Mobile payments have become a go-to payment option as they have made their way into a large number of retail businesses in the past few years. The main reason for this, of course, is convenience. Technology and digitalization make paying for items with your phone easier than ever. They also offer safety — as many discovered during the Covid-19 outbreak — because they reduce the need for contact between parties of a transaction.
If you are wondering whether you should integrate mobile payments into your business or not, reading this blog might help you make a decision. Read on as we discuss more about mobile payments and tips to set them up for your retail businesses.
What exactly are mobile payments?
When you make a mobile payment, you’re using an app on an electronic device like a cell phone, smartwatch, or tablet to purchase something. Linked to credit cards, debit cards, and bank accounts, these apps have to be opened to make a payment, and the device has to be tapped on a POS or another electronic device to make the payment.
While it seems a bit iffy, it’s, in fact, a relatively much more secure way of paying for something. That’s because financial data are encrypted as information passes from the buyer to the seller. Put very simply, a secret key ensures that the bank and credit card details can only be read by the sending and receiving parties. The high level of security provided by this encryption is the main reason for its increasing popularity.
Some popular types of mobile payment
The basic digital system can be applied to different types of payment. Here are the most widely used ones:
Just as a wallet is an item that’s designed to hold bank notes, the digital version holds the currency electronically. Another form of payment app, in addition to holding credit card and bank account information, it can also store other information like shipping addresses. Payments are made by tapping the device against a POS or another device. Apple PayⓇ and Google PayⓇ are examples of mobile wallets.
Payment links are another way to pay for goods. The seller sends a link – a payment link – to the purchaser in an email, text, or on social media. The link could even be a QR code. When the buyer clicks on the link, they’re directed to a checkout page where they fill in their bank details in order to complete their part of the transaction.
Most banks today have their own payment app, which enables customers to log in to their accounts, check their statements, perform transactions, and generally keep track of their money. In addition to making it easy for account holders to manage money, these apps save them from having to physically go to their financial institution.
Why it’s a good idea for businesses to set up mobile payments
Everyone from customers to retailers to staff love these payment methods because they’re fast and reliable. They’re called contactless because all the shopper has to do is open the app and tap the phone on the POS. The cashier simply collects the receipt as it spills out and hands it to the shopper. (These can also be emailed at the time of the sale.)
We’ve already talked about the encryption that’s added to financial information as it’s passed from the shopper’s device to the seller’s POS or another device. There’s also a technique called tokenization that’s used. This replaces the payer’s credit card information with a token, putting an unbreachable wall around it. These security factors are the reasons mobile payments have been so widely adopted.
Enhanced user experience and health safety
In addition to the effortlessness of mobile payments – tap and you’re done – the safety factor it provides became apparent during the height of Covid-19. That’s because the method is contactless.
As has already been mentioned, mobile payment is increasingly becoming the way shoppers want to pay for the things they buy. Stores who provide this method are likely to create loyalty in customers who prefer the mobile method.
More on security
The encryption and tokenization that puts a wall of security around the financial information that’s passed from the buyer to the seller provides several safety measures. These are listed below with other additional safeguards:
- It’s incredibly hard for thieves to hack the information.
- Users will quickly notice if their accounts have been breached in any way, because the app tracks their spending, and that information can be checked by the app holder at any time.
- Third-party gateways that offer these apps, like PayPal, require their users to log in to their accounts before processing a payment.
- Most mobile and online payments follow strict and secure authentication processes to make sure there is no theft or loss of data during the payment.
Setting up mobile payments in your business the right way
Here are a few useful tips:
Know your business.
The size of your store and the products you sell will influence your payment methods.
Choose the right payment-service provider.
Known as PSPs, these are third-party companies like PayPal, Amazon Pay, and Stripe that facilitate the payments made to you, the retailer. They serve as an interface between the two financial institutions involved in the transaction – the buyer’s and the seller’s – and charge the retailer for each transaction they process. That’s why you have to check them all out. One thing to look into is their customer service; how helpful are they likely to be if you encounter a problem?
Get an SSL certificate.
For online retailers – or anyone who operates a website – an SSL certificate is a necessity. It gives a site authentication and embeds code that encrypts all communications. Having an SSL certificate gives your customers an assurance that both your website and their data are safe. And when they’re secure with that, they’ll have trust in you and are likely to return.
Simplify the checkout process.
If you make your customers go through too many steps or have them jump over hoops when giving you their payment, you stand a good chance of losing them. Don’t make them sign up for an account with you, just ask for their payment details and shipping address. They’ll be happier; you’ll get the sale and, maybe, a loyal customer.
Payment options have come a long way, and there are many of them to choose from. If you think you might be interested in setting up a mobile payment point at your business, you might think about getting advice from someone who specializes in the area.
Our team at Cin7 Core is a good resource for the information you need. Reach out to us, tell us about your business, and we’ll tell you everything you need to know. You can schedule a consultation with one of our experts by clicking here. We look forward to hearing from you.