Mobile payment systems are probably the best thing to happen to small business in a generation. Are you taking advantage of the revolution?
If you are thinking, “my business is too small” or “I already have an EFTPOS machine” or “my customers aren’t that tech savvy”, then think again.
Mobile point-of-sale transactions in Australia were $7.6billion in 2014. This year they are expected to exceed 21.7billion. The revolution is coming and one of the greatest benefactors will be small business. Here’s why:
No business is too small.
No business is too small to accept credit cards these days. In the past a business needed to apply to the bank for a merchant processor account, which was administratively painful and came with a raft of fees that could be difficult to justify for a micro business. With a mobile payment system like Square or PayPal Here any business can accept credit, debit and Eftpos with little to no upfront cost and fees related only to direct sales.
Get your money immediately.
Tradesmen, gardeners, cleaners and other small service businesses have spent years doing the work, going home and processing an invoice, then waiting weeks to get paid. With a mobile payment system you can ask for payment as soon as you’ve finished the job. Now that’s good cash flow management!
Reduce purchase hesitancy.
Retailers have all experienced a situation where you get a customer interested in a product, but they perceive it will take too long to buy now. With mobile payments systems retailers can enable their floor staff to accept payment on the spot. Like it? Buy it now and you can be out the door in under a minute.
Mobile payment systems are usually less expensive than a bank merchant account. First of all you don’t need the infrastructure, so there are no long-term contracts. Secondly the transaction fees are often less than the bank fees.
Service your customer better.
Over 90% of Australians own a mobile phone, and over 71% have a smartphone. This is the world your customer inhabits. They expect to be able to get what they want on demand. Show customers that you understand their world
With a mobile payment system you don’t need to write an invoice and chase your payment. Some payment systems can even be integrated directly with your accounting system so all of your transactions are recorded automatically. That’s a lot more time available to spend with your family.
Improve your customer loyalty.
Many mobile payment providers include the ability to integrate with customer loyalty and incentive programs. Statistics show that consumers actually engage with less than half of the loyalty programs they belong to, and ease of use is one of the most important aspects influencing how consumers feel about a loyalty program. If a mobile payment system lets you get rid of cards and stamps, you will be making it easier for your customer to engage with your loyalty program.
If you are interested in investigating a mobile payment system, here are links to the leading providers in Australia:
Square: This is the leader in the US, and launched in Australia in 2015. It focuses on keeping things simple and also integrates with a wide range of complimentary apps (including Xero).
PayPal Here: This integrates with your existing PayPay account.
The banks are also developing their own mobile payment services: