Small businesses can benefit from mobile payment methods

Contactless payment methods, like Apple and Samsung Pay, are on the rise — with a user base that grew from 20 million in 2015 to 144 million in 2017, according to Mordor Intelligence. It isn't a surprise, thanks to the convenience and speed of having a mobile device that doubles as a wallet. Contactless transactions take almost 1/10 of the time that it takes to pay with magnetic strip technology. The relatively new systems are flourishing as they become a more widely accepted payment method. However, with the push for technological advancement, it is up to small businesses to decide how they will continue to obtain the most sales.

Consumers want to use their mobile wallets

The number of consumers using contactless payment methods when shopping in person has doubled, from 5% to 10%, in the last two years, Newsday reported. While the thought of "cash only" shops and restaurants seems like a novelty of another time — and a great inconvenience — it appears that limiting the use of contactless payment methods may put small businesses in the same vein. It was found that 17% of consumers said they would not make their purchase if they could not use their preferred payment method.

Contactless payment methods are gaining popularity.

Most modern point-of-sale (POS) systems offer advanced capabilities that include the built-in technology required to use contactless payment methods. Near Field Communication is available with most credit-card terminals that have been updated to accept EMV chip cards, Newsday stated. Customers just need to open their mobile wallet and wave their device by the contactless reader to pay for in-store purchases.

Mobile payment security concerns

Some consumers feel more secure using their smartphones, due to built-in security measures such as fingerprint and facial recognition software, according to PC Mag. The advancements in these measures of security may make Personal Identification Numbers (PIN) feel outdated or easier to hack. Of course, the digital world comes with its own security threats and the chance of a breach exists, especially with the lack of hardware-level security. As society moves toward a more digital-heavy world, there are threats of cyber-attacks that pinpoint the susceptibilities of these technologies.

Regardless if your small business is ready to take the steps toward contactless payment methods or not, experts stress the importance of having multiple payment options available. An attorney for business can be a valuable asset when expanding your business in unfamiliar technological terrain.

Categorised in: Business Law

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