Encouraging Mobile Payments

Mobile payments or mobile wallets as they are sometimes called can speed up service for consumers, be a convenience for both the customer and the merchant and offer operational benefits for those encouraging the use. Mobile payments such as Apple Pay, Google Pay and others are accepted at more and more locations but there is a reluctance for consumers to use them.

Getting your customers to use mobile payments might be a bit of a challenge. According to recent studies, only $1 of every $148 retail dollars spent is done by mobile payments. Why is that? The number one answer from the consumer is security.  Or, should we say insecurity?

This is despite the fact that today’s online processing system are considered by experts to be very secure. To combat this, retailers who want to shift their clients to mobile payments may need to reassure their customers and educate them on how programs work. Retailers might consider providing incentives for mobile payments through coupons, special offers and other options.

Despite the fact that more consumers are using mobile devices for shopping, using those same devices for payment in retail locations is still a challenge that merchants need to help their customers overcome.

Payment platforms such as Apple Pay promise a faster checkout experience, which many studies have shown is not always the case simply because customers don’t know how to use the system.   Some really progressive merchants such as Macey’s in Utah have introduced a “skip-the-checkout” option and customers scan items they want to purchase and do it with their mobile wallet as they load it into their cart. Walmart has recently introduced Walmart Pay to create their own platform for payment.

One hurdle we need to overcome is the fact that consumers just don’t understand the advantage of a mobile payment over traditional credit card payment. It’s still a credit card payment, simply transacted in a different way so you don’t have to pull your American Express card out of your wallet. Chances are, you are already holding your phone in your hand so paying by credit card with your phone is just handy.