The Benefits of Mobile Payments for Businesses
Near Field Communication (NFC) has enabled several companies to replace cash and credit cards with smartphones. They now accomplish daily tasks like paying for every goods and service using smartphones. Mobile payments for businesses help customers to make payments very easily and efficiently. The mobile payment merchandise is obtaining momentum.
Customers need no longer carry cash, or debit and credit cards with them, as mobile payments through wallets and transfers are easy and secure. Mobile payments also rule out the need to create invoices, write cheques, or exchange coins. Hence, customers are increasingly taking an interest and turning towards mobile payments. With the advancement of technology, payment transfers are now very easy.
Statistics produced by Business Insider reveals that the mobile payment will reach $503 billion by 2020. Further, almost 75% of the transactions will turn cashless by 2025.
These are the reasons why you should adopt mobile payment methods:
Provides Convenience to the Users
The first motivation is contactless payments. For the most part, mobile payments reduce the wait times at pay up. As a result, this enhances the customer experience. It helps consumers to access more of their accounts and avoid carrying a physical wallet with cash, or a variety of cards. Once entered, all these account details will be on the smartphone, making it easier to transfer money.
A Secure Way of Payment
Mobile devices secure transactions by different means. Some use one-time passcodes instead of ATM card pin digits. Apple Pay uses tokenization to encrypt the data. When you use a payment wallet and enter your card details, it is replaced by a token and hides your real card details. This protects your payment details from any attackers and reduces the chances of fraud. In unfortunate situations, where you lose your mobile device, web apps easily freeze the data.
Keep Updated With the Latest Technology
Mobile payment methods are growing in popularity. The internet and online shopping websites allow customers to shop whatever they want at any time convenient to them. Mobile payments also allow customers to pay for their shopping whenever and wherever they choose. They don’t have to go to the shop and search for cash, or worse, run out of money.
In 2016, Visa teamed up with Honda and initiated an in-vehicle payment system. This innovation lets the driver pay for parking and gas using his mobile device. Also, there’s a collaboration between Samsung, Mastercard, and online grocery retailers to create an app that permits customers to request groceries directly from smart refrigerators. These examples are perfect benchmarks for the businesses which are looking forward to entering the online segment and embrace mobile payment.
Bookkeeping is Easier with Mobile Payment
All businesses need a financial system that makes the entry of daily transactions easy and allows smooth sharing of payment data with the accountant. With the help of mobile payment, business accounting can be notably simplified. It also reduces the bank charges, transactional fees, and enhances the cash flow process in a business.
It is common to forget making some entries in the books, which may sometimes lead to penalties. In order to avoid such mistakes, small businesses can subscribe to cloud accounting systems to record all the transactions. This makes finances easily manageable on smartphones.
Integrating mobile payment into your system, you can eliminate the need for backlog entry. You can basically save time for bookkeeping and sending digital receipts to email.
Elevates the Customer Experience
Mobile payments speed up the checkout process, thus enhancing the customer’s entire payment experience. Whether it’s buying garments or paying bills, people are more than willing to undertake a payment method that eliminates wait times. For example, during the festive holiday season when people shop in large numbers, a garment store owner can utilize mobile payments to make it more convenient for the customers.
With all these benefits offered by mobile payment, customers preferring such payments will keep increasing in the future. Hence, mobile payments for businesses are essential, since these transactions help create a better shopper experience, build trust, and improve relationships with customers.
3E Accounting with its team of qualified chartered accountants and other professionals provides business setup services for all types of enterprises in India. We are leading India business setup experts who provide solutions and advice to make your business processes smooth. We can also take care of all your business setup and accounting requirements. For further details or answers to your queries, please do not hesitate to contact us.