Forecasters expected consumers to spend $620 billion worldwide on mobile transactions by the end of 2016, a 37.8% increase from 2015. As mobile payments increase, these numbers will likely climb to over $3 trillion by 2024. However, there are many myths about mobile payments persist.
By understanding the facts, you can utilize mobile payment technology to its full potential and help your business grow.
Here are 6 commonly held beliefs about mobile payments, and the truth behind them.
They’re not secure
They’re too expensive
It takes too long to transfer funds
They’re too difficult to use
I accept cash; I don’t need mobile payments
They’re just a trend
Let’s get into it!
Myth #1: They’re not secure
Mobile payments use the magnetic stripe reader to encrypt credit card information. With a reputable payment processor, you will receive the same transaction security as you do when processing credit cards through your office accounting software.
Myth #2: They’re too expensive
A physical terminal can cost up to $1000. Many credit card processors offer mobile readers for free when you sign up for their services. You can typically choose between pay-as-you-go or high volume rates.
Myth #3: It takes too long to transfer funds
With most mobile payment applications, you will receive transferred funds in your account within just a few business days. Mobile payments are typically just as fast as traditional online payments.
Myth #4: They’re difficult to use
Mobile payments are easy to process. Simply establish a merchant account and download the compatible application for your Android or iOS mobile device. Due to the convenience of mobile payments, 45% of consumers have already adopted them.
Myth #5: I accept cash; I don’t need mobile payments
Cash payments are declining in frequency. 78% of consumers now prefer to make purchases with a credit or debit card. In fact, consumers spend 12-18% more when using credit cards than they do when paying cash. Mobile payments can help build your customer base and encourage consumers to purchase your products.
Myth #6: They’re just a trend
Mobile payments are growing in popularity. Within the next 5 years, they will likely generate over $3 trillion in annual revenue. 54% of American consumers have already used a mobile wallet to make a payment, and that number is only expected to increase. 61% of Americans prefer shopping at stores that accommodate contactless payment methods. 29% of businesses in the US and Canada accepted mobile wallet payment in stores in 2018, a percentage expected to double by the end of 2019.
Don’t miss out
Accepting mobile payments increases the ease of transacting with your business, at little or no additional cost to you. You might not even realize how many transactions you’re missing out on because you don’t accept your potential customer’s preferred payment method. Prepare your business for the future by implementing mobile payment acceptance.