Setting up your mobile for making payments is as easy as it sounds. You find a "wallet" (or use your phone's existing solution), set it up and you're ready to buy.
All your financial data is easily retrievable and accessible when you are shopping for goods and services. Now, this is obviously you as a customer’s side of the story. But what are the things you need to look out for as a business? Would mobile payments help you stay ahead of peers?
Bipinpreet Singh, CEO of MobiKwik, said "[mobile] technology is undoubtedly going to be the future of transactions."
We've been hearing that mobile is taking over for quite some time as traffic figures continually grow. It's no secret that people use their phones for everything. Singh went on to say that “mobile is here and it’s happening, it’s a question of who will emerge as a leader.”
Here are a few reasons why you as a business or vendor need to invest in mobile payments in order to stay ahead of your competition.
Related Article: Is Fingerprinting the Next Mobile Security Option?
Building Customer Loyalty
Mobile payments enable consumers and merchants to explore endless possibilities. Exclusive offers can be easily promoted through mobile technology and consumer retention via brand loyalty can be achieved more easily.
As merchants, you must realize that in order to stay competitive, you must enhance the overall customer experience. Using an NFC tag, you can simply direct the consumer towards the special promotion or deal, where the consumers can download or receive information. Moreover, you can establish trust and loyalty through a slew of promotions including coupons, sweepstakes, giveaways, and contests all through using NFC technology.
It's amazing that an entire interaction can happen within a matter of seconds and it adds high marketing value to the whole shopping experience. This ultimately results in increased purchases and strengthening of sales cycle.
Analyzing Customer Behavior
What if you had the ability to know your customers’ spending patterns? The back of mobile payment systems are built to help track shopping trends (whether seasonal or otherwise) and consumer behavior patterns.
With data of purchases being updated continuously, you will be better able to offer the right products at the right time to the right customer in the right manner. If you are a business that accepts payments in person, remember that the best wireless credit card machines for small business
will help with this as well. Another interesting aspect to consider is the profiling of each customer and its importance in taking key decisions for your businesses. Using this data point could easily transform your business strategy depending on the trends of your customer base.
Location, Location, Location!
Based on the location, smart phones can pull up information (based on the customer’s previous buying pattern) and allowing him/her to view the choices they have nearby.
Just imagine if your restaurant has slow evening, and you have the ability to advertise a two hour discount to anyone near the restaurant. This is what location features of mobile technology can do for you and your business.
Related Article: Digital Wallet: The Future of Pay, and Why You Should Care
Business Ensures Transparency & Security of Transactions
Believe it or not, mobile technology's complexity actually helps in achieving better security measure for mobile payments.
This is because bank details or cards are masked within a third-party app (mobile wallet) and information is accessed through a PIN and password protection gateways, and onto your NFC chip. Decoding the data is extremely difficult; which bring us to the question: "what if your cell phone is lost?" Well, from the customer’s point of view their bank details would never be accessed without your PIN and password.
While choosing a mobile payment company, go for the one which provides customers and business owners transparent views of all their activities.
Financial Security Against Theft
The risk of physical theft is always present, be it the wallet or cell phone. In case of theft, a credit card is easier to use at payment counters, as it only requires signature. However, with the NFC transactions for your customers are much safer. In a similar scenario, the NFC device does not allow purchases to be made without customer’s PIN code. Moreover, the chip inside the smart phone prevents unauthorized access and accidental or intentional tampering.
Related Article: Why Mobile Banking Is The Future
Increased Consumer Options
With the option of making payments through the mobile phone, customers have the benefit of NOT carrying cash at all. Your customers now don’t have to remember to carry their wallet and/or credit cards. One more payment option that is uniquely powerful and secure cannot hurt anyone can it?
And Last but Not Least: Statistics
Need another reason? Well how about the fact that it is predicted that in 2015, the volume of mobile payments in US alone will reach $214 billion up from $16 billion in 2014.