How mobile payment solutions are transforming small business operations
The current business landscape is so tough right now that 3 out of every 5 small businesses are destined to fail within the first three years of their launch.
Therefore, if those ventures want the best chance of flourishing, it is important they utilise tools that will give them a competitive edge.
One such tool is mobile payment solutions, which have dramatically reshaped how the little guys operate.
No longer reliant on cash or cheques, this new technology has become an integral part of many successful SME operations.
From simplifying transactions to lowering overhead costs, here are seven ways they have transformed small business operations.
1. Broadens payment options
Mobile payment systems are an attractive proposition to small businesses because they enable them to accept multiple forms of payment that go beyond traditional cash, cheques, and cards.
This includes contactless payments, which allow customers to pay for their purchases with just a quick tap of their smartphone or smartwatch on an EFTPOS terminal; mobile wallets like Apple Pay, Google Pay, and Samsung Pay; and QR Code Payments, which are ideal for businesses that do not have traditional point-of-sale (POS) terminals. All of which can seamlessly integrate with these systems.
Overall, this versatility ensures that customers are given as many options as possible to pay for what they want to buy, which ultimately boosts sales.
2. Enables remote and on-the-go transactions
For businesses operating outside a traditional storefront, such as food trucks, market stalls, or mobile service providers, mobile payment solutions such as Smartpay mobile EFTPOS have become a real game-changer.
These systems allow businesses to accept payments anytime, anywhere, which therefore ensures that no sale is missed. This means that a stall owner at a farmer’s market no longer needs to deal only in cash.
Instead, they can now accept contactless credit card payments, which helps them to appeal to a broader customer base and gives them the potential to dramatically increase their net sales.
3. Speeds up and simplifies transactions
According to a study by PYMNTS.com, over 90% of consumers will shop at a merchant again if they have had a quick and satisfying checkout experience the first time around.
Contemporary mobile payment solutions significantly help SMEs to provide this to their customers by speeding up and simplifying the process of paying for their transactions.
For businesses, this means shorter lines, faster service, less stressed staff, and happier customers. It also reduces the likelihood of human errors that might result from having to deal with cash or manual entry of prices, which could otherwise leave a negative impression.
4. Improves cash flow
Sir Richard Branson has been credited as saying, ‘never take your eyes off the cash flow because it’s the lifeblood of business’, and there is a school of thought that it is more important for SMEs than profit.
The good thing about mobile payment solutions is that banks tend to process these types of payments much faster than traditional methods.
This allows small businesses to access their funds faster and, therefore, manage their expenses in a much more efficient way than they otherwise could.
5. Lowers overhead costs
Traditionally, POS systems can be costly to set up, given that the hardware often requires extensive configuration and ongoing maintenance costs. By contrast, mobile payment solutions tend to be more cost-effective and easier to implement, with much less downtime.
For instance, a smartphone or tablet paired with a card reader can serve as a POS system, which means low initial investment for a start-up. Additionally, most mobile payment solutions update automatically, which reduces maintenance costs by eliminating the need for manual software updates or repairs.
The companies that run them also tend to have transparent transaction flat-rate transaction fees, which make it easier for businesses to budget, manage, and allocate resources to other critical areas of their operation like marketing or product development.
6. Facilitates safer payments
Mobile payment solutions tend to be extremely secure because they use advanced security measures, such as tokenisation and encryption, to protect sensitive data.
Tokenisation is a wonderful innovation that converts sensitive payment information into a unique token that is useless to hackers if intercepted, while encryption ensures that payment data is transmitted and stored very securely.
At the same time, Two-Factor Authentication (2FA) adds an extra layer of security for customers during the payment process, which helps to build trust in the SME because they know their information is secure.
7. Makes managing accounting easier
Another way mobile payments have benefitted small business operations is that it has made managing their accounts much easier.
As cashless payments can be integrated into an accounting package like Xero, MYOB, Reckon, and QuickBooks 7, they can automatically record and process your company’s financial records.
When it comes to submitting their tax returns, SMEs can save a lot of time and money in collating this information and ensure it is done so more accurately than it otherwise might be.
