Online shopping is a growing phenomenon that has seeped into the lives of every individual. So much so that the global online shopping market size grew to hit 4 trillion in 2020. Compare to the US alone, it is estimated to cross 300 million online buyers in 2023.
With more and more businesses following the trend of building their presence online. The industry is getting more competitive than ever. The competition isn’t just about which business provides the best brand experience in terms of its product or service. Also, about who has the best user experience (UI).
A vital element of any online business is its ability to provide consumers with the means to make a purchase. Hence, this can be via different payment methods (Cash on delivery, credit cards, third-party apps).
According to WorldPay Global Payment Report, the ideal payment system of international online consumers is eWallets (36%), followed by debit cards (12%) and credit cards (23%).
Let’s talk about mobile payment systems, and why it has become the main driving force behind the existing success of the e-commerce industry.
What’s the definition of a mobile payment system?
A mobile payment system allows purchasers to use their mobile gadgets to make payments. There are several mobile payment systems, including payment through mobile applications, SMS payment, and NFC payment.
Users can implement mobile payments in a different way. For online payments, buyers utilize web-based or in-app purchases. Users can select the ideal e-wallet to checkout or a specific mobile payment app. It is likely to checkout with the preferred barcode as well.
Read more “X Mobile Apps that have made our life easier“.
Mobile payment is beneficial to both online consumers and businesses. In this blog, we will talk about the benefits of mobile payment systems in the e-commerce industry.
1. High-Class Customer Service
The success of any mobile payment service isn’t its ability to process a magstripe card on your smartphone. Surprisingly, the very benefit we’re trying to explain has nothing to do with processing transactions but with experience.
We’re talking about customer service, and it involves suitability, control, and value delimited in convincing the consumer that your e-Commerce is safe and secure from any fraud. The all-in-one digital customer experience is what the entire digital shopping procedure is all about.
What’s common in Apple Pay, Google Pay, Samsung Pay, PayPal, Venmo are their ability to provide high priority customer service, sometimes within seconds.
2. Value Evolution
Let’s consider the development of mobile payment for the time being. By enabling consumers to credit cheques remotely in 2008, remote data detention technology announced a whole new level of banking and financial transactions. Since then, mobile cheques payments have become very popular. Subsequently, ERP-based banking software provides a more sophisticated mobile deposit solution, processed more than 2 billion successful transactions, and saved millions of working hours.
3. Customer Accessibility
Before the existence of EMV based payments, credit cards, or other mobile payment solutions, most of them were only cash. Customers were always looking for change money and kept maximum cash in their pockets and purses.
Nowadays, the advantages of mobile payment systems make those times a dim memory even though only a small ratio of traders have adopted mobile payment processing in their business, those who do know that one of the primary rewards is suitability, which is one of the basic need of customers and merchant’s priority.
4. Safe, Secure, and Reliable Payments
Mobile payment systems are more protected than cash or debit card payments because they utilize tokenization technology to process payments and specify the customer’s financial information through encoded detail.
Most payment gateway solutions like WP EasyPay and WooSquare Plus make sure that your information is not stored directly on the smartphone but on their cloud server, which means that malicious individuals and hackers will not attack all the specifics. Due to accessibility and improved security, mobile payment systems will become mainstream in the next few years.
5. Increase Sales & Customer Engagement
Although mobile payments can help you reduce business expenditures, they can also help increase customer engagement and business sales. According to data revealed by Nosto, in the year 2018, up to 56% of Cyber Monday or Black Friday sales in the Fashion industry initiate from mobile channels, up 6% from the past year.
Subsequently, there has been an increase in customer attraction for mobile shopping, with traffic share rising from 60.79% to 66.55% between 2018 and 2019.
This statistical data is very suitable for choosing merchants who provide mobile payment options. The reason is strong and meaningful, and when you provide multiple payment methods, especially a convenient and handy transaction, more people will utilize them. The more people use it, the more sales you got.
Mobile payment systems provide a perfect payment experience to your customers with other emerging features. The mobile payment solutions are effective for recurring payments, and it will incentivize consumers to shop again with you, which ultimately increase your sales. Accepting mobile payments will give your business a competitive advantage over companies that do not accept mobile payments, which may mean that consumers consciously select you for your next shopping.
6. Reduce Operational Expenses
Your business can help you save money in the long run, considering credit cards and mobile payments. Habitually, companies that want to accept credit card payments must capitalize on the credit card terminal machine.
Although these devices can get the job done, they are slow and expensive to maintain. Credit card terminals need to purchase ink and paper daily and need to update the system regularly, which may add up a lot in the long term. With mobile payment systems, all merchants usually require mobile readers and online payment solutions, and everything is ready! With electronically generated receipts, you no longer need to spend on daily stationery for the office.
7. Expanded Payment Methods
Generally, accepting payments online has the considerable benefit of expanding the company payment network and not just accepting cheques or cash payments.
Online payment solutions allow you to add credit cards, debit cards, and even e-checks to the list. The list of payment methods you can use through mobile payment is further extended, allowing you to receive cards, EMV based cards, and NFC or contactless payments.
Conclusion
In addition, as more choices are provided, potential customers will be more motivated to seek your services. In the latest research, 50% of clients are more likely to hire a notary accepting electronic payments and regulating electronic financial transactions. This propensity is not isolated from the legal industry; it is realistic for professionals in all service fields, including e-commerce, banking, and infrastructure. As more customers seek your services, you will attract more customers and therefore earn more revenue.
