3 Top Ways to Get Started with Mobile Commerce
Paying through your mobile device
The new ways that you can pay for goods and services has now gone mobile. Payment systems that have been designed for mobile devices is transforming the payments system for many small businesses.
Now while these new methods that allow you to pay with your smart phone are cool and hip, the old traditional point of sale credit card terminal is far from dead. However, more small businesses are trying out the new mobile payment ecommerce systems and they're taking off.
In 2014, US mobile commerce sales hit $5.3 billion, which was up more than 80% from the previous year according to investment firm Barclays Capital. Now while this estimate is a small fraction of the overall $2.1 trillion spent on consumer goods in 2014, the mobile ecommerce growth is only increasing.
For many retailers considering to look into mobile payment options as another way to collect payment, these options will make the most sense.
If you're looking into having a mobile payment option in your business, then consider these three steps when researching your best option.
1. Do your research
While there are several options to consider when thinking about mobile payment, a majority of small businesses will choose one of these two options. The first option, is to use your smartphone or ipad or tablet that allows for a card reader device so that you can attach it to your smartphone and simply scan the credit card to process payments.
The 2 most popular card readers for these smart phone are Square and Pay Anywhere. In addition, the large banks are getting into the market for mobile payment systems. Chase bank has a mobile processing tool called Paymentech.
The second choice is to use what's called "contactless payments" or paying without the use of a physical credit card. The way that it works is, the consumer has a virtual credit card stored online that is connected with their smartphone. Their smartphone then communicates wirelessly with a nearby terminal that allows them to pay the amount for the goods and check out fast.
A popular one is Google Wallet, which works by tapping a smartphone against a terminal that is enabled with the mobile payment system.
2. Contact your local bank
If your business already has a merchant account with your local bank, then chances are that they already have a mobile option that you could utilize. This is an easy option that allows them to add a mobile extension payment system. One example, is Chase Bank's Person-to-Person Quick Pay which lets their users send money using email or text messages. The other two big banks, Bank of America and Citibank also offer mobile payments systems for their business account holders as well.
If your bank doesn't support any mobile payment system, the the most popular 3rd party option is to go with Square. Square is free to set up and they give your the card reader and smartphone app for free. They will charge you a processing percentage of 2.75% on every transaction. Other 3rd party options include Intuit's GoPayment or Pay Anywhere, both of which offer free card readers and apps to install on your smart device.
3. Connect to your mobile device
After you've figured out which option suits you and your business the best, then next step is to get connected. You will need to integrate your smartphone with your current check out process and see how it will work overall with your check-out procedure.
Depending on what type of accounting software you use, you will want to make sure to see that 3rd party vendors will work. Square for example, will completely replace your POS as it is a stand alone app. This might or might not make sense for your current business setup.
If your business accounting runs on Quickbooks, then Intuit's GoPayment mobile tool will work seamlessly with that and has a plugin integration app. On the other hand, if you like Google Wallet then be prepared to only go with Citi Mastercard and the big Google prepaid cards as the option that works.
In conclusion, getting on board with the latest mobile payment systems is a smart decision and one that will be here to stay. While there are currently some limitations to the new paradigm of mobile pay, your customers will thank you for the speedy checkout that mobile offers.
To learn More about Comtech's Design eCommerce solutions, Call Comtech Toll Free (855) 874-5522.
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