There are several factors that determine the success of any small business. To keep the services up and running they rely on getting paid by the customers on time. There are wide varieties of payment systems that enable a consumer to pay for the services via a mobile phone instead of cash, cheque or credit card.
The top mobile payment systems are –
It has partnered with major credit card companies and several retailers. Apple Pay is a step towards the growth of small businesses. It provides a high level of data security and privacy of the consumers as each transaction is encrypted through a unique code. In order to accept and process apple pay transaction small business need a payment terminal that support NFC. Apple Pay will streamline the payment process for consumers, enabling the small business owners to control the integrated payment system through a single screen saving their time and effort.
It is a significant innovation launched by Google Incwhich small business owners to generate business opportunities by offering loyalty cards, gift card and special discount deals. The wallet objects API, which is a secured way of integration enables the users to access the loyalty programs from their device.
It is compatible with android phone(Gingerbread v2.3+) and iPhones (iOS v6.0+).with a US based SIM card. Similar to Apple pay, it uses NFC technology. The users need to install the app first and feed in their card information.It stores all credit, debit, loyalty and gift cards.
Within US, it can be used anywhere where MasterCard@PayPass is accepted in-store or online.Google has signed up with First Data to offer a special starter package with includes $100 of free processing and free contactless Pin pad to accept payments.
It provides opportunities to the retailers for customer outreach. The loyalty programs stored in the system is an easy way to attract new and old customers. The only upfront cost to the merchants is for the setting up of the NFC enabled credit card terminal. Also, there is a potential security threat associated with the NFC terminal that can somehow be reprogrammed which may lead to customer’s data breach.
It provides benefits to the merchants as it allows direct payment from American express, Chase and Wells Fargo cards enabling them to serve a larger number of mobile wallet users.
Shopping online can be a risky venture. It is one of the most popular, easiest and safest options why many small businesses offer their customers. It is used all over the world which increases the chances of small business owner to expand their business world wile. Its brand recognition encourages customer’s confidence in online shopping.
A small business can easily set up an account in three steps by selecting an appropriate payment solution, providing the small background of the business and then by customizing the options that are available to the customers
Launched by Merchant Customer Exchange (MCX), this new central mobile payment system could soon steal the Apple’s boom in the market. The system has already begun operations in pilot projects across the United States; it is expected to be rollout nationwide next year, 2015
Rather than the NFC, it uses QR codes displayed on a cashier’s screen and scanned by the consumer’s phone or vice versa to initiate and verify the transaction. The payment is processed by an Automated clearing house that has bank accounts charging smaller processing fees from the retailers and letting them to avoid paying the credit card fees by 2 to 3 %
The system is expected to influence large numbers of customers through discounts and offers.