Imagine a world where pulling out a leather wallet was considered “old school” or withdrawing cash from an ATM did not exist. That world may be close than you originally thought. The new phenomenon of mobile payment programs such as Apple Pay and Google PayPal have launched in an effort to discontinue the use of traditional wallets.
Before we dive into the benefits of mobile pay a quick explanation of the two type of mobile payment is necessary. Proximity payments are payments made during the point of sale or in proximity of a recipient. This form of payment would replace cash and credit/debit card payments. Remote payments are payments made remotely (a web enabled retailer) cooperating with PayPal, credit, debit, and prepaid cards.
While credit card theft only impacts less the one percent of purchases made with plastic it is one of the biggest concerns facing consumers. The majority of thefts are low cost incidents; no one wants to be the exception that finds their hard earned money at the hand of ruthless criminals.
This is where the benefits of mobile pay begin to formulate. By using mobile payments, consumers don’t need to worry about security issues associated with carrying cash; including whether or not they have enough cash on them.
The majority of mobile payment apps will be able to integrate loyalty programs by a simple registration process. Being able to visualize history while amassing points meaning punch cards would become one less thing to keep track of. Besides the obvious simplicity of loyalty programs customers are likely to return if loyalty rewards are easily accessible, which in turn increases retention revenue.
When dealing with payment methods privacy is particularly important. Many studies have concluded that privacy concerns is among the more prevalent reasons why consumers are hesitant to fully adopt mobile payment technologies. However the immediate threat to mobile payment security is less than theft of traditional wallets, as intercepting mobile payments takes a tech savvy individual rather than your run of the mill thief.
Every customer’s least favorite part of shopping is paying, slow lines make the experience worse then it has to be. Swiping your mobile device instead of fumbling with cash is guaranteed to save a considerable amount of time at the checkout line. If consumers can expect shorter waiting in line they are more likely to return.
It is obvious that mobile payment will make traditional checkout processes fast and easily accessible. It will shorten lines, lessen credit card theft, resolve minimum credit card payments, and discontinue the all the hassles associated with cash. Mobile payment will soon take over traditional forms of pay, I advise familiarizing yourself with the process now so you aren’t struggling when the inevitable happens.