Customers love the convenience of mobile payment methods so they can scan and go at checkout. Accepting mobile payments also benefits business owners. Adding these fast, secure options can lead to more sales and stronger audience engagement.
In this detailed guide, we’ll explore the advantages of mobile payments and find out how to accept them at checkout.
What Is a Mobile Payment?
Mobile payments allow customers to pay for products and services with their smartphones, watches, and other mobile devices. They may use peer-to-peer payment apps like PayPal, mobile wallets such as Google Pay, or SMS systems for pay-through-text.
Both physical and ecommerce companies can accept mobile payments.
How Do Mobile Payments Work in Online Stores?
If your customers primarily buy online, you can add popular mobile payment options to your checkout page. More than half of ecommerce sales take place on smartphones and tablets, so adding m-commerce payment methods can increase your revenue and encourage customer loyalty.
When someone chooses a mobile payment method at checkout, they can complete the transaction through their existing m-commerce account. They don’t have to enter their credit card number, which can make consumers feel safer if they’ve never shopped on your site before.
Offering multiple payment methods improves the ecommerce experience for your customers. They’re more likely to complete checkout when they can select apps and services they already use.
Different Types of Mobile Payments
NFC Payments
Near-field communication (NFC) devices use radio waves to transmit encrypted payment information from mobile devices. Your business can use this type of system at point of sale to accept NFC-compatible m-commerce apps such as Google Pay and Apple Pay.
The simple NFC scanner plugs into your laptop, tablet, or smartphone so you can make sales anywhere with an internet connection.
Browser-Based Mobile Payments
Customers can also use mobile payment methods if they access your checkout through an internet browser on a laptop, tablet, or smartphone.
Your ecommerce site can accept a range of m-commerce methods including digital wallets, ACH bank transactions and peer-to-peer payment apps. Customers can also type in their credit or debit card numbers to complete a card-not-present (CNP) transaction.
In-App Mobile Payments
Ecommerce stores with dedicated shopping apps can accept mobile payments at checkout. In-app m-commerce uses the same type of form you’d see in a desktop browser, but it should be optimized for mobile and as short as possible to reduce the risk of cart abandonment.
You can remove friction and improve convenience by allowing customers to save their preferred mobile payment methods right in your app. When they return to browse, it’s fast and easy for them to buy without entering card information again.
Peer-to-Peer Mobile Payments
Customers can pay with popular P2P apps like PayPal at many online stores. You can accept these methods at checkout to appeal to the expansive ecommerce audience who prefers these services.
SMS Payments
This payment method lets customers complete transactions by texting a dedicated phone number. Although SMS payments are rare in the US, they’re commonly used in many international markets.
6 Advantages of Accepting Mobile Payments
1. Safer Transactions On the Go
Your business can accept mobile payments from anywhere as long as you have a tablet, smartphone or connected device. The NFC reader uses a simple “dongle” that plugs into your device. Business owners who sell at community events, pop-up shops, fairs and similar locations often use this type of m-commerce tech.
When you accept mobile payments in person, you don’t have to worry about losing cash or having it stolen. It’s also more difficult to track cash for accounting purposes.
2. Wider Audience Appeal
As the popularity of mobile payment methods grows, it’s even more important for your business to offer a variety of options at checkout. You’ll reach the largest available audience if you have a diverse selection of preferred payment methods, including mobile options.
For example, Millennial and Gen X shoppers prefer digital wallets. Older adults tend to use browser-based mobile payments instead.
3. Strong Security
NFC tech uses encryption to shield credit card numbers and other payment information during transit. Even if someone intercepts payment data for fraud or identity theft, they won’t be able to decode the numbers. Accepting mobile payments encourages audience trust, since nearly half of consumers say they see contactless and mobile methods as the safest ways to pay.
Many customers also prefer m-commerce options like digital wallets so they don’t have to share their personal financial information when buying online. These apps use tokenization, which means they don’t store payment data in a readable format. Many also verify customer identity through biometric authentication, like a fingerprint or face scan.
4. Lucrative Revenue Opportunities
The global mobile payment market will likely exceed $6 billion by 2027, creating a vast opportunity for companies that accept mobile methods. As more customers adopt m-commerce, you’ll see more conversions, higher-value transactions, and more frequent purchases if you start taking these methods at checkout.
5. Easy and Affordable
NFC card readers cost less than $50 for a basic model that plugs into your laptop or smartphone. You can easily begin accepting mobile payments in person with this simple investment.
If you have an ecommerce store, you can instantly expand to m-commerce with Pay.com. With our full-service solutions, you can accept many popular mobile payment methods including PayPal, browser-based mobile payments, and in-app payments. We have a transparent flat-fee payment structure so you won’t have to worry about costly added charges.
6. Better Customer Experience
Customers won’t shop with your brand online unless you provide an exceptional user experience. The speed and convenience of mobile payments supports the seamless checkout process buyers expect.
Your audience members will see your business as trustworthy and reliable if you accept their favorite forms of mobile payment. It also gives you an edge over competitors that haven’t adopted these payment methods.
