Mobile Payment Solutions can be classified as mobile device based money exchange via a “mobile wallet” app. In this day and age, mobile payment solutions have become an indispensable payment method for today’s consumers who are obsessed with their phones. Needless to say, mobile payment solutions have taken the world by storm and are gradually replacing cash and coins at the point of sale in traditional cash transactions. What can business owners a part of merchant services Canada expect from mobile payment solutions in 2016? In this article, business owners can learn more about rapidly evolving technology mobile payment solutions and anticipate the positive changes it will bring to the payment industry.
History of Mobile Payment Solutions
Throughout history, money has been an essential part of human beings’ lives where we have been dependent on it to purchase and receive goods and services. The bartering system was probably the first form of a structured payment system, where humans used livestock or grains in exchange for goods, throughout the BC era. Fast track to 806, where paper money was introduced in China, while other nations transitioned to utilize jewellery. In 1913, the Federal Reserve System was created in the U.S. where gold-backed U.S. dollars were implemented.
Diners Club cards were introduced as the first form of credit cards in 1950. The purpose of a Diners Club was equivalent to a pre-paid value gift card that could be used in restaurants in the U.S. Eight years after the launch of the Diners Club, American Express and Visa was introduced. This is debatable, but the first online shopping was done at Pizza Hut in 1994 where a pizza with mushrooms was ordered via the web. By 1997, mobile commerce was launched when Coca-Cola set up vending machines that could accept payment via text message.
Below is a modern day Mobile Payment Solutions timeline:
- 1998: PayPal was founded
- 1999: Ericsson and Telnor Mobil mobile phones could be used to purchase movie tickets
- 2003: Approx. 95 million mobile users worldwide use their phone to purchase goods
- 2007: iPhone and the Android operating systems were launched
- 2008: The technology Bitcoin was invented
- 2011: Google Wallet was released
- 2014: Apple Pay was launched, followed by Android and Samsung Pay
- By 2020: It is estimated by 2017, there will be $60 billion in mobile payment sales and that 90 percent of Smartphone users will have made a mobile payment.
Mobile Payment Solutions – Trends for 2016
For the latter half of 2016, the mobile payment world will continue to evolve and improve. As the demands of consumers increase, so does the technological frontier that is mobile payment solutions. Mobile developers need to stay on top of the competition; therefore, there will always be new trends that pertain to mobile payment solutions. There are two fundamental mobile payment solutions trends that will be apparent in the latter half of 2016: the first is the constant changing behaviour of consumers, the second is the transformation of the digital landscape in the POS industry.
Regardless of the trend, exemplifying superior customer service and retaining customers is still a vital way to run a successful business. The most important factor that will entice customers to come back and buy more is positive experience. As long as customer experience is well-maintained, a change or new adoptions of mobile payment solutions will not be challenging to respond to.
Take Starbucks for example…the international coffee giant runs one of the most successful payment applications to date. Despite having certain technical challenges to improve on, customers still love the experience and convenience. All they have to do is tap their phone against their POS machines; furthermore, customers can easily load money onto their “Starbucks Mobile wallet”.
With the increasing use of wearable technologies, such as Apple Watch plus other wearable activity trackers, making payments has become easier than ever. These products are becoming more sophisticated and come equipped with embedded NFC (Near-Field Communication).
Declining in-store payments
With the onset of digitalization, customers’ expectations are elevated because they believe that any service or information they need should be available on any device at any time. With this dynamic in mind, business owners should look to optimize their web presence for mobile platforms and ensure that they are listed in the major search engines. For instance, registering your business on Google enables its appearance in the highly utilized Google Maps tool. The popularity of one-click checkout payment and the development of creative channels that make the order process so much easier make customers will feel less necessity to shop face-to-face. Digitizing your business can significantly reduce costs for renting out physical space.
Key Strategies in Mobile Payment Solutions Every Business Owner Needs to Know
Forbes magazine has outlined the following two major strategies to capitalize on when considering mobile payment solutions in 2016. MONEXgroup highly recommends business owners be mindful of these tactics as their customers may be looking for the same service and treatment.
- Use Mobile to Offer a Better Deal and Experience
Who’s doing it: Yoyo Wallet: a company that develops mobile wallets
Why they’re doing it: The idea is to go that extra mile for the customer, not just offering simple mobile wallet functionality but to extend on the relationship between the retailer and the consumer by offering a more personalized experience. For example, Yoyo Wallet partners with shops where customers will receive freebies if they accumulate a certain number of products/points.
- Use Mobile to make Transactions Easier
How it works: There are payment apps that allow users to transfer money from their own bank account to other people without withdrawing physical money.
Who’s doing it: Apps like Venmo and Popmoney
Why they’re doing it: Ability to solve customers’ everyday problems. The app makes it more convenient to handle money for these customers, and finally these apps are capable of building a large user base because people will tell their friends about the app, and more people will want to download.
Why Partner with MONEXgroup for Mobile Payment Solutions
MONEXgroup’s Mobile Checkout technology enables businesses on-the-move to grow their existing business by offering real-time payment processing services via Smartphone or Tablet. For businesses that travel to customers, the Mobile Checkout enhances daily business activities and the customer’s experience with its ease-of-use and flexibility. Merchants can use their everyday existing Smartphone devices to accept secure payments and enjoy the freedom of mobile commerce. The Mobile Checkout application supports advanced functionalities including E-mail / SMS receipts, calculation of Gratuities, and an image-based product catalog with pricing.
When partnering with the number one payment processor in Canada; MONEXgroup will increase your efficiency and quality of service and lower the related costs. Request a Cost Comparison Analysis today.