The face of POS systems is gradually changing and mobile payments are increasingly being accepted by many businesses such as those that are in the restaurant or retail industry. A growing number of banks are actually starting to create apps for smartphones such as iPhones to allow cardholders to utilize their mobile devices as a viable mobile payment option.
Like how cashless transactions came on since credit cards, mobile payments are now having the same effect. While the percentages of businesses that accept mobile payments are still low, mobile pay is slated to be the preferred payment option in the near future. If you want to take advantage of the new type of payment, you should definitely jump on the mobile payment bandwagon.
What are mobile payments?
If you’ve never heard of it before and do not understand how they work, here’s a short explanation. This mode of payment works as a type of cash absent transaction and the funds from your customer’s phone secure wallet are transferred to your merchant account. You will then receive the payments from this transaction as usual from your processor. Apple is a good example and is a predominant forerunner that made the shift towards enabling mobile payment options. They were the first company to work with credit card companies and banks to establish a secure network that could facilitate mobile payments.
How do they benefit your business?
One of the benefits of mobile payments is that they are easy to adapt and they do not need a lot of pricey equipment. It has also been observed that small businesses found it easy to adopt mobile payment programs even though they lack a large infrastructure. In addition, lower processing and interchange fees is also another draw that saves businesses a neat sum of money every month on their processing statement.
Can your POS accept mobile payments and should you give it a shot?
High chances are that most modern POS systems can accept mobile payments as they are equipped with all the software and technology that’s required to make the change. However, a POS system that is more than a decade old will not be able to accept mobile payments. Secondly – yes. You should definitely try adopting mobile payment programs to keep up with its growing popularity.
While mobile payments currently take up a small percentage of sale transactions, many providers and cardholders are making the technology more sophisticated. If there is continuation in the rapid growth of this mode of payment, it should not be that surprising to see them become the dominant mode of payment within the next few years.
Before you decide to make the shift towards accepting mobile payment, it will be wise to conduct adequate market research as it is the cornerstone of any successful business plan. You will want to understand what your customers need and will like to have when they do business with you. All in all, learn and observe with an open mind then decide what’s best for your business. Remember, every business is unique and you will want to opt for a solution that will benefit you and your stakeholders in the long term.