What merchants need to know about mobile payments

1. Mobile Payment Adoption is On the Rise.

Paying with our phones is more than a passing fad. While Android Pay adoption numbers haven’t been revealed yet, all signs point to statistics similar to its wallet competitor, Apple Pay. In the first three days post-Apple Pay announcement, one million cards were synced to the platform.

2. They Outshine the Security Features of Magnetic Stripe Cards.

You may have read stories questioning how secure mobile payments really are. Using NFC, mobile payment services are able to put security at the top of their priority list. Unlike a magnetic stripe card, shoppers’ personal information is never in direct contact with the point-of-sale terminal. Customers must scan fingerprints or enter passwords to pay, and credit card numbers are transmitted as unique, one-time codes, keeping the real number away from potential hackers. Plus, a chip inside the payment terminal determines whether a purchase is authentic.

3. They Make the Reward Of Upgrading Your Payment Terminal Even Sweeter.

Speaking of magnetic stripe cards, the EMV liability shift deadline is approaching. Here’s some extra motivation to make the change: Upgrading to an EMV-ready terminal means retailers can accept mobile, too. With the pressure to prepare for the October 1 liability shift, upgrading your terminal now ensures your business will capitalize on both of these technologies and be ready to accommodate shoppers no matter how they want to pay. That’s two major priorities checked off your to-do list.

4. They Win at Fostering Loyalty.

Once you get a shopper into your store, the next challenge is getting them to come back. Mobile payment platforms like Apple Pay and Android Pay make that task easier because they sync with in-store loyalty programs. Once your loyalty offerings are all in one place on shoppers’ phones, there won’t be any more forgetting punch cards or coupons at home.

5. Some Say They Have Revenue-Increasing Powers.

Shoppers tend to spend more using a mobile wallet. Referencing a widely circulated study from Dun & Bradstreet that found customers spend 12 to 18 percent more using cards instead of cash, experts are now saying mobile spending will take the same path—if not exceed these numbers. That’s great news for merchants that get on board with mobile.

6. Don’t Let the Name Deceive You—Watches Can Make Mobile Payments, Too.

Mobile phones aren’t the only way to make mobile payments, anymore. Currently, the Apple Watch is leading the game, allowing wearers not only to tap their wrists and make a payment, but also to add reward cards from places like Dunkin Donuts and grocery chain Wegmans. There’s also talk of the Samsung Watch accepting mobile payments, and Android Wear may also expand its offerings later this year. Regardless of brand affinity, wearables are another way customers will expect to pay via ‘mobile.’

7. Shoppers Won’t Automatically Assume You Accept Mobile Payments.

You aren’t going to benefit from accepting mobile payments if you don’t clearly advertise that customers can tap their phones to pay before they make it to the checkout line. Be sure to clearly advertise acceptance so shoppers know it’s an option from the moment they step into your store. Once they do get to the register, be prepared to guide them through paying with their phone should they have any questions.

Does your business accept mobile payments? What convinced you to start? Send us a tweet @Cayan and let us know.