The Mobile Payment Tide is Rising


Merchants beware, waiting to ride the tide of mobile payments could capsize your sustainability and can sink your business. Your reliance on traditional payment methods could be the albatross around your neck, left to drift helplessly in a sea of digital payments without a way to take a drink.

Trusting a mobile wallet, or near field communication (NFC) payment method, may initially cause apprehension to traditional retailers, however, in reality, it’s what the millennial and the upcoming generation Z demand. How does that old saying go? How customers typically get what they want…

Understanding Your Clients’ Desires

Starbucks is a great example of a company that understands and anticipates the evolving desires of its consumers. In fact, it was one of the first to jump on board with the mobile payment wave. In 2014, they were boasting over 4 million mobile payments each week. More recently, Target decided to dive in and incorporated the Target Pay alternative with its Cartwheel program, leading to 40 million downloads.

These businesses understand the three important advantages that customers appreciate when creating a purchase: speed, simplicity, and security. All three are provided by mobile payments. If you’re skeptical of this payment system, it’s time to take the plunge and enter the mobile age.

Defining Mobile Payments

Mobile payment options vary. Clients elect for methods that are online, or can utilize NFC by holding their phones near your POS system. Mobile payments remove the necessity for the existence of a card.

These apps change phones into mobile wallets. They maintain your own credit and debit card information, utilizing it if a client makes a purchase in-person or through the internet. And banks are developing their own options as well. Some apps include:

  • Apple Purchase
  • Samsung Pay
  • Android Pay
  • MasterPass
  • Square Cash
  • PayPal
What’s Great About Mobile Payments?

Based on Business Insider research, the in-store use of mobile payments will grow to $503 billion by 2020. That’s a compound annual growth rate of 80% over five years.

Consumers are getting to be a lot more reliant on mobile purchasing. Insiders predict that 150 million Americans will be using in-store mobile payments by 2020—that is more than half of the adult population. And what they need is ease, speed, and safety.


Holding a phone near a POS system may not seem faster than just swiping a card, but the simple fact that seconds are shaved off by this method which makes it worthwhile to many people. This is very true for EMV (Europay, MasterCard, and Visa) payments, which could cause a delay and might lead more people to switch to mobile options.

We live in a quick-service world. Waiting makes customers irritable. If they’re in line behind someone waiting for card processing, they could potentially exit the store.

Adopting mobile payments will enable customers that are less-than-patient to get out and in—just like they need. They’ll be instantly gratified, and you also won’t encounter the danger of losing customers because of credit card processing times.


With the desire for speed comes the need for ease. Folks are equally impatient and easily diverted. Digging through a wallet to find the right payment card, remembering PIN numbers,  and then sign on the dotted line, may be time-consuming. Sticking a phone beside a POS system, nevertheless, is a one-step process (and let’s face it, nowadays most people probably already have their phones in their hands anyway).

This is business 101. Keeping your customers happy is directly connected to your business’ longevity. Knowing your clients’ desires can ease in the checkout process should motivate you to get mobile payment processing solutions.


Given all the epic quantities of fraud and security breaches in the news nowadays, it’s no wonder that consumers are obsessed with protecting their personal data. No one wants to run the risk of having their personal information stolen, or funds used in fraudulent ways. Although there are security measures in place for credit card authentication, fraudsters can easily circumnavigate those barriers.

Mobile payments provide consumers with an added sense of security. No one else has access to their cards – or their pin numbers – because they are safely stored on their mobile devices. Some mobile wallets and apps will even require biometric verification prior to processing the transaction. That lessens a customer’s concern of having his or her phone (and thereby card information) stolen through means they can’t control.

Give Your Customers What They Want

Although you may not realize it, lots of the contemporary POS and mPOS systems are already NFC-ready (if you’d like to update for EMV, then your POS is de facto enabled). A friction-less transition to mobile payment acceptance is your goal.

When you enable your customers to make payments, your customer retention rates will skyrocket. Studies have proven that it’s 50% easier to keep current customers than acquire new ones.

Offering your clients mobile payment options can benefit your business in more ways than you realize. Being able to recognize clients via mobile options allows you to customize coupons to send promotions directly to your clients’ phones. (Additional data provided by mobile payment processing companies can further streamline your advertising and hone your merchandising.)

Taking the Plunge

Adopting payment systems that are mobile is cost-effective and surprisingly easy. NFC terminals — which are requirements for accepting several mobile payment platforms—would be your biggest cost when taking the plunge. Many of the EMV terminals you have needed to purchase already have NFC capacities, which means you might be more prepared than you understand, as stated earlier.

Training your employees requires an investment, but once you’re swimming with the likes of Starbucks and Target, you’ll see significant ROI — since accepting mobile payments can reduce your card swiping fees by roughly 10%.

Security concerns will remain a struggle, but they are being minimized by the increased availability of PIN protection, remote blocking, and one-time password options offered by big names like Gemalto, McAfee, and Symantec. And, thanks to non-bank entrants such as Amazon, Apple, and Google, the mobile payment landscape will continue to broaden.

EMV regulations may have initially been an irritant, but they could be the catalyst for faster, easier, safer payments for you and your customers.

Welcome the mobile payments tides of change – and see what treasures they bring.