Should I Accept Mobile Card Payments?
Posted by Ashtyn Douglas on August 12, 2014 in Business Financing [ 0 Comments ]
You do much of your business on the go. Maybe you’re a vendor at the local farmer’s market, or a musician who sells CDs after a show. Maybe you’re a taxi driver or a house cleaner and want to speed up transactions and give customers more ways to pay.
The Benefits of Mobile Payments
Whatever industry you’re in, mobile payments offer plenty of perks to help you boost your business. They increase sales, since you’re no longer limited to cash or checks. They streamline transactions, which is important if you’re trying to sell CDs to a mob of rabid fans. They also help you reach new customers, customers who don’t carry cash. In fact, 9% of people don’t carry cash on them at all, and 40% carry $20 or less. That leaves a lot of people carrying cards that you can connect with…if you accept mobile payments.
What You Need to Know About Mobile Payments
We’re seeing more players in the mobile payment space, but some of the most popular companies are:
- Square: One of the first to arrive on the scene, Square popularized the tiny card swiper that attaches to your phone. You’re charged 2.75% of each transaction, with no other fees.
- Intuit’s GoPayment: Another popular choice, especially if you use Intuit’s accounting software. GoPayment’s monthly fee is $12.95, and transaction rate is 1.75%.
- PayPal Here: In addition to using their cards in person, PayPal Here also lets people pay from their PayPal accounts. Its fee is 2.7%.
Here is how each of these services work: 1) affix the card swiper to your phone or tablet and open the associated app 2) key in the details of the transaction 3) swipe the card 4) customer signs for it using his/her finger 5) email or text the receipt to customer ~ that’s it! It’s that simple.
In fact, nowadays many brick-and-mortar locations are using mobile payment systems in lieu of the clunkier merchant card processing machines.
The Future of Mobile Payments is Here
Even though you don’t see mobile payments in every corner of the country, they’re about to take the B2B world by storm. In fact, 75% of B2B vendors have said they want to start using mobile payments by the end of 2014.
In addition to card swipers, expect to see more mobile-to-mobile payment options as this space opens up in the US (it’s already prevalent in the rest of the world).
If you’ve been on the fence about accepting mobile payments, consider whether you’d like to be paid faster, pay less for mobile payments than traditional merchant processing services, and expand your customer base. If the answer is a resounding “yes!” it’s time to look at mobile payments.
Author Bio: Jaimie Yun has more than 15 years experience across financial sectors of public accounting, corporate finance and more. She is on the advisory board of PayDemand.com, a credit card processing marketplace that allows businesses to compare multiple credit card processing rates and get the best offer while remaining anonymous to processors. Connect with Jaimie on Google+ and follow PayDemand onTwitter.
(Image via freedigitalphotos.net)