Mobile payment services are becoming more and more popular. Here’s what to look for if you’re considering using a mobile payment system in your business.
Mobile payment systems combine a credit card reader that communicates with a smartphone or a tablet app to accept card payments from customers. They are designed to help businesses run more efficiently and give shoppers greater flexibility when paying for products and services.
If your small business is considering implementing a mobile payment system, it’s important to consider the benefits and challenges of the service. How exactly do they work for small businesses?
Quicker Payment Options
One of the key benefits of mobile payment services is allowing small businesses to give their customers the option of paying by credit card from anywhere. So whether you run a busy cafe or a brick-and-mortar retailer, mobile payment systems enable you to provide better and faster customer service.
They are especially helpful for mobile workers such as electricians and other tradespeople, who can collect payments on the spot rather than having to send out invoices – ensuring constant cash flow into their business.
In Australia, there are a number of different mobile payment systems on the market including Apple Pay, Square and PayPal’s Go card reader.
If you are a considering a mobile payment system, look out for extra features that come with it such as the ability to calculate sales tax, accept tips and also capture signatures directly on the device. It’s also beneficial if the device can email or text receipts to customers.
A mobile payment system can be an inexpensive point-of-sale option for small businesses, compared to a traditional system that uses a dedicated computer and runs on POS software. With traditional POS systems, small businesses can face a number of costs charged by credit card companies including interchange fees and assessments.
Meanwhile, mobile systems that use smartphone and tablet apps simplify expenses by offering a single rate. Most mobile payment system providers offer varying monthly fee structures depending on your business’s needs. Additionally, mobile POS systems don’t require contracts, so businesses can pay as they go.
Make it Compatible
While mobile payment systems are generally easy to set up and use, you must ensure your equipment is compatible with the provider before you implement the service.
To accept cards via a mobile device, ensure you have a compatible smartphone or tablet, which can be either iOS or Android. You will also need a card reader that plugs directly into the device and the accompanying app from the provider.
Right for Your Business?
If you are a small business considering adopting a mobile payment system, think about whether it’s right for your business set-up.
Mobile payment systems are best suited for small businesses that want the flexibility to be able to accept credit cards anytime and anywhere. For example, waitresses can use mobile POS systems to process payments at tables in cafes to free up busy cash registers.
A time-saving convenience for customers, they may also help your business sell more products. When looking at your own business, weigh up the need to accept credit cards wirelessly against the cost to do so. There are fees associated with mobile payments systems, so do the calculations and make sure it’s going to benefit your business before you take the plunge.
Look at nearby competitors and whether they are offering a mobile payment option – if you have a strong customer demand for mobile credit purchases, the system costs may be well worth it.