Mobile Wallets: A Good Business Decision?
As a small business owner, it can be overwhelming trying to keep up with all the new ways customers can pay for products and services. Deciding whether to accept new forms of payment is a growing concern.
One new way for customers to make a purchase is through the use of mobile wallets. To make a decision on whether or not you want to allow you customers to use this technology, you have to fully understand how it works.
What Mobile Wallets Do
Mobile wallets allow customers to walk into your store and pay for a product or service using only their mobile device. Essentially, it is an app that houses financial information, like credit cards and bank accounts, which can be used to make a purchase
Of course, mobile wallet is a new term, so it refers to many different types of mobile payments. Usually, the customer will simply need to hold their device near a terminal with will be able to receive the appropriate information.
How This Helps
The best part of mobile wallets is that they allow the customers to feel more comfortable. They no longer have to worry about carrying around cash, or fiddling with their wallet to pull out a card for you to scan. Let’s be honest, many of them have their smartphone in their hand while they checkout already.
It also makes your business look cutting-edge. Customers look fondly on organizations that adopt this type of technology earlier than their competitors. That alone may be reason enough to consider accepting payments from mobile wallets.
What Are Its Weaknesses?
The biggest weakness is that it’s new. That means it is unproven. It hasn’t been with the public long enough to either prove that it works that way its intended to, or reveal its problems so they can be solved.
It’s also a major commitment for your business. It will require new training for your staff, as new technology will be introduced into their everyday workflow. It will also require that you invest in new equipment. Once you start accepting mobile wallets, you’ll have to ensure that the technology is working consistently and your staff knows how to use it.
It should also be noted that we have no idea how this type of technology will affect chargebacks. Chargebacks are already a major hassle for business, and they side heavily with the consumers. It’s possible that this technology will leave consumers at a more vulnerable state. It could also make chargeback fraud (learn more here) even more rampant than it already is. In the end though, it doesn’t matter if it is chargeback fraud or identity theft, there is no way to know how mobile wallets will influence a business’s profits in the future.
Make the Decision That’s Right for You
As a small business owner, you will have to deal with deciding which types of payments you will and won’t accept. Technology will only serve to make these types of innovation more rampant.
One form of payments you’ll have to make a decision on in the near future is mobile wallets, which allow customers to make purchases in-person using only a mobile device.
Mobile wallets have some distinct benefits. For instance, the make the customers more comfortable. If they can pay with mobile wallets, they don’t have to worry about carrying cash of credit cards with them. It also makes your business look more cutting-edge.
There are also a few reasons to neglect offering the option to use mobile wallets at your place of business. It’s new and unproven, requires a great commitment from you and its effect on chargebacks is unknown. It’s up to you to make that decision that’s best for your business.
Jason Eller loves exploring new technology. He knows all technology has its ups and downs – finding the balance is ideal!
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