Regardless of business size or type, entrepreneurs are quickly embracing mobile payment solutions. Moreover, just like any other technologies that enable ease of doing business, mobile payment solutions come with their unique set of pros and cons. Therefore, it is advisable that entrepreneurs familiarize themselves to the upside and downside associated with these payment solutions.
In this article, I look at some of the benefits and the downside associated with mobile payment solutions. Keep reading to find out whether you should embrace cell phone payment solutions for your business.
The advantages of mobile payment solutions
1. Provides great customer convenience
The customers want to be able to subscribe to services and buy household goods from the comfort of the house. Therefore, the biggest advantage of mobile payment solutions is that they can conveniently send payments across the globe so long as the solution is accepted. Therefore, instead of having to go to the bank for a transfer note, they can send the money via Smartphones. Consider that Mobile payment solutions speed up checkout process in the case of online shopping.
2. Mobile payments solutions allow businesses to engage their customers easily
Consider that customers will use their registered mobile devices to make the payment. Therefore, the entrepreneur gets a chance to create a resourceful customers database, through which they can reach the customers in the future. For instance, you can refer to the database to identify customers who previously purchased certain goods, and target them the next time you are having an offer.
3. Reduced expenses when setting up an online payment solution
With the mobile payments solution, you do not need purchasing the point of sale equipment. All that is needed is the store’s details and the customers will send the money directly from their phones. In addition, the provider of the mobile payment solution provides the business good reporting software, easing ability to track payments.
4. Improved cash flow
The mobile payment solutions provide business owners improved cash flow. This is considered to the other online payment solutions where money is likely to be held for some period before it is available to the business owner. The mobile payment processors provide a fast checking out enabling transfer of funds to the beneficiary account. Consider that technologies like Blockchain allow instant transfer of mobile payments.
We mentioned that mobile payment solutions also present a fair set of disadvantages for business. Therefore, let us now look at some of the disadvantages related to mobile payments solutions.
1. Security concerns
We have recently heard of high-profile data breaches, and so it is easier understanding why mobile payments present a security challenge. The security challenge occurs to both the businesses and the customers transacting via the mobile payment platforms. Therefore, some parties choose to use alternative online payment solutions.
2. Cross-platform solutions not widely available
It is not easy finding a one-size-fits-all payment solution. While the mobile payments solutions share some similarities, what is acceptable on android devices might not occur automatically to the iOS users. This makes it difficult using mobile payments to pay for goods or services from different regions.
3. Slow adoption
Although customers prefer the most convenient payment solutions, the mobile payments platforms are faced with slower adoption rate compared to other payment solutions like credit cards. Therefore, a majority of users are choosing to stay in their comfort zone rather than adopt mobile payments solutions. This could also be associated with difficult to understand user terms and conditions, and lack of awareness.
Whether to adopt mobile payments solutions or not, it is entirely dependent on the user’s preferences. Therefore, check out the advantages and disadvantages we have addressed above to find out whether mobile payments solutions work for your business or simply do not.