By Eran Feinstein.
The Benefits of Mobile Payment Processing
Businesses that accept mobile payments bank more sales. Regardless of whether your business is a brick and mortar store or online merchant, processing credit card payments is an absolute must; processing mobile payments is a competitive edge.
If you are able to process credit cards or bank transfers from any location where there is mobile service, your business will be way ahead in the game. A cell phone mobile payment service makes real time validation and payment processing a reality, and low transaction fees, online account access, and the digital transaction receipt benefits change everything.
The mobile payment industry has been on a long and arduous journey toward ubiquity with industry giants like PayPal, Google Wallet, Isis, MasterCard Pay Pass and Visa Pay Wave striving to mark the path for a cashless and card-less society. Nevertheless, market restrictions have made it challenging for some of these companies to enable widespread use across the globe. For example, Google Wallet in only available in the United States.
Perhaps somewhat surprisingly, emerging markets like the one in East Africa have been quicker to adapt to the convenience and ease of mobile transfers and mobile payment apps, perhaps because of the fact that cell phones are far more accessible than bank accounts in these areas. Whatever the reason, payment processing companies and cell phone service providers alike have been quick to jump on the opportunity, and subsequently have developed a number of excellent mobile payment processing solutions, including industry leaders like Safaricom’s MPesa and Airtel’s Mobile Bill Payment.
So How Do Mobile Payments Work?
Technology and ingenuity have come together to bring to the worldwide marketplace a plethora of exciting new solutions for mobile payment processing, regardless of whether purchases are being made in store or online. Here are a few examples:
- Email Billing and Payment Transfers
- Direct Pay
- Point of Sale (POS) Swipe
- Point Of Interaction (POI) Credit Card Scan
- Near Field Communication (NFC)
- Quick Response Codes (QR Code)
Mobile Payment Processing: What Merchants Should Look For
There are a number of criteria to look out for when searching for the perfect mobile payment solution for your business.
Pricing and Fees
Make sure you get a thorough accounting of what set up costs and processing fees you will entail in order to provide a mobile payment solution for your customers. There are often a number of fees and charges involved, including the cost of POS devices that can be integrated with your existing payment solutions. In addition to set up fees, there are sometimes monthly service charges, per transaction fees, base rates and processing rates. When you get a clear picture of the entire situation, you can make a decision about which is the best solution for your company.
Hardware & Compatibility
The majority of processing applications will work with just about any type of cell phone. Mobile card readers or “swipe” applications and NFC systems allow you to take advantage of typically lower fees that correspond to swipe transactions in comparison to keyed transactions.
Mobile Transaction Features
The ability to process mobile payments consists of more benefits than just portable payment solutions; these services also allow for additional features such as calculating sales tax, accepting tips, managing customer information thus facilitating customer relationship management, emailing receipts and more.
Safe and secure, most mobile payment processing solutions use SSL encryption to keep sensitive client information secure and customer details, banking or card information is not stored on the phone.
Although cash and credit cards still have a few years left in our wallets, smart business owners see the wave of the future and are taking advantage of new technologies and tools today.
Eran Feinstein is the founder of 3G Direct Pay Limited. 3G provides global e-commerce and online payments solutions for the travel and related industries He is a leading authority in the fields of e-commerce, travel and payments, having acquired extensive experience from various parts of the world.