Smartphones can be used for much more than just making calls. They can also be used as minicomputers, personal assistants and online banks. Over the past 5 years, we have seen the rise of the digital wallet and mobile payment technology.
Mobile payments are secure, fast and convenient, and as a result, are growing in popularity. Mobile Payments World reported that “the number of in-store payment users in the U.S. is predicted to reach 150 million by the end of 2020 – which will represent 56% of the consumer population at that time.”
Because of this, small businesses should consider adapting to these technologies. In this post, we’ve provided a detailed guide to mobile payment, including information on how it works, its benefits, and how to set it up for your small business.
How Mobile Wallets Work
Digital wallets allow consumers to securely store credit card details so they can make purchases through their smartphone. They do not even need to have their physical credit or debit card to make the purchase.
Mobile payment technology, also known as Near Field Communication (NFC), enables a smartphone and a payments reader to communicate wirelessly to actually make a transaction. For obvious reasons, this is why mobile payment transactions are also called contactless payments.
Examples of Mobile Wallets
The most popular type of mobile wallet to date is Apple Pay. Apple Pay has become popular because of its ease of use. Users simply have to open Passbook on their iPhones, and then add the information for a card associated with your iTunes account. Once you have done this, all you have to do is hold your finger on the Touch ID button to verify your fingerprint. This will initiate the payment. Some other popular mobile wallet solutions include Samsung Pay and Google Pay.
Benefits for Small Businesses
There are a variety of reasons why mobile wallet payments are a smart move for small business owners, including their speed, convenience, and security.
Mobile wallet transactions are completed in only a few seconds, which is much faster than processing either magnetic stripe or EMV chip cards. If you accept mobile payments, you have the opportunity to speed up the checkout process and reduce the wait times for customers.
Mobile wallets also provide convenience to customers. They no longer have to lug their wallet around with them. And if they forget their wallets, they can still purchase things at your business with their phone. This can be a great competitive advantage.
Perhaps the biggest benefit of mobile payments is their high level of security. They not only involve fingerprint verification, but the data that is associated with the stored cards is encrypted and constantly changing. This makes it close to impossible for fraud to occur.
Hardware Required to Set Up Apple Pay
All you need to accept Apple Pay is NFC-enabled terminals. Once you purchase this technology, all customers need to do is hold their device over the terminal and finalize the transaction with their fingerprints. We recommend using Square’s NFC reader, as it connects with Square Stand and allows you to complete transactions at events, outdoor markets, or other locations outside of your shop.
Accepting Apple Pay at Your Small Business
It is very easy to accept Apple Pay at your business. You can follow these best practices to set up your Square NFC Reader and Apple Pay:
- Purchase an NFC-enabled payment terminal, such as Square Reader, that accepts Apple Pay and other contactless payments. The Square NFC Reader is less than $50!
- Take some time to set up your reader. You can setup your Square Reader wirelessly to either a compatible iOS device or through Bluetooth LE through your mobile device. Square provides some easy step-by-step instructions on how to setup your reader.
- Once your NFC reader is setup, you can accept customer payments. All that customers need to do is hold their iPhones close to the NFC reader until four green lights appear, followed by a chiming sound. You will then see a check mark on your screen, indicating that the transaction has been made.
Training Your Employees to Use Apple Pay
There are multiple materials that are included in your Apple Pay marketing kit that will help you train your employees. This includes detailed instructions on how to accept Apple Pay from customers. It even explains ways to tell customers how to set up Apple Pay. Even better, the kit includes stickers that your staff can use as cheat sheets. Make sure to place the stickers near your point of sale so your staff can easily access them when customers are checking out.
Informing Customers that You Accept Apple Pay
It’s important to let customers know that you accept Apple Pay once the process has been setup. You can put Apple Pay decals, which are included in your marketing kit, in your store and near your check out line to easily let customers know. Apple also offers free Apple Pay decals on its Website if you need some extra decals.
To let people who have not been in your store recently know that you are setup for Apple Pay, you can post an update on your social media channels. If you are using a Square Reader, you can use its email marketing software to easily update your regular customers.
Because of the speed, convenience, and security of mobile wallets, all small business owners should take some time to consider if mobile payments could work for them. As you can see, mobile payments do not require much money or effort to setup, but thanks to the benefits that they offer your customers, can give your business a competitive edge in today’s digital world.