How many times have you tried to make a purchase only to realize you’re not carrying cash? Now think about how many times you have had to turn away a customer for incompatible payment? This might be hard to hear, but cash-only businesses are a thing of the past and here's why.
With the rise of a new kind of consumer -- the digital consumer -- your business needs to adapt and come up with new and innovative ways to attract, capture and win over this emerging consumer. And you can start by accepting mobile pay.
Unlike cash, which places restrictions on your business and limits how customers can pay, mobile pay opens the door to more customers, more payment methods, while offering both convenience and security.
What is Mobile Pay?
Mobile pay is a general term that refers to any transaction performed through a mobile device. These transactions are regulated and are 100 percent digital.
So, instead of paying with cash or credit cards, your customers can use their mobile device to pay for a wide range of services or products. Mobile pay can be done in person in real-time or online in advance depending on the transaction type and what’s being purchased.
Regardless of whether your business operates online or offline, it's clear businesses that have successfully integrated, localized, and personalized mobile pay into their payments infrastructure have benefited and gained a leg up on their competitors as a result. Is your business ready for mobile pay?
Different Types of Mobile Pay
Mobile wallets and NFC payments are the most widely known mobile payment methods, but mobile pay doesn’t stop there. Here are some of the most popular types of mobile payment methods.
Near Field Communication (NFC) payments are payments that enable the usage of mobile wallets and contactless payments. NFC payments require an NFC-enabled card reader and a mobile phone, to communicate wirelessly when they're in close proximity to each other (two inches or less). However, for this payment to work, both devices need to be equipped with the NFC chip or the transaction will not be completed.
Magnetic secure transmission (MST) payments release "magnetic" signals to establish a connection between the consumer’s mobile device and the merchant’s POS terminal. Usually, MST technology works with any NFC-ready POS terminal that accepts contactless payments, however, it is a good idea to ask and make sure because that’s not always the case.
SMS text message payments are one of the easiest and most convenient ways for customers to pay for transactions. Text-to-pay can work in a few ways. Common methods include:
One way you use text-to-pay is with a website and a code. The customer accesses the website and retrieves a code. The code is then sent to the phone number via SMS text message. Then, the customer receives an additional text that confirms the payment was successful and provides access to the service or product the customer paid for.
You can also pay by entering a mobile phone number directly onto a website: The SMS payment provider then texts this number with a code. The user then uses this code to access online content and complete the transaction.
Lastly, you can make a payment via a direct text. All the customer has to do is send a text to a specified number and then their payment is confirmed.
Benefits of Mobile Pay
The most obvious benefit of mobile pay is convenience. Long gone are the days where you have to wait for your customer to shuffle through their bag searching for their wallet or loose cash. Going digital and putting payments in the hands of consumers -- quite literally -- makes the process easier and more convenient than ever before.
Mobile pay is fast -- very fast. Regardless of what kind of mobile pay you choose to accept, the process will look something like this: The customer presents their mobile device, authenticates the transaction, and completes the transaction. And that’s it. This creates a quick and pleasant experience for consumers and helps your business streamline payments.
Mobile pay also offers complete mobility. Regardless of where your business ventures take you, you can accept payments with ease directly on your mobile phone.
Unlike many other forms of payment, mobile pay is secure. Your customers can feel confident that their sensitive information is safe and not worry about getting hacked or being the victim of fraud.
Mobile pay also allows your business to store data and track customer trends in the palm of your hand -- features that are unavailable to businesses using a traditional POS.
The bottom line? For many more reasons than listed above, accepting mobile pay helps you get more customers in the door and keep them coming back because your customers are happy with the experience you provide. Mobile pay is a win-win for both you and your customers.
What Mobile Pay Can Do For You
Before you can start having your customers use mobile pay at your business, there are a few things you have to get situated.
First, you need the necessary equipment (if required) to accept mobile payments. Your payment service provider should offer you options to choose from that work for your business. The good news is that most POS terminals are easy to set up, require little to no configuration, and don't have expensive installation costs. In fact, some mobile payments like GoSite's mPOS solution require no equipment at all.
Second, you have to have the technology to accept mobile payments. The POS terminal you choose will need to have some form of technology that allows you to accept payments. This could be an NFC reader, Bluetooth, or something as simple as downloading a mobile app.
And finally, the last step is finding a trusted payment service provider -- this is essential. Your payment service provider should work with you and your business to help establish a mobile payments strategy that will help to maximize your revenue streams, boost your sales, and help your business thrive.
Luckily, GoSite offers all the above plus more. GoSite’s all-in-one Payment processor allows you to accept payments on the go, simply with your mobile device and our app -- no additional hardware necessary. Start growing your business with GoSite’s omnichannel payment processing solution today.