3 Best Mobile Payment Systems for Small Business: 2021 Edition
Our world has been reduced to something we can hold in the palm of our hand (even wear on our wrist), something many of us are rarely without. Our mobile smart devices are our navigators, interpersonal facilitators, newspapers, computers, entertainment sources, cameras, wallets and more.
Being that we spend so much time on and with these smart devices, it makes sense to pack as much punch as we can into them.
Why should customers walk around with a credit card when they can pay through their mobile? Why let cards exchange (potentially Corona-infested) hands when you can be contactless?
Payments for small businesses have been disrupted with the advent of contactless mobile payment systems, which allow customers to pay through an app on their mobile devices. Different technologies have emerged to make this possible, such as near field communication (NFC) that enables two devices to communicate with each other instantly, without even touching.
We’re going to dig deeper into each of the top three mobile payment systems. Keep on scrolling to see which are best for your business.
Best mobile payment solutions at a glance
1. Apple Pay
Apple Pay, developed by (you got it) Apple, is Apple’s mobile wallet and a contactless mobile payment method that’s growing in popularity. As of September 2019, there were more than 383 million Apply Pay users globally so there’s a massive market of Apple-using customers to cater to. Apply Pay takes a number of forms:
- In-store – powered by NFC technology whereby two devices, such as an Apple device and a payment reader, can be held close together to facilitate payment
- Through apps – Apple Pay users can pay directly in an app at the touch of a button
- Online stores – when checking out on an e-commerce website, customers can choose Apple Pay as their payment method.
Studies show that 30% of customers abandon their shopping cart if they have to re-enter their credit card details. Apple Pay and other mobile payment systems like it can mitigate this risk and help reduce cart abandonment rates.
What are the benefits of using Apple Pay?
The main benefits of offering Apple Pay are speed, convenience and security.
Mobile POS systems process payments quicker than regular credit card processing – both chip and swipe. This helps you speed up your checkout lines and improve your customer experience.
It’s also very convenient for customers to just reach for their phone instead of digging around for their credit card or cash. Think of all the times you’ve left your house without your wallet, but how often do you leave without your phone?
Most importantly for customers, Apple Pay is a highly secure payment method with tokenized, encrypted data as well as finger-print or password-protected verification.
Another benefit is that Apple Pay integrates with other NFC-based mobile payment systems or POS terminals, such as Square, so if you already have an NFC POS in your business, you can facilitate Apple Pay transactions.
2. Google Pay
Google Pay is one of the leading mobile payment apps that was born out of the merging of Android Pay, Google Wallet and Chrome’s payment info features. About 150 million Android users across 30 countries pay via Google Pay, so while still a large number it’s less than half of that of Apple Pay. Users simply install the app on their mobile devices and save their credit or debit card payment details securely within the app.
Like Apple Pay, you can accept Google Pay transactions in-store through an NFC card reader or can offer it as a payment method on your online store. Most merchant service providers or POS systems offer Google Pay integration so if you already have a POS system then it should be simple to set up with your payment provider.
What are the benefits of using Google Pay?
Not only does Google Pay provide convenience, payment speed and security, but it also comes with added features that make it worthwhile to offer it as one of your mobile payment systems for your customers:
- Reward/loyalty program – customers can store your business’s loyalty card in their Google Pay account so customers can automatically rack up loyalty points or spend them at checkout
- Gift cards – can also be synced to Google Pay so customers can pay using gift cards
- Store locator – there’s the added benefit that Google Pay users can view all businesses within their location that accept Google Pay. If you offer it, you get to appear on this list and attract new customers
3. Samsung Pay
Samsung Pay works in much the same way as Apple Pay and Google Pay, except it’s limited only to users who own specific Samsung devices.
What are the benefits of using Samsung Pay?
What makes Samsung Pay stand out from its competitors, however, is the fact that it syncs with almost any terminal, even the older ones that don’t work with Apple Pay or Google Pay, except for those that require card insertion. So if you have an NFC POS system, magnetic stripe reader, Square POS or chip-based terminal, you could offer Samsung Pay as one of your mobile payment apps for your customers. Another bonus is that this app also provides mobile payment solutions for both online and in-store transactions and secured an agreement with Visa enabling Samsung Pay to operate on over 350,000 retail websites.
Samsung Pay comes with its own rewards system so users can earn points by using the apps that they can then redeem for rewards.
Choosing your mobile payment system
Choosing from these mobile payment systems really boils down to your customers’ preferences – are they mostly iOS or Android users? iOS users are Apple Pay candidates, while Android users could have the choice of Google Pay or Samsung Pay, depending on which device they have. Luckily, you don’t have to pick – small businesses can offer all these mobile payments solutions, as long as they have the right POS terminal in place.
Side Note: If you don’t have the right POS terminal in your business, a short-term business loan could help you invest in this essential equipment.
The easier, quicker and more convenient you make it for customers to buy from you, the more likely they’ll be to purchase again (and refer you to friends). It’s one of the most important aspects of customer experience. The more mobile payment systems the merrier!