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Mobile Payment Systems for Startups—BluePay

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.

There’s an app for everything, which means consumers and businesses are on their mobile phones getting tasks accomplished, seeking answers and information, and buying products and services. Mobile devices have become so popular because they allow people to get things done on the go rather than having to wait to get to an office or home.

The same applies to you and your startup. You most likely are mobile, traveling in search of funding or holding down a regular job, plus working on building your business. That’s when it would be great to have a mobile payment system so you could accept payments wherever you are at -- whether you are actually with your customers or not -- so you could keep that cash flowing.

With the demand for mobile platforms to serve consumers and businesses, a wide range of options are now available with new solutions showing up often to provide businesses with a host of possibilities. The only problem as a startup is finding a mobile payment system that works well for a small business, yet will scale as they grow, and won't cost the entirety of what little budget exists.

To understand the types of payment systems you can add as a startup to take mobile payments, here is a breakdown of the various approaches:

Merchant Account and Payment Gateway

Download The Infographic: How a Payment Gateway Works and Why Your Business  Needs One

You can opt to serve your online and mobile customers with this traditional payment acceptance method that allows you to take credit and debit cards. For this mobile payment option, which also allows you to accept payments through your startup’s website, you will need to establish a merchant account and use an online gateway that links to your website and the merchant account. It works in a similar way to the POS machines used in physical stores.

While this takes some time to set up, which means you can’t accept payments immediately, you do have greater control over the process and receive personalized service from the provider who sets up the merchant account and connects you to the payment gateway.

Most providers of this type of payments system do offer mobile capability with an app or some intuitive website that allows you to use a smartphone or mobile device like a tablet to accept payments.

With this mobile payment option, it’s important to do your research and understand what types of fees and costs are involved in setting up and using a merchant account and payment gateway.

As a startup, you don’t have a lot of cash laying around to use for a lot of fees, many of which are unnecessary and ones you can negotiate your way out of. Just do due diligence to ensure you know what you are paying for, and don’t sign a contract. You can opt for a month-to-month relationship with a payment processor.

Payment Solutions Companies

Evolving from the merchant account and payment gateway combination is a more integrated payments solution that is setup like a platform, offering integration with many ways to accept payments. There are numerous benefits for startups and other smaller businesses with this mobile payment system.

These include a faster setup, fewer fees, and the ability to accept all major credit cards in both a web and mobile environment. You can also receive these payments anywhere, using the mobile apps and cloud-based platform that so many of them offer.

Of course, there are some things to consider if you go with this type of mobile payment system. Customers will order from your mobile-friendly website and then find that they are redirected off your website to pay for the order.

This makes many consumers and businesses nervous about how safe their payment information will be in this situation or how they will get redirected back to know the purchase was completed.

New Mobile Payment Systems

Newer mobile payment systems address that concern with the previous types of mobile payment solutions by integrating with your website’s checkout page, so the customer sees that they stay on your site to complete the entire transaction.

This makes them feel better and has simplified the entire process of online and mobile payments. The new mobile payment systems are proving simple to use so you can ramp up accepting payments quickly.

However, one caveat here is that many of these new mobile payment system providers only offer email customer support with no phone number. This can prove frustrating if you need immediate assistance.

Considerations for Selecting a Mobile Payment Solution

To help you determine the best mobile payment system for your needs, ask yourself the following questions:

  • Does your eCommerce platform support this mobile payment solution?
  • What are the fees involved in working with this mobile payment solution? Are they transparent about their fees?
  • Does the mobile payment provider require a contract or is it month-to-month?
  • Does the mobile payment provider have a good reputation?
  • Does the solution cater to a global audience if you require that?

Answers to these questions can help you locate the mobile payment provider that works for your startup.

Don’t Delay

There are available options for mobile payment acceptance that work for your startup. The most important thing to remember is that more people and business owners are online to do their shopping as well as to interact with service-based businesses.

As a startup, you need this target audience to grow your business into something that is sustainable, so it helps to use the technology to communicate and transact with them as much as possible.

With mobile payment technology that is even directed solely at small business owners, you have no excuse not to migrate to a mobile payment system.


Topics: Mobile Payments, Small Business Tips, Getting Started with Payments

Welcome to the BluePay Blog!

Whether you're a small business, an enterprise corporation, a financial institution, or a software partner, we have created a series of blog posts to help you and your customers, learn more about the complex nature of payments. Take a look to learn how payments can help to simplify your business operation, and may even help to grow your revenue.

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