4 Reasons You Want Your Clients to Use Mobile Payments
In 2016, the mobile payment market – including NFC, smartcard, SMS and mobile app payments – was valued at $21.15 billion, according to Markets and Markets. The percentage of consumers who used a mobile wallet in the last 30 days increased from one in 10 in 2014 to one in four in 2016.
As more consumers and businesses adopt mobile payments, more accounting clients will be using them as well. Here are four reasons why mobile payments are to everyone's benefit:
#1: Ability to Accept More Payments From More Clients
One advantage of accepting mobile payments is the ability to accept more payments. The projected growth of the mobile payment market – triple what it is now by 2021, according to Forrester – makes accepting mobile payments vital to maximizing revenue.
In contrast, six out of 10 executives expect that in a decade their customers will be paying for transactions in much the same way they do today. This discrepancy suggests that companies may not be inclined to adopt mobile payment technology as fast as consumers would prefer. As more consumers adopt mobile payments, this can become a competitive disadvantage for businesses that don’t accommodate.
If customers aren't carrying around cash or credit cards anymore, companies that aren't prepared to accept mobile payments will lose out on sales.
This also applies to accounting firms seeking to retain clients. By accepting mobile payments from accounting clients, your firm positions itself to attract those you might otherwise lose to competitors.
For businesses and bookkeepers, efficiency is one of the biggest benefits of mobile payment processing. Transaction information from mobile payments is automatically digitized, which means no more manual data entry for bookkeepers. It translates to a lot less time and far fewer errors.
Mobile payments, in combination with integrated apps and point-of-sale software, mean that data not only gets automatically imported into accounting software, but it can also be exported into programs for functions, such as inventory management, invoicing and tax preparation. Payments for business expenses, vendors and payroll can also be automatically integrated.
Convenience is another compelling reason to accept mobile payments. In contrast to traditional point-of-sale transactions, mobile payments can be accepted from anywhere. This means that sales can be made on the spot.
This portability certainly enhances convenience for customers, making their whole experience with you more pleasant for them. This also represents convenience for businesses, enabling companies to conduct business wherever they prefer. No more lost sales or payment delays that can hurt cash flow.
Security is a fourth and extremely important reason you should encourage your clients to use mobile payments. Among consumers who have not yet adopted mobile payments, 40 percent list the main barrier as security concerns over entering their credit card number into their phone, according to Creative Strategies research. Another 29 percent say they don’t trust that mobile transactions are secure.
Mobile transactions are actually more secure than most people think, however. Today’s major mobile payment providers use tokenization, where each transaction employs a one-time random code that cannot be stolen or reused. Additionally, newer mobile phones add a layer of security by allowing multi-factor user authentication, such as fingerprint ID and facial recognition. By taking advantage of these security innovations, your clients can feel secure in accepting mobile payments and free to enjoy the advantages of this increasingly popular technology.
All in all, there are plenty of reasons to start accepting mobile payment.