The phrase “cash is king” is common among consumers and business owners alike. However, consumer payment preferences are changing rapidly — and mobile payments are on the rise. Will this payment method eventually dethrone cash?
Over the past few years, consumers have enjoyed the ease of tapping their smartphones when ready to checkout. In fact, mobile wallets accounted for over 25% of point-of-sale payments in 2020.
Increasingly, younger consumers are embracing mobile payments with as many as 70% of Millennials already using their phones to pay for goods and services. So, does this mean that your small business needs to accept mobile payments? Let’s take a quick look at in-person mobile and contactless payments.
(Keep getting paid: You can also learn about accepting credit cards here.)
Mobile payments are a type of contactless payment made from a mobile wallet or app instead of cash, card or check. While contactless payments were a little slow to gain traction initially, mainstream adoption is quickly picking up. The coronavirus pandemic has pushed the trend further, in large part due to the heightened public sensitivity to germs and cleanliness.
By 2025, analysts estimate that nearly 60% of the world’s population will have a mobile wallet.
Whether or not you’ve adopted contactless payments for your business, you’re probably familiar with the major players in the industry. Square, Apple Pay, Samsung Pay and Google Pay account for most of the market.
If you’re thinking about accepting contactless payments at your business, you must understand what types are available and how the technology works. Four leading technologies are available for you to use regarding contactless or mobile payments:
Any of these options can enable your small business to accept in-person contactless payments. What’s important is determining which technology is right for you and how to implement it without disrupting your existing payment solutions.
Is accepting contactless payments right for your business? Here’s a look at the benefits of implementing a mobile payment system:
Of course, no service is without downsides. Let’s take a look at a few of the cons of accepting mobile payments.
The trend toward mobile payments is only increasing, and customers may soon expect to checkout using their phones, tablets or other mobile devices. As a business owner, decisions like this will always come down to your best judgment about what works for your customers.
Payments aren’t the only thing becoming more digital. Everything from virtual meetings to shopping can all be done via mobile these days — including buying and managing insurance. That’s what NEXT Insurance does; we make it easy for small business owners to get business insurance coverage 100% online.
You can start an instant quote, share details about your business and customize options before purchasing coverage. It takes about 10 minutes, and you can access your certificate of insurance online immediately.