Half of purchases may be on mobile devices by 2020
May 16, 2013

Accepting plastic at the point of sale has a plethora of benefits for small- and medium-sized businesses. SMBs are turning to mobile payment processing more than ever before for enhanced data management time tracking and to increase customer purchasing satisfaction. Consumers are slowly becoming aware of mobile payments and as more go mobile, so will the checkout process, according to new research from Visa. The technology to utilize electronic payment systems through a portable device is going to continue to advance and may take over the majority of transactions for companies that accept checks and plastic payments in the next decade.

Mobile payments go mainstream
Visa released data regarding its predictions for mobile payment processing adoption at the Internet Advertising Bureau's Mobile Engage event in London, according to The Drum, a marketing and media news site. The credit card issuer estimated half of the company's cardholders will purchase products via mobile devices by 2020. By then, Visa projected customers will feel more comfortable with the purchasing platform and advancements in the technology will see mainstream use. 

Caroline Hawkett, senior vice president of new product development for Visa's Europe division, said at the event that mobile technology will redefine payments and boost customer payment satisfaction.

"The blurring and interaction between the physical and online world, with people starting with one device and finishing with another, means there is a lot of work for us to do to understand what consumers want," Hawkett said.

SMBs committed to mobile payments may consider these findings old news, but as digital advancements penetrate the retail landscape, making purchases through a mobile device will gain widespread acceptance. Understanding which payment options consumers prefer has been an essential strategy for small- and medium-sized enterprises to drive sales. Most already integrate electronic payment systems at the point of sale to let customers purchase products with their favorite method, but mobile payments go beyond accepting plastic. 

Bringing debit and credit card acceptance into the mobile environment allows companies to drive sales away from the physical checkout, speeding up the transaction process for consumers. Mobile Future Institute reported businesses that have instituted mobile commerce into their payment processing have seen significant results.

Mobile payments are pushing the retail landscape further into the virtual world. Payment processing was once only financially available to larger corporations, but as technology has advanced and SMBs have integrated the solutions into their business models, the retail environment has flourished. Sage Mobile Payments is an option for SMBs aimed at driving sales through the increasingly digital future.

Nexus: G-WEBCD6