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CIO - With more than 123 million smartphone users in the United States alone (as of November 2012, according to comScore), and shopping via mobile devices growing by double digits, being able to accept credit cards via a mobile device sounds like a no-brainer. But how does it actually improvie your business? To find out, CIO.com queried mobile payment solution providers Square, PayAnywhere, PayPal and Bank of America about security, fees and which type of business stands to benefit most from deploying a mobile payment solution.
What type of business should consider using a mobile payment solution (i.e., card readers for smartphones and tablets)? Put another way, what type of business stands to benefit most from using mobile payments?
Tracy Metzger, CIO, PayAnywhere: Any business that performs a service or sells a good to people in locations other than retail stores should seriously look at mobile point of sale (mPOS) technologies like mobile credit card readers. mPOS technologies bring the cash register directly to the location where commerce needs to be transacted so that a transaction can be conveniently completed where the customer is, and not handled later in a back office.
Contractors can accept payment on job locations with a mobile payment solution.
These technologies also give businesses that have never accepted a credit card for payment the opportunity to easily and affordably begin doing so, without having to purchase or lease expensive equipment or sign up for long-term contracts. The question is which mPOS technology is right for your business, as some of these services are better suited for very small merchant operations, like garage sales, while others are designed for larger enterprises with many people in the field who need to complete transactions.
Mobile Payment Solution Benefits
What are some of the main benefits of using card readers/mobile payments?
Anuj Nayar, Senior Director of Communications, PayPal: With a mobile payment solution like PayPal Here, businesses without existing POS systems can immediately begin accepting nearly any type of payment -- cash, credit cards, checks, and, of course, PayPal. Merchants also pay lower fees (2.7 percent for swiped and PayPal transactions) and have access to their money almost instantly through their PayPal account and debit card.
Your customers can pay via their iPhones
Faryl Ury, Spokesperson, Square:One, easy credit card acceptance: A business can get up and running with Square quickly, easily and cheaply. For someone like a cab driver or jewelry maker who has never been able to accept credit cards before, Square opens up a whole new way to get paid and increase sales. Two, analytics: Traditionally, many companies, large and small, have had no way to track important sales information. Square's free analytics give our customers greater insight into their numbers so they can make better business decisions. And finally three, better relationships with customers: With Square Wallet, customers can discover local businesses, pay with their name, participate in loyalty programs, and even send gift cards. This allows businesses to develop better relationships with their clients because people spend less time focused on paying, and more time getting to know neighborhood businesses.