With an increase in the number of mobile phone users, more than half of them use their smartphones for a convenient shopping experience. This indicates that online businesses need to follow this technological shift in a large spectrum. If you aim to reach your target audience with a focused approach, there definitely is an opportunity for you, i.e. mobile payment service.

 

Though mobile payment service is a relatively new concept, the question that comes into the minds of many entrepreneurs is “How can I grow my online business by introducing mobile payment service?” When asked its benefits from the providers of mobile payment services, PayPal, Bank of America, and Square, it is interesting to know how online businesses can experience growth by implementing this technology.

 

Obviously, you need to have ample knowledge about mobile payment solutions before adapting a way of delighting and retaining your customers. So, here are the eight ways mobile payment service can grow your online business:

1.     No Back Office Required

Regardless of the type and size of business, companies were required to process the payments of their customers in their back office. This meant higher costs in terms of maintenance and day-to-day operations. However, the use of mobile payment solutions caneliminate all these costs associated with payments. In addition, online businesses do not need a back office for further processing.

2.     Suitable For Any Type of Business

There are numerous businesses that do not accept credit card transactions. Even for such businesses, mobile payment systems offer flexible features that are easy to adapt. This is because they do not have to lease or purchase expensive equipment for this. Moreover, there is no restriction related to signing up for business contracts. All this makes it an ideal option to reduce business costs.

3.     Instant Access to Money

Businesses are not required to have POS systems before adapting this new method ofpayment. Without POS systems, they can accept payment in different forms such as checks, cash, credit card, and PayPal. Merchants do not have to pay higher fees either. By using their debit card and PayPal account, they can have instant access to money.

4.     Sales Analytics

Gone are the days when even large businesses were looking for an accurate method to track their customers’ sales. With the help of mobile payments, online businesses can now track their customers’ activities related to their sales. Since every transaction is recorded in a systematic way, there is no chance to miss even a single customer.

5.     Improves Customer Relationship

For online businesses to excel in a specific industry, making a sale is not the only thing should be doing. As the competition is increasing, mobile payment solutions have come up with exciting ways to create and retain customers, leading to improved relationship with them.Mobile payment services enable customers to make payment in their own name, send cards, and be a part of loyalty programs.

6.     Ease to Control Security

When it comes to questioning security risks associated with the use of smartphones in terms of payments, mobile payment solution providers agree too. However, there is a lot to communicate to customers regarding increased security of these payment systems. Certain technologies have made it possible to reduce potential risks. This indicates that mobilepayments are a safe way to conduct transactions in a convenient way.

7.     Improves Customer Service

Whether customers prefer mobile payments or not, online businesses can still gain a higher level of competitive edge from them. Offering an additional payment option will create a positive image in the minds of customers. Therefore, online businesses can enhance their customerservice.

8.     Increases Profits

Businesses dealing with credit card transactions often have to compromise on their profits as the amount of deductions affects profits directly. Now, online businesses have a good opportunity to look at because mobile payment service providers charge 2.75% as the transaction rates. This is less than the charges deducted in credit card transactions.

Due to rapid advancements in technology, mobile payment services are considered a new and profitable dimension for online businesses striving for growth in the competitive corporate environment. Secondly, these services are growing in popularity because of the high potential of this technology. Since the success of a business depends highly on its customer base, this new method of payment has made things easy for customers as well as companies.

Author’s Bio

The author Donna B. is a well-known professional in the IT industry. Having immense knowledge about emerging technologies businesses can adapt, she likes to share the same with readers who are passionate to learn about mobile payment services. According to her, 4G has lead to an increased use of mobile broadband, you can compare packages at Broadband Expert to find a plan that suits your budget.