Are You Prepared to Accept Mobile Payments in Your Store?

In 2019, brands and retailers continued to expand their omnichannel strategies in order to span the online and offline shopping experience, especially where mobile is concerned. In fact, fourth quarter shopping statistics indicate that smartphones accounted for 84% of the holiday season’s e-commerce growth.

Retail Dive is quick to point out that mobile spending trends show no signs of a slowing down.

As we navigate through 2020, retailers will continue to rely on mobile devices to provide store associates with the necessary information to assist customers and streamline the checkout process.

When employees are armed with mobile devices, retailers can use the technology to create an endless aisle experience. In other words, staff members can locate goods available at various locations and help customers with buying and shipping items to their homes.

“Retailers have already been providing floor associates with iPads, Microsoft Surface tablets and other devices to offer shoppers more options without a sizeable physical store footprint.”

~ Retail Dive

These mobile innovations are important because, as research indicates:

  • Three out of five U.S. smartphone users have a mobile wallet.
  • Seven out of ten of customers surveyed want the ability to add cash to an app or digital wallet while in-store.
  • Sixty-eight percent of customers said they’d shop at the store more often if they could add cash to an app or digital wallet in-store and 57% indicated that they would spend more money.
  • 60% of shoppers want to pay for products in-store on their smartphone using loyalty points they’ve earned—nearly 50% of them would join a loyalty program if they could use points to purchase products.

Despite these statistics, as of October 2018, only 50% of retailers accepted mobile payments, according to a survey conducted by payment solutions provider Blackhawk Network.

The company goes on to say that mobile wallet adoption, which is clearly on the rise, has the potential to generate nearly $190 billion in transactional value by 2021 here in the U.S.

It’s estimated that 2.1 billion customers around the world use mobile wallets for payments or money transfers. Compared to companies in other parts of the world, U.S. retailers have been slow to adopt the technology. This is due, in large part, because of the lack of updated hardware.

According to AllBusiness,  even though about 61% of small businesses admit to experiencing cash flow problems, many of them don’t use smartphone technology to accept payments from customers.

Here are some of the reasons these organizations aren’t taking advantage of mobile technology:

  • happy with current payment options (38.08%)
  • don’t have technology for accepting mobile payments  (19.48%)
  • too complicated (6.69%)
  • it’s expensive (11.92%)
  • concerned about security (13%)

“If you don’t accept payment in the way that your customers want to pay, you could be cutting yourself off from potential income. Even if you are happy with your current payment options, that doesn’t mean your customers are,” says AllBusiness.

Find out how retailers like you are saving time and making money with the Rain POS system. POS, E-commerce, and Marketing all in one.

Sherene Funk is the author of the contemporary romance Autumn in Your Arms and two small business e-books. She is a voracious reader who owns more books than she can ever read in this lifetime. A graduate of Brigham Young University, she worked in advertising for many years before moving to her current writing position at Rain Retail Software. She researches non-stop to see what successful retailers do and loves to share what she learns with small business owners.