Offer consumers purchasing security with mobile payment processing
April 15, 2013

Mobile payments has been growing in prominence in recent years and is only expected to increase as a payment option. As more small businesses begin accepting credit and debit cards through the purchasing platform, it is important for companies to understand data security is a top concern for many consumers. A new report by the Federal Trade Commission (FTC) recommends small-business owners take a few steps to ensure customer satisfaction when using mobile payment solutions.

Study finds worry among consumers
According to the FTC's staff report, 42 percent of consumers voiced concerns about data security when using mobile payment processing. However, the study found advances in technology has made the payment option just as secure as traditional payment systems, which transmit or store financial information in an unencrypted form. Mobile transactions offer security for consumers through utilizing dynamic data authentication, which creates a unique code of payment information for each transaction. Because it generates a new set of encrypted code, mobile transaction processing is a safe purchasing method for consumers.

The FTC also reported the payment platform gives small-business owners the option to store financial information on the mobile device or an element separate from the phone's memory. 

Many consumers and companies may not be aware of these benefits, and organizations may want to consider adopting mobile payment processing as another choice for consumers. The FTC suggests companies communicate the benefits of using mobile payment processing to customers to avoid any misunderstandings, drive sales and increase consumer loyalty. The commission recommends organizations develop a few strategies to alleviate client concerns.

1. Inform consumers they can block charges
The FTC advises small businesses communicate with customers about their options when using mobile payments. The issue of cramming, or when a third party gains access to a client's financial information, can lead to fraudulent charges on the customer's mobile carrier bills. In the rare case of this happening, consumers can block any charges. 

2. Create consistent steps when accepting payments
Business may also want to consider developing official steps that employees must complete when conducting a mobile payment transaction. By establishing an official process, organizations help consumers feel more secure because they know what to expect.

3. Convey the security benefits to customers
Mobile payment processing is still a new purchasing platform for many consumers, and some may not understand the value of using the option. Small businesses may want to explain the benefits and give the client several payment options. 

Nexus: G-WEBCD3