Loyalty programs an important part of mobile payments technology
October 31, 2013

Investing in advanced gift card programs and loyalty programs is one of the most reliable ways for small and medium-sized enterprises to make the most of recent trends to incorporate mobile credit card processing technology into existing operations.

According to a recent article published in Business News Daily, companies in a variety of industries are enhancing the traditional point of sale concept to represent much more than checkout counters. In fact, many stores are now utilizing mobile devices such as smartphones and tablets to accept credit card payments from consumers in more locations throughout a single establishment.

However, businesses won't simply experience an increase in revenue by investing exclusively in electronic payment systems. A study released by Accenture, a management consulting firm, said stores must think of creative ways to integrate transaction technology with engaging rewards programs. The researchers said there is currently a discrepancy between businesses and consumers in regard to mobile payments adoption. For example, more stores are utilizing these tools more than shoppers, which can have a negative impact on long-term revenue. However, the report examined the reasons for slow adoption among consumers and found there is a significant need for more engagement.

"The results suggest that merely making mobile payment infrastructure available to consumers is not enough," the report stated. "To attract more frequent and valuable customers in the long run and obtain valuable information about their location and purchase history, merchants should also incentivize consumers through rewards or other value-added tools to encourage wider adoption."

Gift card programs and loyalty programs that work seamlessly in tandem with mobile devices can significantly boost revenue streams at small and medium-sized businesses around the nation. These tools will also make it easier for companies to both retain and attract new customers.

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