Australians are in love with their mobile phones and take them everywhere, but is your business ready to accept payments from them?
According to Deloitte’s 2015 survey, around 80 per cent of the population have at least one mobile, with nearly 15 million smartphones currently in use[BB1] . But while some 71 per cent of Australians use their mobiles to make payments, only 49 per cent of businesses are set up to accept them, according to PayPal Australia’s September 2016 report[BB2] .
The mobile commerce boom will not be ending any time soon – here are some tips on helping small business owners and tradies join the revolution.
If your business has a contactless point of sale, such as an EFTPOS machine enabled to accept pay wave transactions, then you are already set up to accept mobile payments from customers using mobile wallets like Android Pay and Apple Pay. PayPal Here can also work on an existing contactless point of sale (POS) system, however purchasing a card reader will reduce transaction fees.
The pay-by-mobile services offered by the big banks prompt you to purchase their card readers at the same time.These are usually compatible with helpful applications that provide sales analytics, bill splitting, tab and invoice management or cloud storage services. The cost of the reader varies, depending on the plan chosen.
Integrate your loyalty plan
A big bonus to businesses that transition to mobile payments is the ability to integrate loyalty and reward programs into the application. By removing the need for physical reward cards or keychains, you can also remove the hassle associated with loyalty programs, while keeping the benefits and improving customer retention by rewarding them for returning.
More efficient service
Allowing customers to pay anywhere with a tap of their phone will drastically reduce payment times, and there are two main benefits to being able to serve people more quickly and efficiently.
Firstly, by cutting down on queues, which is particularly helpful on busy shopping days or in rapid service industries like fast food. Customers will be more satisfied, are more likely to tell their friends about their positive experience, and are more likely to return.
Secondly, reducing the time staff spend putting transactions through frees them to spend more time providing better customer service, cleaning or merchandising. This spreads the efficiency through all areas of your business.
While Apple Pay and Android Pay are currently compatible with only one of the big four banks (ANZ), they don’t charge you a fee for use. If you choose the mobile payment services offered by ANZ, Commonwealth Bank, Westpac and NAB you will be charged and will have a range of pricing packages to consider.
Ultimately, while consumer demand for these services is high, businesses must weigh up the costs of enabling them against the benefits in doing so. Do the calculations, see if your competitors are using them, and decide whether it is time to embrace the mobile payment revolution – your sales will thank you.
And if you need more funds to join the mobile commerce boom, talk to Prospa about a hassle-free unsecured business loan.