While use of mobile wallets like Apple Pay and Android Pay is increasing, it is still a fraction of overall retail sales. This has led some retailers and merchants to believe that installing the technology to accept mobile payments may be a waste of time and money that could be spent elsewhere. What these reluctant merchants need to realize, is that they could be alienating a large portion of their future customers.
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.
If you’re a small business owner, you likely know a thing or two about chargebacks, and those things are probably not all that pleasant. Not only do these customer requests to reverse transaction charges present bookkeeping challenges, but reports show that about 86 percent of chargebacks are fraudulent.