Requirements Customers Have For Mobile Payments

Featured article by Kristen Gramigna, Chief Marketing Officer, BluePay

Mobile payments can equip small businesses to accept payment by credit or debit card, using the mobile device that small-business owners likely have within reach most of the time. While mobile payment technology can benefit both customer and business owner, some customers remain hesitant about them.

Here’s a look at the basic requirements customers have for mobile payments, and how to address these key concerns in a way that improves their payment experience.

A straightforward and simple checkout process. Mobile payments are intended to provide a simple way for the customer to use a card to pay anywhere, including in store or remote locations, at any time. (In the case of a mobile wallet, the technology even negates the role of a physical wallet or credit card.)

As a business accepting mobile payments, adjusting your processing to demonstrate the ease of use mobile payments offer can gives customers a means to experience the benefits in a way they can see, touch, experience and feel.

For example, if using a mobile payment transaction still requires the customer to wait to pay, or wait as long (or longer) for an employee to input card data and complete the transaction, his/her perception will likely be that mobile payments provide little to no benefit.

By contrast, equipping your customer-facing staff to “roam” the sales floor and accept mobile payments at the exact moment the customer is ready to buy demonstrates a smooth and fast purchase experience, and eliminates the need to wait in a checkout line.

Confidence in transaction security. Assuming a business uses a reputable mobile payment processor that guarantees Payment Card Industry security standards (often called PCI compliance) a customer’s sensitive information will be kept just as secure during mobile payment processing as a fixed point of sale terminal. Don’t assume customers know this. In fact, eMarketer cites a recent survey conducted by Walker Sands Communications that revealed customer concerns with privacy and security remain the dominant reasons they don’t use mobile payments.

Post signage in your store addressing the basics of mobile payment transactions and how they work, from the customer’s standpoint. Explain how the customer’s sensitive payment information is transmitted for processing, how his/her card data is stored (not in your mobile device), and who can access it after the fact.

Additionally, train your staff to process mobile payment transactions with confidence before you incorporate them into your business model. Practice troubleshooting methods, like how to conduct mobile payments offline when there isn’t a secure Wi-Fi connection available, and how to add a tip, apply discounts and rewards, and process returns. Consistently meet with all the members of your team that process mobile payments to discuss how customers are receiving the technology, and the main hesitations customers voice about it. Educate your staff with the information that addresses these concerns so that they can speak knowledgeably about the technology to the hesitant customer.

Rewards. The option to enroll in loyalty rewards programs that reward for repeat purchase and patronage are now common — but they’re not always easy for a small businesses to manage, and may not be perceived as a real benefit by the customer as a result. More than half of respondents to an Accenture study said they’d be more likely to use mobile payments if there were rewards involved, but experts at Accenture also explain that generic reward programs will no longer be enough to satisfy customer needs as payment technology evolves.

Because many mobile payment providers empower small businesses to integrate their loyalty programs with the technology, the operational efficiency of managing loyalty programs is optimized. By recognizing when customers have earned rewards and whether they’re eligible to redeem them while the mobile payment transaction is underway, for example, customers are able to realize the immediate “payoff” associated with mobile payments.

Mobile payments can improve the transaction experience for customers and businesses, but there remain some hurdles to adoption — especially for customers who haven’t used the technology. By recognizing what customers want in mobile payments, and what’s stopping them from adopting them, small businesses can improve customer confidence with mobile payments.

Kristen Gramigna is Chief Marketing Officer for credit card processing firm, BluePay. She has more than 20 years experience in the bankcard industry in marketing, direct sales and sales management. Follow her on Twitter here.