How a mobile payment service can grow your online business

By Jennifer Lonoff Schiff, CIO |  Mobile & Wireless, mobile payments

Bell: For Mobile Pay on Demand, our service for small businesses, our service is a flat fee structure [2.7% per swipe]. For merchants with larger transaction volumes, we offer Mobile Pay Business, which is priced through negotiated rates like other products we offer to larger clients. We believe our fee structures are competitive with others throughout the industry.

Ury: Square's fees are both low and transparent [2.75% per swipe or $275 per month]. And our monthly pricing plan can bring fees down as low as 1.3% per swipe.

Metzger: For businesses that balk on payment credit processing fees [PayAnywhere charges 2.69% per swipe], it is widely known fact that businesses that don't accept credit cards lose up to 70% of purchases each year. Consumers prefer credit cards to cash for many reasons: they offer rewards, certain protections to the card holder and are generally easier for larger purchases. In addition, PayAnywhere merchants have told us they are increasing sales volume by 20 to 50% from before they accepted credit cards. Other industry organizations place the average percentage increase in sales significantly higher than 50% once a merchant adds credit cards as a payment option.

Mobile Payment Solution Large vs. Midsized vs. Small Businesses

Why should a midsized or larger business consider a mobile payments option?

Metzger: Mobile payments are not just for micro or small businesses. They are being utilized in all sized companies. The convenience to the consumer and ability to capture card data in a more simplified and inexpensive manner are driving these initiatives. Large service type business that have accepted credit cards manually for years can save anywhere from 1 to 3% of their processing costs by utilizing card reader mobile payment technologies.

But not all merchants' customers are consumers. Business-to-business merchants are also a good fit for mPOS systems. For example, a supplier to retailers such as a food and beverage distributor or office supply distributor can take orders and have them paid on the spot from their customers. Because so many companies are using credit cards for all their purchases, it makes sense for their vendors to be able to offer the most convenient way for them to place and pay for orders.

Nayar: As we saw in 2012 and especially during the recent holiday shopping season, consumers are increasingly making purchases via mobile. PayPal projected $10 billion in mobile payment volume in 2012 -- and that doesn't even include transactions made through mobile card readers. As the consumer demand for mobile continues to increase, all businesses should adapt and provide their consumers with convenient and secure mobile payment options.


Originally published on CIO |  Click here to read the original story.
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