What’s in it For Retailers?
Many online and traditional retailers are installing equipment and training their employees to accept mobile payments from their customers. While a mobile payments system is a relatively new technology, processing credit card payments by mobile phone has a lot of advantages for a retailer.
Setting up a business to receive mobile payments can give a store and its’ employees the ability to instantaneously get payment from its customers no matter where the transaction takes place. While there are many other reasons for becoming familiar with mobile payments for retailers, this is the reason why many business owners decide that mobile payments make sense for their company. For example, consider a landscape business. This company, and many others like it, typically work for their customers and even supply materials, then mail their customer an invoice several days or weeks later. Not only does this create a gap of several weeks between the work and receiving payment, but it also forces the landscape business to take on risks with each customer. With mobile payments, company employees can simply take out their smartphone or tablet computer and ask for payment from the customer on the spot. If a customer wants to order extra products or services, these items can be added to the bill. After paying, the customer gets a receipt that can be printed or e-mailed to them. Furthermore, the landscape business can get the funds from the customer in its account within twenty-four hours. This means that a business can immediately pay employees or buy needed equipment or supplies with the money they receive from their work. Of course, there are other types of businesses that are benefiting from mobile payments. For example, retailers that use vending machines are finding out that using mobile payments is helping them increase their sales. By having their customers install an app on their smartphone that allows them to pay via their phone, it is possible to pay for items from a vending machine without having to scrounge for exact change. In addition, a customer can get an instant receipt for his or her purchase. Because of this, many retailers are discovering that they can make the purchase process more automated, reducing their labor costs.
What's in it for Consumers?
Retailers who operate in areas where their customers would prefer to not have to carry a wallet are discovering the benefits of mobile payments as well. Bars and nightclubs, for example, allow their customers to pay through their mobile phones so that their customers do not have to deal with cash and change throughout the night.
Customers like that they are able to view their tab without having to get the bartender’s attention and be heard through a noisy club. Other businesses, like beachfront ice cream shops, like that their customers can make an impulse purchase via their mobile phone instead of walking away from their store to find their wallet or access an ATM. Finally, many retailers like the security that mobile payments bring. By using mobile payments, many businesses have eliminated the need to deal with cash. This eliminates the need for an employee to constantly be watching a cash box, as well as the need to make bank deposits.
|