With Google Wallet and Apple Pay leading the pack for mobile payment systems, it is highly likely that mobile payments will eventually become a standard point-of-sale option for most retailers. However, the adoption of mobile payments is experiencing erratic growth, attributable to the reluctance of small businesses in adopting such systems. In this blog, we examine some of the insights into this topic, the current disadvantages to SMEs and the potential advantages to both customers and businesses that have not yet been fully realised.
Why Is The Uptake So Slow?
One of the most common disadvantages cited by small businesses is the high cost of implementation. Additional hardware may be required by a business to implement mobile payment systems. This can be a problem, especially for smaller businesses with tighter budgets.
It is arguable that many of the benefits of mobile payments to retailers and restaurants (speeding up transaction/ POS times) won’t always translate to smaller businesses. Wait times in smaller retail outlets may often not be lengthy enough to warrant a huge investment in top-of-the-line mobile payment systems.
These disadvantages suggest that small businesses and mobile payment service providers alike need to create unique solutions that offer specific advantages to the business, tailored to their offering and ultimately enhancing the customer experience.
Should Businesses Make A Change?
Starbucks is a superb example of a business that utilized mobile payments in a way that actually added value to the customer’s overall experience. By embedding their loyalty program into their mobile payment system, they have actually managed to increase the average amount spent by customers.
Many restaurants have also implemented location-based discounts. Managers have the ability to make a special offer for a limited time to anyone near their restaurant, which can help draw in customers during days when business is slow.
From the consumer perspective, mobile payments increase the security of transactions. mPOS (Mobile Point of Sale) devices require a connection from a tablet or Smartphone and a PIN code. This adds an extra layer of security to the transaction, which UK surveys have suggested is important to customers for transactions over £100.
Another major advantage is that mobile payment systems can help small businesses gather intelligence on consumer buying patterns, acting as a continuously updated and unique database for the business.
What Should Be Done?
Research has shown that around 87% of small businesses do not accept NFC (Near Field Communications) based mobile payments. With mobile payments predicted to dramatically increase in popularity, it is concerning that small businesses are slow to adopt the trend.
We have seen that successful implementation of mobile payment involves coupling the system with a unique offering to customers. Many small businesses will hopefully understand the potential for mobile payments to enable enhanced transactions that add value to the customer experience.
With mobile payments becoming increasingly main stream, it is probable that the cost associated with implementation will reduce over time. With this in mind, entrepreneurs may finally see mobile payments as an opportunity to help their business, instead of harming it.
Instead of adopting a mobile payments system straight away, small businesses should evaluate their own online presence and see if they are in fact capable of serving their customers well, if they arrive via mobile devices. Does your site support mobile devices? Does it support tablet devices or larger screen phones? Siteonmobi is a simple solution that can get you set up and selling via your own online store in minutes – and it responds perfectly to devices of all sizes – from large screen computers through to small feature phones.
If you would like to learn about Siteonmobi’s eCommerce features and how they can help you sell more, check out this great post.