Advantages and disadvantages of mobile payments

Among the payment options that merchants can offer their customers, mobile payment is one of the most preferred nowadays, as it significantly improves people's shopping experience. If you are considering enabling this payment method in your business, keep reading this article to clearly identify its advantages and disadvantages.

First of all, let us explain how payment through a cellphone app works:

  • You charge using an app that is installed on your smartphone and enables it to function as a point of sale.
  • Your customers, in turn, download another app from the same provider, but specifically for making payments at your business and other affiliated merchants.
  • Once people enter their card data on their cellphones, they can make payments just by bringing their smartphones close to your smartphone.

As you can see, this makes it very easy for you and your customers to make transactions. However, so that you know everything about enabling mobile payment in your business, let’s have a detailed look at its benefits and drawbacks.

Advantages of mobile payments

Contactless payment

It uses contactless technology, which works with wireless data transmission (the same technology used with credit, debit and prepaid cards), as explained by the financial information portal Rankia.

In the case of mobile payments, the advantage is greater, since customers do not have to enter their data to confirm the transaction and at no time do they need to physically touch your POS, something that has become very important since the appearance of the virus that causes COVID-19.

Fewer lines and more sales

Sales become more agile, since you don't waste time waiting for customers to insert cards in a slot and type in codes; likewise, you can forget about looking for change and having to count coins and bills, as the financing company Kredito24 points out.

Keeps accounting in order

Forget about your notebook. The apps for mobile payment charging help you to keep your accounting in order, because:

  • They record your sales automatically.
  • They give you backup information on all the sales details, in case you need to consult them later.
  • If you have both an online and a physical store, it gathers information from both spaces.

Greater security

Mobile payments are safer because they prevent people from having to take cash or cards out of their wallets.

In addition, all payment information is stored encrypted on a chip inside the customer's smartphone, and their card data never leaves there. This avoids the risk of their banking data being intercepted and duplicated.

Customer attraction and retention

As consumer needs are constantly changing, when you offer mobile payment capabilities, you expand the payment options for your clientele. This means that your regular customers will continue to prefer to shop at your business because they know you are still in business.

In addition, younger generations are more accustomed to doing everything from their cellphones, so if they don't have the option of paying with an app in your physical or online store, they won't get hooked on your business.

Disadvantages of mobile payments

Relatively new technology

Mobile payment is still a relatively new option, so you need to promote it to your customers to get them to use it.

Get your customers to adopt mobile payment by applying these tips:

  • Publicize its benefits.
  • Use promotional resources that are visually attractive to capture their attention.
  • Let the world know that you offer this payment option on your social networks.
  • Make exclusive offers and discounts for customers who pay with the mobile app you use.
  • Generate specific promotions for younger consumers.

Necessary to have a smartphone

Unfortunately, not all cellphones are enabled to use Contactless technology, although in recent years practically all brands have enabled it.

To give you an idea, check out this list of phones that are compatible with the mobile payment option, published by the ShopNFC portal.

Depends on the phone's battery

Like any electronic device, both your and your customer’s cellphones need to have a charged battery in order to close the transaction.

Need more information on this topic? Check out our guide on Payment Methods.

Have you already decided to use mobile payments in your business?

The advantages that your business gains by enabling the mobile payment option far outweigh the disadvantages. All you have to do now is choose the virtual payment method that suits you best and, presto, your business will continue to grow thanks to it having taken the definitive leap into the digital era.

Sign up here if you have a business and want to join our AmiPASS network:

You can also use QR to make your payments by downloading the App: https://www.amipass.com/cobrar-con-qr/AmiPOS: Learn more about the success of using and managing your business. https://www.amipass.com/comercios/

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