The U.S. mobile payments market is expected to generate almost $190 billion in transaction value by 2021. That means you have 190 billion reasons to ensure you understand and are getting the full use of electronic payments for your business.
If 190 billion feels like is a big number to wrap your head around, you’re not alone! Let’s break down some of the ins-and-outs of mobile payments.
What’s so great about mobile payments? Among other things, they offer…
Your customers may forget their wallet at home, but they’ll never forget their phone. Mobile payments ensure your customer is never left digging around in their pockets at the register again.
- Reliable payments
Mobile payments ensure you won’t be left with a remaining intake balance at the end of the month. All transactions are confirmed on the spot.
- Electronic records of transactions
Instead of spending hours organizing receipts, mobile payment processors provide businesses with an electronic record of all transactions, saving you time (and money)!
With mobile processors, all data is protected with encryption and tokenization, so you don’t have to bear the burden of protecting sensitive financial information.
Arguably, the most important feature of mobile payments is the ability to increase customer interactions, building brand loyalty and boosting revenue. How is this possible? Three words: Customer Loyalty Programs
Customer loyalty programs are beneficial to businesses big and small – they keep consumers engaged and coming back for more. You can read more about such programs on the official MasterCard website.
Finally, there are four types of mobile payment options to be aware of when choosing what’s right for your business:
SMS Payments occurs when customers text a code to pay and it’s charged directly to their card.
Direct Mobile Payments mean a payment is charged directly on a customer’s phone bill.
Mobile Web Payments happen when a payment is charged directly to a customer’s bank account.
Contactless Payments are payments of the future, they occur when a customer places their smartphone or smartwatch near a card reader and the payment is processed automatically.