If your business has not adopted a mobile wallet strategy, you should begin incorporating one, soon. According to research by Business Insider, mobile payment volume is currently at $75 billion, and by 2020, is projected to increase to $503 billion and be used by 56 percent of consumers.
"Over time, more and more people will be accustomed to paying with their smartphone," says David Reibstein, a University of Pennsylvania marketing professor. "It is comparable to when credit cards first started. It wasn't essential but became more necessary over time."
Mobile payments through digital wallets create an easy process for merchants to sell their goods and services to customers, both online and in-store. And there are many players in the industry who want their logo on your checkout page. Currently, Paypal is the most popular digital wallet by a ratio of 3-to-1 over Amazon Pay, but Google’s and Apple’s are picking up steam.
In fact, in 2018, Google made things quite a bit easier for merchants and consumers by consolidating all of its payment options (Google Wallet, Android Pay, and several other in-app and in-browser payment methods) into a singular service: Google Pay, and industry experts predict that it will soon be a ubiquitous service.
Other options include VisaCheckout, Mastercard PayPass, Amex Express Checkout, and Samsung Pay.
Once consumers download their preferred app from Google Play or the iTunes store, the application saves the user's credit cards, debit cards, loyalty cards, gift cards, and shipping information.
Then, when a customer holds their handheld device over a store or restaurant's contactless payment terminal, a checkmark appears, and payment is made. That's it. For online purchases, customers find a product or service to purchase, and with a single click, a payment is sent, and a merchant makes a sale. After the purchase is complete, consumers see a payment confirmation on the POS terminal or computer screen and transaction details are sent to the customer's phone.
The mobile payment app providers make it easy for merchants to incorporate mobile payment processing through an application programming interface and a few lines of code. Typically, stores and restaurants can be up and running in only a few days.
Many opportunities emerge when a retailer or restaurateur offers mobile payment options. First, according to SaleCycle, the average shopping cart abandonment rate is 75.6%, but offering the simplicity of mobile payments increases sales conversion rates. Second, mobile payment optimization ensures that your tech-savvy customers have a superior (and seamless) shopping experience. There are a growing number of customers who leave their wallets at home and only shop in this manner, so don't miss an opportunity to make a sale.
"They need to be where customers are," says University of Pennsylvania marketing professor, David Bell. "They might need to be there for signaling reasons; for example, young consumers, in particular, who are used to paying via their phones … might infer that a brand that does not allow for these new payment platforms is old, outdated, irrelevant, etc."
Accepting mobile payments is becoming a necessity because it gives customers a convenient way to pay that is built into their daily routine and gives merchants an easy way to make transactions happen faster while creating a loyal customer.