In an era dominated by technology, businesses must adapt to shifting consumer preferences, especially when it comes to payment methods. From Apple watches to Venmo, mobile payments offer a combination of convenience, safety, and security that’s unrivaled by most other payment methods.
The surge in mobile payments, driven by the decreasing use of cash, a preference for contactless transactions, and consumers’ reliance on smartphones, makes it imperative for small and medium-sized businesses (SMBs) to start embracing these solutions.
In this article we’ll explore the importance of accepting mobile payments, the methods SMBs can employ, and the future impact of mobile wallets and wearable payments.
Customer reliance on smartphones
Everything is mobile these days. With over 310 million smartphone users in the U.S. and a projected increase, businesses can tap into a vast customer base by offering mobile payment options. The convenience of using smartphones for payments aligns with the 75% of Americans who feel uneasy leaving their phones at home.
Decreasing use of cash
While cards remain a popular payment method, the use of cash has steadily dwindled over the past several decades and at an increasingly fast pace in recent years. According to the 2023 Global Payments Report, cash was the second most used POS payment method globally in 2019. It has now fallen to fourth place with only 18% of all POS value of transactions. Experts predict that this decline will continue for the foreseeable future.
Preference for contactless payments
Contactless is probably one of the biggest trends to come out of 2020 and 2021. The rise of contactless payments, particularly through mobile wallets, has now become a staple for consumers across industries. Proximity mobile spending is expected to nearly double by 2026, emphasizing the enduring preference for contactless transactions.
How SMBs accept mobile app payments
Some customers and business owners see mobile payment technology as intimidating because it’s so different from more traditional types of payments, such as cash and credit cards. However, making and accepting mobile payments on stationary or mobile POS systems is easier than many people realize, plus the benefits quickly outweigh any initial learning curve.
Advantages of accepting mobile app payments
Businesses that embrace mobile app payments gain benefits such as faster checkout speeds, enhanced security, and valuable data insights. Catering to consumer preferences not only improves customer satisfaction but also streamlines operational processes.
Businesses well-suited to mobile app payments
Is every business suited for mobile payments? The answer is: it depends on your customers! More and more businesses are starting to embrace mobile payments, and more importantly more customers across industries are starting to demand it. Mobile app payments have universal applications for SMBs across various sectors, including retail, restaurants and eCommerce. Offering diverse payment options, such as Apple Pay and Google Pay, can enhance the customer experience and satisfaction.
Future of Mobile Apps and Wallets
Rapid evolution of wearable payment devices
Wearable payment technology, such as smartwatches, fitness bands, and more, have become a popular alternative to physical cash and credit cards. SMBs can capitalize on this by enabling payments through wearable devices, enhancing convenience and efficiency for customers.
How to start accepting wearable payments
Accepting wearable payments requires minimal technological adjustments, with most businesses already equipped to handle these transactions. NFC-enabled card readers, whether stationary or portable, can seamlessly integrate wearable payments into existing systems.
Benefits of wearable payments
Wearable payments offer superior convenience, speedy checkouts, reasonable fees, and strong security. Coffee shops, food trucks, and vendors at events are examples of businesses where wearable payments can enhance the customer experience.
Future growth for wearable payments
Wearable payments are constantly growing and evolving. Some anticipated advancements in wearable payments include enhanced biometric security measures and improved battery life. The market for wearable payment devices is projected to reach $138.05 billion by 2030, signaling a bright financial future for this technology.
Conclusion
Embracing mobile payments is a strategic move for SMBs looking to stay competitive and cater to evolving consumer preferences. Whether offering mobile payments or exploring wearable technologies, businesses can enhance the customer experience, streamline operations, and stay ahead in an ever changing landscape.
