The future is contactless. It's time to embrace mobile payments in your business.

With Covid19 are we seeing the death of physical payments? We've delved into the world of Mobile Payments so that you don't have to. Learn about providers, the benefits and importantly how to embrace Mobile payments in your store.

AirPOS
AirPOS
7 min read

In previous years we have seen the rapid growth of contactless payments with providers making it easier than ever for customers to purchase goods. Although popular, we are only now, when facing a crippling pandemic beginning to see greater global adoption. We are starting to see the reopening of the economy across the UK and Ireland however with the virus still present, contactless methods of payment have become more important than ever. When considering contactless payments we often think of the chip on our current debit or credit cards however throughout this article we will we be considering the rapid growth of mobile transactions and how these may be the future of safe shopping.

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What are mobile payments

Almost everyone who has a mobile device will utilise mobile banking apps to stay on top of their payments and transactions. Understandably the next natural step is to use our devices to make payments in the physical space.

Put simply mobile transactions are regulated payments that take place digitally through your mobile device, rather than using your debit/credit cards or traditional tender.Everything from smartphones to watches enable users to make payments from their device, using "NFC" to communicate with the card readers. You can add your cards to your chosen device easily through mobile apps with one of the major providers.

Some people still remain skeptical about mobile/contactless payments, however, they are more secure than traditional magentic-stripe cards, being authenticated payments which are incredibly hard to hack.

The Growth of Mobile payments and E-Wallets

Mobile payments have become increasingly popular largely due to their convenience and the constant advancements made by providers. Mobile devices often have digital wallets allowing you to store multiple cards making it easy to switch between your options.

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In a report issued by Mordor Intelligence, it was found that mobile payments were expected to rise inexorably over the next two years to become the second most popular payment type. With an increase in mobile payment applications from the likes of Apple, Samsung, Paypal and Google, it is expected that by 2023 1.31 billion people will be conducting mobile transactions

These studies already have already brought to light some staggering results however with the outbreak of a Pandemic it is thought that these results will be even higher by 2023 with members of the public and businesses alike urged to use contactless payments.

Mobile Payment Providers

With the digital payment industry booming it's only expected that the major technology companies would be quick to jump on board. Below we have highlighted some of the most popular mobile payment providers on the market and the pros and cons of each,

Google Pay

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Pros

  • Compatable with almost all android devices across phone, tablet or watch
  • Preloaded on your device
  • Works with all major card providers
  • Incredibly secure with multi-layer security encryption

Cons

  • Needs different app for person-to-person payments

Find out more about Google pay here

Apple Pay

Apple-pay-

Pros

  • Preloaded on your device and simple to use
  • Works with all major card providers
  • Accepted by all merchant machines with contactless readers
  • Highly secure, using substitute numbers and your fingerprint
  • Transactions can work through imessage

Cons

  • Some cards are still not compatable

Find out more about Apple Pay here

PayPal

Paypal-
Pros

  • Can make payments through your bank account, not just cards
  • Free person-to-person transfers
  • One of the orginal digital payment companies with ecosystem of accounts

Cons

  • Not accepted by all merchants
  • Can be delays in transfers

Find out more about PayPal here

Samsung Pay

Samsung-
Pros

  • Compatable with several of Samsung’s latest flagship smartphones
  • Works with both conventional credit card readers and contactless, using the newer technology
  • Widely adopted

Cons

  • Not supported on older Samsung models

Find out more about Samsung pay here

Fees and Payment limits

Contactless forms of payment will not have any excess charge however, historically, for security purposes there have been limits placed on spending. These vary for each provider but usually sit at around £30-£45. With contactless cards, this limit is fixed and if you need to spend more you will need to insert your pin.

With mobile devices however you can still make a contactless payment at a higher price. Using more modern technology, you can provide other more secure forms of verification. This may be the more traditional thumb print or text message or more recently facial recognition software.

As with all payment providers however their limits with differ from each company which is even more true for international transfers. When considering different providers you will need to research each induvidually and read the fine print.

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Why you should be embracing mobile payments

More Hygenic

The attraction of a more hygienic method of payment has become more pertinent in recent months and understandably this has seen the mass adoption of contactless. We all know that physical money is unhygienic, passed from person to person every day, however this can also be said for payment terminals. Thousands of customers have entered their pin on the payment terminals and disinfecting the machines is usually an oversight.

Contactless payments are the answer to this problem, not only being more efficient but help to reduce the passing of infection from person to person. A customer can pay for an item or service keeping distant from members of staff, without touching any items at the till point.

More Efficient

Contactless payments are a much more efficient way to take payments speeding up your check out process. Not only is it quicker for customers to simply tap their device but the payments take less processing power. Realistically most customers will already be on their phones whilst standing in a queue so using that same device to pay for their items creates a much simpler flow.

Every business owner has experienced moments when customers have forgotten their pin at the checkout. This is often minor, usually a slight lapse in memory, however there are also instances in which customers will insist on checking their phone or making a call to try and remember their pin which creates major delays and frustration in busy times. By encouraging contactless payments and having the appropriate technology at your till point, you are reducing this opportunity for human error.

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This efficiency is particularly valuable in the Hospitality and food industries. With operations being so fast-paced, mobile payments allow your customers to pay for goods without waiting for a server or pre order easily for collection.

More sustainable

The further we move into the digital age, the more sustainable we become. Obviously using traditional cash-in-hand uses resources and produces a level of wastage which is not present in mobile payments. The general public are becoming more socially conscious and sustainability is a big factor for many consumers. No cash, no cards, all digital is what is making mobile transactions the future of payment technology.

How to make your business contactless

Have reminders near till points

A cheap way you can help to encourage contactless payments is through signage instore. Leading up to checkout you can have reminder signs for customers to get out their device if they are using this to pay as well as education pieces on its benefits etc. It is common that many customers will simply not use their e-wallet because they forget it exists or are unsure whether you accept this form of payment. Therefore by placing reminders you are ensuring that if they can pay through their mobile will.

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Train your staff

Mobile payments, although becoming more popular are still foreign to some and can be overlooked. Ensure your staff; those who manage your customers also understand the importance of mobile payments and how it works in your business. Many stores have loyalty cards etc and staff are trained to remember to ask for this at check out. This should be the same when discussing tender types. Rather than simply asking for cash or card it should become part of the natural dialogue to also offer mobile payment. You may find that many customers are not as educated on mobile payments, not knowing how it works or its benefits and therefore you want your staff to be able to freely discuss this option and highlight its benefits.

Ensure you have the appropriate technology

The most important thing you need to do is to ensure you have the appropriate technology to support mobile payments such as modern card readers and a comprehensive Point of Sale. Most modern Point of Sale hardware will support these kinds of payments however if you are unsure you will need to check with your provider. If your till system does not support this and you are interested in upgrading get in touch with us today and we can find the appropriate solution for your business.