Mobile payment solutions, driven by customer demand for security and simplicity, are transforming UK businesses. Here's why and how you must take action now!
In response to the recent pandemic and unstable financial climate, many daily tasks have migrated to digital media, including payments. Did you know that two-thirds of 18-34-year-olds prefer to shop using contactless payment methods? This adoption of cutting-edge technology by younger adults, coupled with the development of new, revolutionary payment platforms like Blink, has provoked an immense rise in mobile payments.
Mobile payment apps and platforms offer customers a no-nonsense, secure, contactless payment option. This helps customers make swift transactions and allows businesses to improve the customer experience.
In this article, we'll focus on how mobile payments work and how they could be a game-changer for your business. But first, let's take a look at what we mean by mobile payments and what has led to their meteoric rise in recent years.
What is a mobile payment?
The term "mobile payment" refers to the process where customers make payments for their purchases using a device such as a smartphone, smartwatch or tablet. A digital wallet (an app that stores credit card data) or payment app installed on a mobile device is usually needed to facilitate these payments.
Mobile contactless payments can be made online, at stores, or through peer-to-peer (P2P) payment services.
The basics of mobile payment solutions
Mobile payment solutions utilise advanced digital technology based on existing payment methods like credit cards. Using a digital wallet, users can make payments without entering long credit card numbers or remembering their PIN, leading to a better customer experience and time-saving during checkout.
Mobile payments can be either peer-to-peer or pay-to-business models.
- Peer-to-peer (P2P) - this payment method allows the transfer of money from one mobile device to another, and friends often use it to lend each other money quickly without having to exchange bank details.
- Pay-to-business (P2B) - this payment method facilitates businesses in taking card payments via mobile phone. However, the businesses' point-of-sales device needs to support mobile payments for this to be possible.
The rise of mobile payment solutions
Mobile contactless payment solutions are proving to be a game-changer as their popularity increases among users. It might surprise you, but mobile payment users will likely exceed 13.9 million by 2025.
Opting for a payment solution like Blink provides a revolutionary, all-in-one solution for businesses, keeping all finances under one digital umbrella and providing several payment options for customers. This digital technology allows a business to take online payments and integrate payment links into their invoices to customers; therefore, the customer has a seamless transaction experience and can make payments quickly and on the go.
Companies can set up a Blink page unique to their business and transform their payment methods. They're an easy and secure way for online transactions, can be customised according to the device your customers use, and can even feature your branding.
However, that's not all; businesses can even send Blink paylinks to their customers via SMS or email to receive secure payments. They can even be used to pre-authorise or verify a customer's transaction. Both these payment options help businesses increase the simplicity and security of online transactions.
Types of mobile payments
There are plenty of options to choose between when looking for a mobile payment platform for your business. However, you must make sure that the solution you select is secure.
Mobile payment solutions are rapidly becoming a top choice for customers. Respondents of a recent survey (https://fintechmagazine.com/digital-payments/75-of-consumers-now-using-mobile-wallets-survey#:~:text=60%25 of people say they would feel comfortable leaving the house with just their phone and not their wallet.) state that 60% of them leave home with just their phone, as their wallet is no longer necessary. Some of the most commonly used mobile-friendly payment options include the following:
- Open banking - a payment solution that enables businesses to connect payment services such as Blink to their bank accounts. This allows them to receive payments directly from bank to bank within seconds.
- Apple and Google Pay - both are digital wallet solutions that allow customers to make payments at online checkout or traditional brick-and-mortar outlets.
- Payment links - a payment link is a URL that can be integrated into invoices and takes the customer directly to a checkout page. It is a quick and convenient method that lets customers make secure payments on the go.
These payment options have added convenience to the buying process for customers. However, customer focus is now shifting to faster and more compatible payment options like Quick Response (QR) codes which remove the need for a terminal. The customer scans the QR code using their smartphone and then chooses their preferred payment method. An example would be using Blink Pages for collecting payments: information can be shared via a QR code with the payment amount auto-populated, making the process super-easy for customers with less room for error.
Benefits of mobile payments
Using mobile payment solutions has several benefits, and if your business facilitates mobile payments, you will be better equipped to acquire customers, improve their experience, and increase loyalty. The game-changing benefits of mobile payments include:
- Better convenience - a payment app can help eliminate transactional difficulties from the purchase process, like those with cross-border transactions. Customers can make payments for the products or services within seconds, making the checkout process more convenient.
- Faster pace - a mobile payment via an app can be processed within as little as a second. The encrypted information required to process the payment is transferred much faster than other methods, such as credit cards (swipe and chip).
- Increased security - mobile payments require authentication either by fingerprints or facial recognition. Transactions made using a payment app are also encrypted. Both these protocols ensure secure payments and reduce the risk of information fraud.
- Improved cash flow - a payment app allows a business to receive payments faster as transactions are processed online. This means there is more cash on hand than before, business operations run smoother, and cash flow improves.
- Improved user experience and loyalty - when the checkout process is simple and easy, customers have a better experience. Happy customers are likely to purchase again, and this builds brand loyalty.
Mobile payments have gained immense popularity among customers worldwide, especially in the UK, as these payment methods are more secure, convenient, and faster than cash transactions.
As these methods add convenience for the customers, they allow businesses to have better cash flow, improve customer experience, and build loyalty. Choosing the right contactless payment option depends on your target audience and your business objectives, such as growth targets and cash flow management.
Want to know more about how to level up your game using mobile payments? Get in touch with one of our experts and learn how Blink can help you transform your payments infrastructure.