Mobile payment is also known as mobile wallet, mobile money and money transfer. It refers to the payment services that are operated under financial regulation and conducted via a mobile gadget. Consumers can utilize mobile devices for making different kinds of payments for goods and services.
When clients visit the register to pay for purchases, they can hold up mobile phones and avoid transacting with cash or credit cards. Programs for mobile payment are comparatively inexpensive and do not need sophisticated technical knowledge to be implemented. This fact has enabled many small business enterprises to quickly adopt the new transaction technology. Any business can offer mobile payment options to its clients as a way of boosting sales through a number of ways. Here are some of the advantages:
Integrating and Increasing Incentive-Oriented Programs
Ability of integrating incentive programs and loyalty into mobile payment applications is among the most crucial gains of utilizing mobile payment options. All customer information gets stored within the application each time they apply a mobile gadget to make purchases. Linking payments to points and other loyalty programs adds value to customers, which could influence them to make return visits, thereby increasing business revenue.
Offering Payment Options via Credit Card
Many small commercial entities were unable to accept payments done via credit cards in the past. This cash-exclusive transaction method often led to decreased sales as customers without hard cash were unable to purchase goods. Such an enterprise can now benefit greatly by instituting a program for mobile transaction via credit cards, an action that immediately increases the customer base and subsequently sales margins.
Tracking Customer Inventory and Trends
Small businesses struggle especially in tracking inventory and customer behaviour. Mobile payment solutions have altered this pattern by enabling automation of these processes to serve clients in a better way. Small businesses have as a consequence, gained ability of tracking products and services on sale in order to understand what their customers want. They can then use the information obtained to improve their service and meet customer demand, which automatically boosts sales margins.
Increasing Customer Check-out Speed
Customers generally enjoy prompt service, especially when making payments. They are most likely to return if this happens frequently. Making mobile payment works faster most times than paying via cash. Redeeming time can have a direct effect on business profits since the practice creates room for serving more customers within the same time period. This action can translate to significant gains especially for large businesses that attend to masses of people.
Saving Cash on Credit Card Fees
Certain mobile payment firms levy less charge per transaction than credit card companies. This affords more savings for any business entity utilizing the mobile system of transaction. Each company usually structures its payment mechanism to suit its own needs. As such, it is critical for them to check out the different programs available to determine which one works best for their business in particular.
Developing countries have deployed this form of payment in order to extend financial services to members of the community, who are termed the “under-banked” or “unbanked”. This exercise has attracted both private and public funding.