gramigna is Chief Marketing Officer for BluePay, providers of mobile payment processing for businesses. She brings more than 15 years of experience in the bankcard industry in direct sales, sales management, and marketing to the company and also serves on its Board of Directors.