In 2021, few people would argue that the days of cash are gone. Few people fumble for their wallets and count the bills today when it’s their turn at the register. But besides credit and debit cards, another way of payment has been gaining a foothold in this increasingly digitized world, which is mobile app payment.
According to Pew Research Center, today, as much as 85% of Americans own a smartphone. This percentage quickly jumps to 95% when we only look at ages between 30 and 49, and 96% when talking about 18-30 year-olds. It is no wonder, then, that there is a growing literacy when it comes to tech and few obstacles for solutions that make life easier to catch on. Mobile payment apps is exactly such a solution. It provides benefits to the parties at both ends of the transaction; here is what those benefits are.
How Does it Work?
Before we discuss the positive sides of mobile app payment, we must discuss what it actually entails. A mobile payment system basically functions as a digital wallet. By inputting your credit card information, you can use it just like you would your cards. You can have everything in one place, and when the time for payment comes, you can simply hold up your phone and be done in the blink of an eye. Some well-known mobile payment apps include Google Pay and Apple Pay.
Implementing mobile payment is less expensive than one might think, which is why this solution is available to (and already well-utilized by) many small businesses. Besides being rather easy to implement, mobile payment can also save money in the long run. Some mobile payment apps charge less in fees than credit cards do.
While technology has come a long way and is generally much more secure today than it was in its beginning days, some people may still have doubts about the safety and security of using mobile applications for their finances. Mobile payment is equipped with multiple layers of security. All the data that goes through is encrypted appropriately so you don’t have to worry. In addition, you don’t need to carry cash or worry about your credit cards falling into the wrong hands if you happen to lose your wallet. Mobile phones today use ways of authentication that make it impossible for a stranger to abuse your assets. At the same time, businesses making sales on the go don’t have to worry about storing large amounts of cash. Additional safety benefits that mobile payments offer include the fact that it’s entirely contactless. This is a significant feature to consider in this day and age.
Infographic created by Clover, a retail POS system company
It’s Fast and Streamlined
Companies constantly need to work on optimizing their services for maximum customer satisfaction. Making sure that checking out is swift is a key element in this. The speed at which payment can be completed is thus a critical issue both for companies and for consumers. Needless to say, counting cash at the register is out of the question. Credit card transactions may also take a few moments longer than most companies would like. Mobile payments, on the other hand, happen instantly, streamlining the shopping experience like few other things would.
The convenience of mobile payments cannot be denied. Not only do you, as a customer, always have access to your credit cards without actually carrying them, but you can also complete payments with minimal effort, as we just discussed. But that’s not even all. Mobile payment schemes allow you to complete cumbersome tasks much faster, with just a few taps, too. For instance, Australians can use apps like BPAY for paying bills and manage bills from multiple billers at the same time more efficiently. It provides a better overview for customers and optimized cash flow for the businesses utilizing it.
You Can Use it Anywhere
Yet another benefit of mobile app payment is the fact that it can be completed anywhere and anytime. For a customer, this may not seem like a big deal. After all, they can carry their credit cards with them with ease if they want to. However, what happens if a vendor does not accept credit cards? Most people don’t have a lot of cash on them. This used to pose a problem, especially for vendors at farmer’s markets. Not only do you have to leave with empty hands, but the vendor can lose a lot of business due to such issues. Mobile payment can solve this problem for good, for both parties involved.
It Allows for Easier Tracking
Finally, the last but certainly not the least important benefit that mobile payment offers is ease of tracking. This is a benefit that both businesses and customers will find useful. Mobile payment allows for a lot of automation. It can be connected to inventory tracking and your business will save a lot of resources. In addition, you’ll be able to keep track of customer trends with ease. At the same time, customers will be able to keep track of their finances, too. They can pair their wallet apps with their money management apps of choice and keep an eye on their spending to optimize their financial habits.
With all the benefits listed, there is no doubt that mobile payment solutions are going to continue on an upwards curve in the near future. As more and more businesses are realizing the potential of this mode of payment, soon enough, we’ll be able to use our mobile phones for checkout for most things.