Mobile Payments Set to Grow but Common Myths Still Abound

by | Apr 8, 2016 | Business Feature

mobileCredit card payments have been popular for many years now, and indeed the total volume of credit card transactions in the United States in 2014 came to a hefty $4 trillion, spread amongst more than 26 billion transactions.

However, while many consumers and businesses have heard about the widening availability and functionality of mobile payments (those transacted on a smartphone or other small, internet-enabled device), many haven’t yet felt comfortable with taking the leap, particularly in the U.S.

New research released recently though shows that the number of mobile payment users in America is set to double by the end of the year. In addition, the value of spending is estimated to grow to $210 billion by 2019 (up significantly from less than $9 billion in 2015). First though, it’s time for some of the most prevalent myths about mobile payments to be busted.

If you own or manage a business and are looking for a top merchant services provider that can help you set up a payment processing system, or are simply interested from a consumer’s point of view, read on for some prevailing myths and the truth behind them.

Myth: Mobile Payments Are Too Difficult or Complicated to Set Up

Many people just don’t realize how easy it is to set up a mobile payment system on a smartphone or tablet. Like most apps on the market these days, those designed for mobile payments are created to be intuitive and user-friendly so that any person with even limited computer experience can incorporate them.

In fact, set up can be done in just a few minutes, and usually requires little more than establishing a merchant account with your preferred provider; downloading that company’s app; and, if required, plugging a credit card swiper into the audio jack of your device to read each customer’s card details (alternatively, card information can also be inputted manually into most systems).

In addition, you’ll find that most mobile payment providers also have customer support available for clients, which means you can contact them for help if you do happen to need assistance during the set up stage, or with a transaction at a later date.

Myth: Mobile Payments Aren’t Worth the Hassle

Similarly, many people also believe that providing a mobile payment option for customers won’t generate enough sales to be worth the hassle. This is usually incredibly far from the truth. Being able to incorporate mobile payments into your business will give you greater flexibility in how and where you reach customers, as you won’t have to be tied to a cash register or e-commerce site to complete a sale.

For example, you can allow clients to spend money with you when you showcase wares at a tradeshow, conference, festival, pop-up store, in-home display, launch, remote site, or any other occasion or event. Taking mobile payments can also help you to cut back the time that customers have to wait in line at a checkout (which can often result in lost sales).

Furthermore, many mobile payment systems also happen to deliver much more for businesses than simply a way to expand payment choices. They typically have other features built in, such as the ability to run loyalty programs that reward customers for repeat business and the latest technology that can track and log the numbers of sales and total revenue.

Myth: Mobile Payments Are Too Costly

Another common myth about mobile payments is that they are very expensive. However, this is simply not true, and in fact you will often find that setting up a mobile payment system is far cheaper than opting for a wired point-of-sale (POS) terminal.

Although fees vary from provider to provider, most mobile-payment organizations charge a simple fee that is a set percentage of each transaction. Many companies don’t charge users any set-up or cancellation fees; and many will also provide you with the small dongle that you plug into your smartphone or tablet to read credit cards at no charge. In comparison, traditional swipe terminals that have been around for decades can easily end up costing hundreds of dollars.

Myth: Mobile Payments Are Not Secure

Many business owners or managers are reluctant to go down the mobile payment processing path because they erroneously believe that such methods are not secure. This is not the case though as, like traditional POS systems or e-commerce set-ups, customer data is not stored in a machine itself, but rather transmitted digitally.  This means that even if your company’s smartphones or tablets are lost or stolen, no credit card information or other customer details are at risk.

So long as you choose, like you would for any point-of-sale system, a reputable payment services provider, you can feel secure in accepting payments through a mobile device. When selecting a merchant services provider, make sure you opt for a reputable firm who adheres to PCI (Payment Card Industry) compliance standards, which involve strict encryption methods, amongst other things.

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