For some reason, we like devices that control a multitude of things, like the universal remote control, that combines cable box controls with DVD players, gaming consoles, etc. The most recent entry into this category are virtual home assistants, like Amazon’s Alexa Voice Service, that can control many functions and appliances within your home, like your thermostat, lights, garage door, in addition to play music and give you the news, sports and weather reports. This multi-function control idea has extended to payment cards, with universal payment cards that are aimed at decluttering your wallet while maintaining an aspect of familiarity with credit cards.
A recent survey commissioned by Samsung Electronics America revealed that while small businesses may not always have the most up-to-date technology, most of their customers are on board when it comes to mobile payments. The survey, which was conducted by Greenberg Quinlan Rosner Research, found that the customers of most of the small businesses polled want to pay with their smartphones, and they expect the use of mobile payments to grow. However, a Pew Charitable Trusts study indicated that banks and mobile payment providers must do a better job of explaining the safety and security of mobile payment apps if they want more customers to use it.
Numerous studies show that while an increasing number of consumers are giving mobile payments a try, few are using the technology on a continual basis, for two main reasons: they forget to use it and they are not sure what merchants accept mobile payments. Both issues can be attributed to a lack of value added services (VAS), a theory that many experts believe could be the driving force to mass market adoption of mobile payments. Despite this apparent setback, mobile payments and mobile wallets have, for the most part, been developing as expected, becoming the dominant marketing channel for a variety of companies, particularly those who want to reach out to new customers with simplicity, speed and scale.
Thanks to our smartphones and the mobile internet, we live in a world that is more connected than ever before. Not a day goes by when we don’t check our messages or connect with someone via our devices. With the introduction of mobile payments, our smartphones are becoming more than just devices to communicate with each other. Mobile payments not only allows customers to pay for various goods and services with the payment system of choice, but it also enables merchants to accept these new methods of payments, and even allows merchants to take their business to their customers, no longer tied down to a brick and mortar location, or a central wrap stand.
It’s been nearly a year since the EMV liability shift took place last October, and while it seems more consumers are actively using their chip-embedded payment cards, it appears that the EMV standards are actively backfiring with small businesses. The CAN Capital Small Business Health Index shows that small retailers are turning away from EMV at increasing numbers, and are increasing their acceptance of mobile payments systems for customer payments.