Provide consumers with a reason to adopt mobile payments
May 14, 2013

Mobile payments are set to transform the retail industry by allowing small- and medium-sized companies to accept plastic on the go. During the warmer months, accepting debit and credit cards outside stores is essential for SMBs that drive sales at outdoor venues.

According to a new study, however, purchasing products with a mobile device is still new for many consumers and businesses may need to give customers a reason to utilize the payment method. Small organizations employing electronic payment systems should institute a company-wide policy encouraging mobile payment adoption among consumers who reach for their smartphone in the store and at outdoor venues.

Why consumers do not utilize mobile payments
Accenture, a global management consulting firm, surveyed 4,000 smartphone users in the United States and Canada in October 2012 about their use of mobile devices at the point of sale. The survey found customers need incentives to purchase products with a smartphone. 

About 32 percent said they do not use mobile payment technology but would if they were able to track their purchasing history. Sixty percent stated they would employ the transaction method more often if they could access their receipts on their mobile device. In addition, among who use smartphone payment options, half said being able to store coupons on their phone would encourage them to pay with mobile technology more often.

Security is still a major concern for consumers. Forty-five percent of those who do not employ mobile payment options said they felt uneasy about the technology. Thirty-seven percent said they would still utilize electronic checks and credit cards, however, to protect their financial information.

Give customers a reason
The survey highlights the growing need among retailers to stimulate consumer adoption of mobile payments. When SMBs are away from the checkout area or the store entirely, mobile payments allow them to continue driving sales.

However, with so many customers needing to be motivated to use smartphones at the point of sale, Mobile Commerce Press suggests small companies consider implementing a strategy to educate consumers about why mobile payments are a great option for increased financial security and faster transactions. The more often a consumer uses a payment method, the more comfortable they become with it. Telling customers that end-to-end encryption safeguards data can help ease concerns about the purchasing technology. 

Nexus: G-WEBCD3