Despite all the hype surrounding mobile payments, the industry is still expected to grow 210% in 2016 in the U.S., even with just 52% of North Americans being "extremely aware" of mobile payments, and only 18% using them regularly.
Even more disparagingly, mobile payment platforms, such as Apple Pay and Walmart Pay, haven't exactly taken the payment world by storm. Apple Pay, for example, was only used by 4.9% of eligible sales.
Why haven't consumers fully welcomed mobile payments yet?
If consumers are like me, it's most likely because they have several concerns surrounding mobile payments.
At the top of the list is security. Based on a 2015 ISACA survey of more than 900 cybersecurity professionals, nearly half (47%) stated that mobile payments are not secure. Even worse? An astounding "87% expect to see an increase in mobile payment data breaches over the next 12 months."
A couple of other concerns are not having a global standard for mobile payments and working with an infrastructure that isn't willing to change. As Jordan McKee, senior analyst at 451 Research, tells Fortune, "Most mobile wallets today are simply credit card surrogates; they're a veneer over what already exists. This provides little incentive for merchants to upgrade their infrastructure and for consumers to change entrenched payment behaviors."
The thing is, if you actually stop worrying, and take advantage of the perks that mobile payments provide, you'll probably grow fond of them - just like I did.
Mobile Payments Are Good For Business
Conveniently Send and Receive Payments
For example, by using an app like Blockchain, you can accept or send bitcoin payments to anyone in the world. This helps cut down pricey transaction fees and is relatively secure since it relies on blockchain technology.
Reduces Expenses
Since Cisco found that there are more than 7.4 billion connected mobile devices in the world, it shouldn't be a problem to connect merchants and customers to each other's smartphones.
Improves Cash Flow
Increase Conversions
You can also send customers coupons, discounts, or promotions whenever they approach your storefront through the use of beacons and sensors. Or, you could offer them rewards by joining your loyalty program. If you were using blockchain technology, you could reward your customers in points that could be redeemed at your store or any other participating partners.
Finally, you mobile customers will provide you with a ton of data that identifies their shopping habits and user behavior. With this information, you can learn their shopping preferences like when they frequently shop and what their favorite items to purchase.
More Sales Opportunities
Whether you're an eCommerce site, pop-up shop, farmer's market, or brick-and-mortar retailer, you can expand your sales opportunities since your customers will be able to make a purchase whenever they're out and about or whenever a specific item is on their mind.
Easier to Track Inventory and Manage Accounting
As for recordkeeping, you'll be able to monitor cash flow and have immediate access to digital sales or expense receipts. This gives you real-time and accurate accounting information directly onto your phone.
The Advantages of Mobile Payments as a Consumer
Speeding Up Checkouts
And, it's only gotten worse with EMV implementation. Even though swapping isn't as secure, waiting in line while the terminal reads the chip is just a waste of time. Mobile payments have completely sped this process up so that I can get back more pressing matters.
Mobile Payments Are Convenient
With mobile payments these are all problems of the past. No more lugging, losing, or forgetting money. It's all stored in a mobile wallet.
Retailers Are Loyalty Offering Rewards
As more brands embrace, you're going to see more reward opportunities just for using your smartphone.
Mobile Payments Offer Solid Security
Apple Pay, for example, uses fingerprint identity called Touch ID and tokenization to encrypt payment information for each transaction. This is more secure than traditional credit or debit cards since your payment information is never shared with the retailer's payment system.
If your mobile device is lost or stolen, your payment information is still secure because of the security measures listed above. Also, you can also remotely shutdown your device so that it can't be hacked into.
P2P Lending is Now a Breeze
There are also apps like Tilt that collects money from a group . Can you imagine never having that awkward discussion with your friends over who owes who money after getting the bill at a restaurant? It's a surefire way to keep the peace and maintain your friendships, as opposed ot bickering with each other.
How I Learned To Stop Worrying And Love Mobile Payments was originally published on the Payments Blog by Albert Costill.
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