Mobile payments will break through challenges for adoption
May 31, 2013

Mobile payments are still new, and advancements in the technology offer enhanced solutions for consumers and businesses that accept mobile credit card payments. Adoption of the purchasing platform continues to be the hot topic in the payment processing industry, and a recent survey identified the point-of-sale option as the biggest trend in 2013.

But while it continues to be a revolutionary solution, mobile payments still face many challenges before widespread adoption. Consumers need information about how buying goods through a portable device is a secure form of payment and how the purchasing method will benefit them. Small- and medium-sized enterprises may have difficulties paying for a smartphone or tablet to make their POS mobile and may be holding onto traditional options, such as cash. Understanding that mobile credit card payments are just another leap forward to accepting plastic and boosting consumer satisfaction will help SMEs implement the transaction method and encourage consumers to adopt it as well.

Financial data security
According to Mobile Marketing Watch, debit and credit card security continues to be a concern for consumers. Conducting a transaction through an unfamiliar method can make customers uncomfortable. Most who utilize credit cards already know how the process works, but for many, they do not understand if mobile transactions are different from other credit card acceptance methods.

Mobile Marketing Watch reports consumers remain skeptical about the purchasing option but SMEs have options available to ensure customers feel safe when using the option. Storing their financial information on a business' portable device can make consumers wary of using the method, but communicating with customers about how mobile POS is secure and financial information is encrypted can help SMEs with mobile payment processing adoption.

SMEs should consider ensuring customers understand that the type of mobile payment processing they utilize safeguards their customers' debit and credit card data. End-to-end encryption, such as that provided by Sage Mobile Payments, offers security for both consumers and SMEs.

Prevalence of portable devices
While much of the American public owns a smartphone or tablet, it remains a significant investment for many. SMEs often cannot afford to make a gamble on new technology without first weighing the benefits and risks of doing so. However, portable devices are becoming more affordable and SMEs will begin to invest in smartphones or tablets to complete transactions and adopt mobile POS. It may take the rest of 2013, but as tablets drop in price and consumers start to become aware of the benefits of using their smartphone to shop, mobile payment processing will become widely accepted across the country.

Nexus: G-WEBCD5