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article imageSmall businesses adopting mobile payment technology

By Tim Sandle     Aug 3, 2017 in Business
Mobile payment technology steps away from cash or credit card payments, and offers time and cost savings for small businesses. Mobile Payments Today reports that in the U.S. a quarter of the population use mobile payments above nay other payment method.
With mobile payments, this indicates payment services performed directly from or via a mobile device. As an alternative to paying with cash, check, or credit cards, a consumer uses a mobile phone to pay for a wide range of services and digital or hard goods. The technology to support such systems is becoming more widely available.
The five primary models for mobile payments are:
-Mobile wallets
-Card-based payments
-Carrier billing (such as by SMS text message)
-Contactless payments NFC (Near Field Communication)
-Direct transfers between payer and payee bank accounts in near real-time
READ MORE: New approach to digital payments and invoicing
NFC and mobile wallets
In retail, the push towards mobile payments is being driven chiefly by NFC technology and mobile wallets. Near-field communication technology works by bringing together a mobile device and a reader.
The mobile wallet is essentially the same; this is a virtual wallet that stores payment card information on a mobile device. The system allows a user to make in-store payments and it can be used at merchants who are listed with the mobile wallet service provider.
READ MORE: Why small businesses need to consider digital transformation
Expressed in terms of revenue, Business Insider's report for the end of 2016 showed mobile payment volume reached $75 billion. By the end of 2017, this is expected to have risen substantially. Apple Pay, Android Pay and Samsung Pay currently dominate the market for mobile payments.
Small businesses should consider adapting to these technologies. Smartphones are a convenient way for consumers to pay for items, reflecting consumer trends, and the payment process is relatively secure. The advantages for business are lower transaction costs, less administration and maintaining a competitive edge.
More about mobile payments, Small business, business technology
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