Request a Demo

Fields marked with an * are required

Businesses Can Reduce Costs With Mobile Payment

By: capturecode | Apr 8, 2014

More and more people are starting to use their mobile devices for shopping these days. A number of people are also starting to trust mobile security using their devices for payments. Businesses are taking advantage of this trend and encouraging their customers to make mobile payments and reduce the costs of sale in the process. If you are an entrepreneur, especially a small business owner, you can cut down the transaction cost by up to 20 percent by switching to mobile payments, according to industry experts.

Retailers Moving to Mobile Payments

The latest buzz in the industry is that retailers are moving in to the competitive and aggressively growing mobile payment market to increase customer loyalty while keeping costs per transaction to a minimum. Many companies, including Apple and Google, alongside banks and credit card companies are launching their mobile payment apps in hope that their app will set the standards in the industry. Apparently, retailers are rushing into the mobile payment market not only to cut their transaction costs but also to offer their customers a maintenance-fee free way to shop online.

Banking on Customer Loyalty

The evolution of mobile technology also helps businesses to reduce the inefficiencies involved in collecting and distributing cash. Apparently, businesses around the world spend a lot of money when taking payments using cash, credit or debit cards and coupons. But if they switch to mobile payments, they can bring down such costs by up to 20 percent, which is a significant percentage.

This in turn will reflect on the costs that the customer has to pay for a product. Retailers can turn the situation in their favor by encouraging their patrons to make mobile payments and also encourage them to stay loyal by offering discounts, and additional rewards for using mobile payment services.

UK Retailers Could Have Saved £463 Million with Mobile Payments

A recent survey by the Center for Economics and Business Research in Britain has revealed that had retailers in the country accepted mobile payments instead of traditional options like cash, credit and debit cards, they could have saved 463 million GBP spent on transaction processing. In Britain alone, 2.5 percent of the amount collected by retailers through cash transactions goes into collecting guarding and distributing the cash. 2 Percent of the total takings go for processing cheque payments and 1 percent goes for processing credit card and debit card payments.

A Matter of Time

While it is true that mobile payment reduces transaction cost, it is going to take a while before retailers can switch to it completely. This is because not a lot of people are still sure how secure mobile payment services are and will need time to trust it enough to use it regularly.

Image courtesy of Feelart/www.freedigitalphotos.net

Write a comment

Recent comments

  • alierry 2 months ago

    https://vslevitrav.com/ – fastest levitra home delivery

  • Rhonda 4 weeks ago

    I really like your blog.. very nice colors & theme.
    Did you create this website yourself or did you hire someone to do it for you?
    Plz answer back as I’m looking to construct my own blog and would like to know where u got this from.
    many thanks 0mniartist asmr

  • Philip 4 weeks ago

    I have been browsing online more than 4 hours today, yet I never found any interesting article like yours.
    It’s pretty worth enough for me. Personally, if all web owners and bloggers
    made good content as you did, the web will be a lot more useful than ever
    before. asmr (j.mp)
    0mniartist

  • Jerrod 4 weeks ago

    This is very interesting, You are a very skilled
    blogger. I’ve joined your feed and look forward to seeking more of your wonderful post.
    Also, I’ve shared your website in my social networks!
    0mniartist asmr – j.mp,

  • Casey 3 weeks ago

    Hello there, I discovered your website via Google while looking for a
    comparable matter, your site came up, it looks good.
    I have bookmarked it in my google bookmarks.
    Hi there, just became aware of your weblog thru Google, and located that it is really informative.
    I am going to be careful for brussels. I will be
    grateful in the event you continue this in future. Numerous other people will probably be benefited from your
    writing. Cheers!

    Here is my site; Brianna

  • Cleveland 2 weeks ago

    It’s very straightforward to find out any topic on web as compared to books, as I found this piece of writing
    at this site.

    Here is my webpage: gamefly off

  • Luciana 2 weeks ago

    Appreciate this post. Let me try it out.

    My blog post: asmr a

  • Henrietta 2 weeks ago

    I believe that is among the so much significant info for me.
    And i am satisfied studying your article.
    However should observation on some basic things, The
    web site taste is great, the articles is in reality nice :
    D. Excellent activity, cheers

    Feel free to visit my web page; asmr an

  • Melisa 2 weeks ago

    My family every time say that I am wasting my time here at web, but I know I am getting familiarity every day by reading thes fastidious articles
    or reviews.

    Review my site :: are asmr

  • Wilton 7 days ago

    Hello! I’ve been following your web site for some time now and finally got the courage to go ahead and give you a shout out
    from Kingwood Texas! Just wanted to say keep up the fantastic job!

    Review my web-site … gamefly my

  • Kevin 7 days ago

    Hello to all, how is the whole thing, I think every one is getting more from this site, and your views are nice designed for new visitors.

    My blog it asmr

  • Annis 4 days ago

    Hello, I wish for to subscribe for this weblog to take
    hottest updates, so where can i do it please assist.

    my web blog; asmr – http://bitly.com/3baYpmn

  • Brandi 3 days ago

    Magnificent goods from you, man. I’ve understand your stuff previous to
    and you are just too magnificent. I actually like what you’ve acquired here, certainly like what you are saying
    and the way in which you say it. You make it enjoyable and you still care for to keep it wise.

    I can’t wait to read far more from you. This is really a great web site.

    Feel free to surf to my blog :: asmr there

  • Remona 1 day ago

    Highly energetic post, I loved asmr that a lot.

    Will there be a part 2?

  • Vuntaic 1 day ago

    compare kamagra prices