Have you ever wondered to know how the evolution of money has travelled a long way from the 6000 BC days?
From the old days of barter system to the gold coin of King Empires and paper notes of governments to plastic cards of banks, money has changed revolutionary from the ages. And today’s currency is Smartphone.
We all are going through a new age of transaction system where things have incredibly changed around us. One of them is mobile payment which has become an unavoidable part of today’s commercial world.
Customers are looking for solutions on the go; therefore, mobile payment apps have compelled businesses to adopt this rising technology.
In this blog, we will discuss why businesses should adopt mobile payment apps and show you the recent data that proves its vibrant future.
Table of Contents
Let's get started.
What is Mobile Payment?
Mobile payment is a money payment made for a product or service via a mobile device.
What is Mobile Wallet?
A mobile wallet is a mobile application that stores your credit or debit card to enable you to pay using a mobile device or smartphone. Consumers can download a mobile wallet app on their smartphone and add their payment card information that will be stored securely.
How do mobile payment works?
Mobile payment system uses NFC (Near Field Communication) which is basically a mainstream wireless technology that transmits signal from mobile device to another electronic system.
What is the current state of mobile payment apps?
Mobile payment apps come with mobile wallets and money transfers, both take place through your mobile device or smartphone. As the popularity of Google Pay and Apple Pay have touched millions of fingertips, adapting to mobile payment app is now highly important for your business.
See the below data.
World's famous mobile payment apps which are dominating on global transaction system.
Mobile wallets have existed for a long time, but the mass adoption state never came before. However, the recent revolution in digital payment all across the world has inspired over 1.7 billion people who don’t have bank account to the adoption of digital wallets.
Thus, we can see large growth in the number of mobile wallet users globally in the past few years.
Why Mobile Payment apps are growing?
Mobile wallets are helping transportation
People are using mobile payments in public transportation. Commuters in London are now able to use their smartphones to pay for train fares. Additionally, mobile payment app is extremely helpful in taxi or cab booking services which reduce the need for cash.
Alipay and WeChat Pay are dominating
According to a report by iResearch, 82% of the transactions in China have made by Alipay's 520 million users and WeChat's 200 million users. This has given a strong influence on other countries to adopt mobile payment ecosystem at the mass level.
Mobile payment is benefiting the rise of Cryptocurrency
Mobile payment apps provide great convenience to users. Therefore, it could be highly beneficial to cryptocurrency and other cyber currency in the near future. These currencies exist outside of conventional banking institutions.
So, to gain credibility, cryptocurrency users need solutions that enable them to smoothly and securely transfer funds. Here, businesses will need to embrace mobile payment apps so that they can easily use cyber currencies.
Why Your Business Should Adopt Mobile Payment Apps?
1. Most convenient option for customers
Mobile payments are the easiest mode of transaction that can be completed in a few seconds. It allows a lower wait period, hence, improves the customer experience.
Mobile payment apps have the ability to access multiple accounts which are stored safely on a mobile device. In Europe, Sweden is already on the way to make a cashless society due to the high usage of mobile wallets.
2. Provides Better Security
Mobile payment is expected to surpass debit and credit card transactions. Many mobile payment service providers understand the importance of strengthening the security of cashless payments; therefore they are offering apps with strong security features.
For example, Apple Pay utilizes a tokenization method that aimed to encrypt customer data. Other payment apps such as Google Pay, Alipay, and Samsung Pay are highly secure and reliable than using a payment card. In case the phone gets lost or stolen, the app function can easily be frozen.
3. Stay on top of emerging technology
Latest research conducted by the consulting company Bain & Co states that "customers spend twice more money by mobile payments than cash, and tend to shop long for online shopping.
Businesses and retailers who have adopted this technology will gain the maximum advantage and loyalty of valuable consumers who are using mobile payment apps.
In this way, mobile payment app is giving a new shift from card to Omnichannel system where the payment methods will grow efficiently. WhatsApp has enabled payment option for users like WeChat and other social media messaging apps.
4. Improves Accountings
When you run a business, you need an easy and strong accounting system that allows you to store pay bills, invoice customers, and share all data at one place. Integrating mobile payment app with your business can help you to achieve better cash flow management as well as maintain organized account data.
No matter you run small business like a retail store or a local shop, with the help of mobile payment apps, your business can save a lot of money and generate good results simply by:
Removing the data entry cost
Eliminating a huge backlog of invoices and receipts
Decreasing the time spent on accounting because everything stores in the system
Saving data management time as compared to using spreadsheets
Substituting paper receipts from digital receipts to easily send with emails
5. Enhance Customer Experience
People are always ready to embrace new technology. Therefore, we have seen how customers are using their mobile phones for online shopping and payment.
Customers are willing to accept a payment method that can assist them to avoid wait or unnecessary time while paying for goods and services. By offering an option to customers to pay at any time, you not only give them a convenient payment solution but also a great customer experience.
6. Improve Business Productivity
Mobile payment app can be a great tool to improve business productivity. From small to large companies, which have adopted a mobile app for payment, reported achieving better business efficiency.
Mobile app makes payment processing faster. This reduces customer handling time and increases sales per hour.
Customer payment and consumption data can be collected from the app and further used to customize promotions and discounts.
7. Create New Business
Mobile payment app has the ability to integrate into existing operations that create new revenue streams. In 2007, Safaricom, Kenya's leading mobile network operator, launched a mobile money transfer system called M-pesa. And today, this app is used by more than two-thirds of Kenyan people.
8. Enhance the value of core business
Most businesses are going digital in modern times. When you add a payment system that eases customers' effort and saves their time, it makes sense and enhances the value of your core business.
For example, a company may utilize an all-in-one mobile app solution and other payment tools to hook active users.
By doing this, it can pave the way for building a one-stop platform where other auxiliary services such as taxi booking, food ordering, or social messaging can be linked.
9. Reduce Cost
There are generally three modes of payment system available at merchant store; cash, card reader or POS machine, and payment app.
We know how society is moving to become a cashless society. On the other hand, POS machine is tough to maintain. But payment app is a digital system that can be easily maintained as well as it reduces your management cost and allows you to eliminate overhead bank charges.
The growing usage of mobile payment apps has set up a great future for both businesses and customers.
The Starbucks App, which is also known as the pioneer of in-app mobile payments, recorded about 17 million customer memberships in 2019 after introducing a dedicated mobile app for their customers. This recorded 30% growth of payment at Starbucks stores which achieved by the company's customer loyalty points program.
Therefore, mobile payment apps undoubtedly provide better payment option as they are more secure and customer-oriented system. And the way these apps are growing, they will definitely play an influential role in the future.
Over to you!
How mobile payment app has helped your business? Or what makes you feel great about using a mobile wallet than a classic wallet?
Share your views in the below comment box and let our readers know your valuable experience.