You can't run a retail business today without accepting credit and debit cards as payment. After all, nearly three out of four retail transactions in the United States are completed using such cards. No longer are merchants tied to sales counters and brick-and-mortar stores. The advent of mobile credit card processing has made it possible for retailers to leave the store behind and go to where their customers are. This one development has made whole industries possible, from the mobile food truck business to office-sharing and more.
2014 Trends in Mobile Credit Card Processing
What should you look for in mobile credit card processing for the coming year? We have some trends we think you should keep your eyes on.
1. Consolidation. The sheer number of companies competing in the mobile credit card processing arena makes it logical for there to be some consolidation. According to Business Insider, this will be a year to look out for larger mobile payment companies to acquire some of the smaller upstarts.
2. More competition in mobile market. Even as mobile credit card processing companies merge and acquire other companies, new players will likely enter the market. This is likely going to be fueled by the fact that consumers are warming up to the idea of using their smartphones as payment devices, something that was slow to catch on. When consumers like something, they will demand more of it.
3. Increased use of mobile wallets. Mobile wallets haven't really caught on yet with consumers. Only about 11 percent of the American buying public has used one of these apps, according to Forrester Research. Such apps allow consumers to pay with a credit card without having to carry the physical card. The information is all loaded in the mobile wallet app. The advantages to such a system are less risk of losing a card, heightened security (since an unscrupulous waiter or clerk can't access the number) and having all of your payment information in one secure place.
How mobile credit card processing works is evolving almost daily. It will be exciting to see how this dynamic industry changes over the next several months.