Mobile Payment Systems are systems that benefit both consumers and businesses by letting consumers pay by mobile devices.
Mobile Payment Systems’ Advantages For Consumers:
- Convenience: It makes the payment process easier and less complicated. Now customers can make payment anywhere at anytime with their mobile devices connected with Internet. They allow customers to seamlessly purchase products or services with having to physically hand over cash or swipe a card. Consumers are eager for quick, in-and-out shopping experiences.
- Security: By using mobile payments, consumers no longer have to assume the security risks associated with cash or worry whether they have enough cash in their bulky physical wallets so that mobile payments reduce theft risks of having cash on hand. Moreover, mobile payment is a secure way to pay. Credit card information are not stored on smartphones directly but in the cloud. So no thief could extract your credit card details just by stealing your phone.
Mobile Payment Systems’ Advantages for retailers:
- Cost: One valid advantage are the lower costs of using a mobile card reader or barcode scanner than having a credit card terminal from a bank, which charges merchants with a monthly fee plus transaction fees. Mobile app owners need to pay setup costs for a terminal.
- Engagement: Offering mobile payment options to customers, both online and offline simply makes the purchase process easier for them. This can increase conversion rates and the number of returning customers. Moreover, businesses are able to speed up the checkout process and capture the business of impulse buyers who may have been less able to buy something if a traditional transaction were required.
Nowadays, more and more online shops are offering their customers to pay their order online with their mobile device using Google Wallet. It’s a win-win situation: customers can easily skip filling out annoying forms and purchase an item with only one click.
This will most likely increase conversion rates and revenue. Catching this trend of mobile era is nothing but one of the most ideal and potential choice for retailers.