3 Reasons to Start Accepting Mobile Payments

Consumers’ increasing dependence on mobile apps and technologies to handle everyday tasks is good news for small-business owners. Smartphones and tablets not only allow you to take advantage of cost-effective mobile search and banner ads (and use SMS to target users while they’re right around the corner), but they also make it easy and affordable for you to process credit-card transactions.

Nearly half of U.S. small businesses say they’ve budgeted for mobile marketing in 2012, a recent survey of 4,200 SMBs by Borrell Associates shows. Yet many entrepreneurs have yet to adopt a mobile payment technology. What’s stopping them — and perhaps you? Some business owners don’t fully understand the technology’s benefits to their company or consumers, whereas others subscribe to one or more popular myths about the mobile market (see infographic below).

Here are three reasons to consider adopting a mobile payment technology:

The future is now. Although U.S. consumers have been slower to demand mobile services than their counterparts in places like Japan and India, change is on the horizon — and it’s coming sooner than you may think. According to a Nielsen survey, 27 percent of smartphone owners and 28 percent of tablet owners have used their devices to make a purchase. At the 2012 D10: All Things Digital conference, venture capitalist and former Wall Street analyst Mary Meeker predicted that by 2015 American consumers’ use of mobile payments will surpass current usage in the earlier-adopting countries noted above.

Mobile is a means to capture low-hanging fruit. When U.S. consumers do come to expect mobile payments, the small businesses who accept them will reap the rewards. Portio Research projects that worldwide smartphone ownership will double by 2016 and that mobile payment purchase volume will exceed $1 trillion by the end of that year. Aside from increased market potential, small businesses equipped with the technology will recognize new opportunities to reduce costs, thanks to mobile payment plan options like “pay as go,” that are tailored to small businesses with unpredictable revenue.  A recent Intuit GoPayment study (noted in the infographic below) revealed that its users new to accepting credit cards boosted sales by more than $1,000 per month. Mobile payments can also increase business cash flow: Mobile providers issue payments for transactions in two to three days, eliminating the frustration and slow “check is in the mail” approach to invoicing and collections.

It’s a competitive advantage. As mobile-marketing intelligence deepens (based on increased consumer use of tablets, smartphones, and apps), small-business owners are challenged to compete with larger companies whose budgets and technological resources allow them to appeal to customers through cross-channel capabilities, that deliver a “buy anywhere, get anywhere” style of service that small businesses simply can’t offer. According to TrendWatching’s July 2012 Trend Briefing, “showing one’s connectedness and being in the know will be an ever-richer source of social status” to today’s consumer. Adopting mobile payment services allows small business to keep pace with such changes in consumer behavior, without requiring deep investments in technology and operations infrastructure.

Check out this infographic for more!

Myths Teaser

About Stephanie Taylor Christensen

Stephanie Taylor Christensen holds a master’s degree in marketing and has 13 years of marketing management experience for Fortune 500 companies and small businesses. She is a regular contributor to sites like ForbesWoman, Real Simple, Mint, Minyanville, and SheKnows, and writes for several private business clients. Her work is frequently syndicated and sourced by Yahoo! Finance, SFGate, TodayShow.com, and The New York Times. She is also a small business owner, having founded WellnessOnLess.com, and Om for Mom Prenatal Yoga in Columbus, Ohio. Connect with her on Twitter @WellnessOnLess.
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12 comments
Glenn Reynolds
Glenn Reynolds

Welcome to the club Gloria, I paid for a year of service just to have the system tell me it has expired 2 months later. Now they want a credit card on file to clear the payroll warning and make the year i paid for active again. You and i both know what will happen. They will charge me again for the service and i will get to spend another hour on the phone to reverse the charge. And the non English speaking support person wont send me a email confirmation stating they will not charge my account again. He would be happy to put a note on his end though. BEE ESSSSSSSS

Intuit QuickBooks
Intuit QuickBooks

Gloria, We apologize you’ve been unable to complete your payroll with our service. I have forwarded your request to our payroll department so they can look this up for you. - Drea

Gloria Miller
Gloria Miller

Aha, so when you gonna answer me. I found your charge on my credit card for 3/8/12 for payroll $422.65; so why can't I do my payroll. NO THANKS TO YOUR system. I did it by hand and paid payroll taxes due both federal and FL. SO I have issued a dispute against your charges. I WANT A COMPLETE REFUND FOR THE PAST 3 years. LOUSIEST SYSTEM I HAVE EVER EVER SEEN.

Time tracking
Time tracking

Most shops will have to incorporate mobile payments in the future as their usage is continuously on the rise.

Intuit
Intuit

@JoshuaCJohnson Thank you for sharing! It sure gets people talking about your business, don't you think? Amy K

rocco1022
rocco1022

As a mercahnt , will I still have to pay the Visa & Mastercard fee's?

Intuit
Intuit

@app_innovators Thanks for sharing this. Were there any surprises here for you? People have missed sales from me for lack of cash! Amy K

suiji
suiji

Amazing technology! Mobile phones today is used for so many transactions. And this blog just provided us enough reasons to trust and use phones in paying some transactions. Nice post!

JoshuaCJohnson
JoshuaCJohnson

@Intuit @Intuit Absolutely Amy! It was a great article. Thanks for the resource!

Trackbacks

  1. [...] are keeping Americans from making the jump to mobile payments, declares Intuit in a new infographic devoted to debunking said myths. M-payments are secure, simple to set up and altogether worth it, [...]

  2. [...] you’re missing an opportunity to make more money: A study by Intuit shows that merchants can boost sales by more than $1,000 a month simply by accepting credit cards. Set up a GoPayment account to receive the free mobile app [...]