The Benefits of Implementing Mobile Payments and mPOS Systems
In an age where texting has replaced email and video chat has replaced phone calls, it’s no surprise that many consumers are beginning to readily adopt new payment form factors, such as mobile wallets, for making payments in stores and on-the-go.
In fact, 2016 will see rapid growth in the number of consumers using their phones to pay for goods or services, according to eMarketer. This year, total mobile payment transactions are expected to reach $27 billion, and users are expected to spend an average of $720 over the course of the year. That’s up from $8.7 billion and $376, respectively in 2015. What’s more, total mobile payment sales this year will rise faster than average spend per user due to increasing consumer adoption.
“Mobile payments could bring a couple of key benefits – in particular, speed and security, which combined could enhance the overall payment experience for consumers,” said Alisa Ellis, vice president of global products and solutions at Discover. “Mobile payments are also gaining traction among consumers, so merchants that integrate mobile payments into their acceptance suite can attract tech-savvy consumers who are looking to use their mobile wallets to pay.”
Let’s take a look at the benefits that fast, seamless and secure mobile payments can bring.
Improved Customer Experience
Beyond not having to look around in a bag, backpack or briefcase for a wallet, mobile payments can make the shopping experience more enjoyable and secure in several ways.
Take loyalty programs. Instead of keeping track of multiple key tags or punch cards, consumers linked to a merchant’s app need instead just tap the app to see their purchase history and accrued rewards. Smart merchants may connect their apps to in-store beacons to display the rewards available to consumers who have collected a set number of points once they enter the store.
There’s also speed. Mobile payments are faster than some other types of payments, such as cash, especially during peak times. That can lead to happier customers more willing to give you their future business. A busy pastry shop that does the bulk of its orders in the morning would be wise to offer harried customers a way to pay for their bagel and coffee with the tap of their phones.
Finally, turning to security: If retailers accept major mobile wallets, they are tapping into the benefits of a chip-grade transaction, which combines the latest in security features with the speed of mobile payments.
“As part of a streamlined payments strategy, reducing friction for the customer with mobile wallets is just one opportunity.There are also in-app payments, enabling consumers to shop and pay on-the-go,” added Ellis. “Taking in-app payments can benefit merchants who want to create a more holistic, seamless shopping and payment experience for consumers, which can in-turn drive additional loyalty and business.”
Meet the Customer Wherever They Are
How many times have you intended to purchase an item, only to put it back on the shelf when the checkout line is too long? Or left a store without buying anything because you didn’t have extra time for a check through their inventory? Beyond taking mobile wallets at checkout or enabling in-app payments, merchants can also consider leveraging mobile point-of-sale (mPOS) systems, in which store employees can meet customers wherever they are in the store and allow them to pay for their purchases then and there.
“Mobile point-of-sale systems are used by retail staff to allow a customer to pay from wherever they are in the store,” Ellis said. “Rather than waiting in line to pay, mPOS systems allow customers to immerse further into the shopping experience and to pay quickly and easily when they’re ready. For merchants, empowering staff to help customers in different areas of the store can be an impactful way to drive a purchase.”
This article was brought to you by Discover Network. For more insights into consumer trends and the world of payments, visit Discover Network Perspectives.