It seems like mobile devices handle everything for consumers and business owners, including shopping, social lives, errands and bill pay -- just to name a few of the daily tasks that can be completed using a mobile phone these days. Businesses have been wise to make the use of the mobile for as many payments as possible, because these devices travel with us everywhere.
The ease with which the consumer can now conduct their personal tasks means that so many more operations can now be taken care of on the go, rather than having to wait to get back to the office or home. Worse was the time when every payment had to be taken care of at the physical store location where the purchase was being transacted.
It makes sense that mobile payment processing will continue to grow due to the demand to take care of many tasks that require the exchange of money for goods or services.
Here are some of the emerging trends associated with mobile payment processing in 2017 and beyond, which you will need to consider as a business if you want to continue attracting this mobile-focused audience that are looking to conducting more transactions without using cash or any other traditional payment form.
User Experience is Everything
The experience users have during the mobile research, shopping, and purchases stages are the priority for businesses at this time. It is a high priority that mobile services continue to expand so that businesses can keep their customers happy and loyal. Customers have become so accustomed to having instant access to a variety of goods and services that even a few moments of time or the lack or range of payment options can make a huge difference in whether that business is able to garner the transaction.
The mobile service options provided by a business can make or break their customer base, and the business may begin to discover a high rate of mobile shopping cart abandonment if they are not on top of the newest payment diversities.
The trend in mobile payments will now be to focus on the user experience, optimizing the navigation, the look, feel and of course, the speed at which customers can view and complete their information search and purchase transactions.
For businesses, this means more user testing for page load times, functionality, navigation and overall time that must be expended from the beginning of the transaction to the finish.
Since the mobile screen is so much smaller, it can be a challenge to get all the product and payment information on the screen at one time. However, since this is the ideal modem and experience for customers, this will be the year for businesses to take the time and spend what has to be spent, to get their mobile payment options and timing figured out.
This means getting rid of misleading links, redirects, and any distractions. Don't even think about sticking an ad in during a transaction. If the thought of gaining the few pennies that could be made sticking in an ad -- banish that thought and picture a shiny little empty cart in the corner of your mobile screen. It's not worth it. In the minds of customers the fewer the clicks, the better for a mobile payment process so get it down to one click and your customers will love you.
Innovations are Ongoing
The trend toward continued innovation and technological advancement in mobile payments will only speed up and lead to significant disruption in how consumers and businesses conduct their transactions.
Security and regulatory issues as well as customer demands are the driving force behind the ongoing innovation process. Innovations like MasterCard’s program that replaces passwords with selfies and similar biometric authentication is just the beginning as facial identification, voice recognition, and cardiac rhythm may be the norm as technology moves forward.
Just because there is constant change in technology doesn’t mean you should wait until the noise clears and it’s settled. There are no signs in the crystal ball that the runaway tech-train is going to stop or even slow down at some point in the future. In fact, the opposite appears to be happening.
This means you need to start adopting the technology now, as it comes out, so that you can evolve with it and so your customers can expect that you know what you are doing and that you are on the cutting edge of tech.
In the meantime, keep your mobile platforms as simple and flexible as possible to continue the adaptation process and indoctrinate your users in the ease, security, and convenience of the mobile payment experience.
Mobile Fraud Will Grow But So Will Security
All the mobile payments trends are not sunshine and puppy dogs. Because of the growth in usage of mobile payments, fraudsters are now turning their attention to the opportunity this presents for them to break in and steal data.
For this reason, some consumers feel that mobile wallets are less secure than cash. Yet, other big demographics such as the millennials feel confident about these mobile wallet transactions.
It’s up to fintech companies and payment processors to help mobile users become more secure about using mobile payment apps to conduct their transactions. This means sharing information about new security technology that’s in place, including tokenization, which replaces sensitive data.
All of the new technology advances will make whatever information the hackers are able to get completely useless for their criminal intentions. This knowledge will increase user confidence to know that their mobile payment data and personal information is safe.
More mPOS Adoption
Mobile point-of-sale (mPOS) devices will grow in numbers among merchants because of their ease of use and overall benefits. ABI Research estimates that there will be 51 million mPOS devices by 2019, which is nearly half of all POS systems now in place.
The trends is not necessarily toward the inevitable replacement of traditional POS, though, because it’s thought that the omnichannel business model many retailers are developing will provide an environment of co-existence for both types of systems.
Mobile Will Fuel the On-Demand Economy
The idea that people can gain more control over their hectic lives and speed of the completion of many tasks is what is behind mobile’s usage popularity. The concept of an on-demand economy is a natural extension, which provides a way for consumers to get their purchases within a few hours rather than waiting one or two days.
Mobile provides a way for the consumer to make a purchase while they are driving down the road, then reach the store on their way home from work and pick up the item. The contemplated speed to purchase and be on your way is becoming irresistible. Consumers love it and businesses can experience an increase in sales and reduction in other costs because of the reduced use of shipping and delivery expense.
More Mobile Payment Trends to Come
We are just seeing the beginning of what mobile payments may look like in the near future. We are witnessing the change from that thing that used to hang, wired to the wall in the kitchen, to how this little handheld rectangle object -- may very well be signaling the death of paper currency and other traditional payment methods.
BluePay is pleased to bring you this valuable information from our partner, Due, makers of a free digital wallet that allows users to easily make and accept payments online.