Businesses that do not process transactions via the top contactless payment applictions yet are losing a lot of potential profit. Of course, the majority of American consumers still prefer debit and credit cards, but the use of mobile payment apps is slowly popularizing as well. Statistics even show that there are currently more than 69.4 million smartphone users in the country who rely on contactless payments for their daily transactions.
So if your business only accepts cash or credit and debit cards at the moment, you might want to consider investing in one of the best mobile payment processors. Digital brands like Google and Venmo have stepped into the ring of mobile payment applications, so we'll be weighing the pros cons of each.
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Apple Pay is undoubtedly one of the most popular contactless payment app and digital wallet options to date. Statistics show that 74 out of 100 merchants are equipped with Apple Pay.
One of the reasons Apple Pay is so popular is it has a versatile interface that focuses on user experience. Not even top contenders like Samsung Pay, PayPal, or Google Pay can match the easy-to-use interface that Apple offers. It supports both in-store and online payments and processes P2P transactions, all while retaining competitive fees compared to what most credit card processors charge.
On the part of the consumers, Apple Pay is very easy to use as well. Unlike with any other digital wallet, users won't have to worry about running out of money since they can connect the cash app to their debit card, credit card, or even savings bank account.
Google Pay is a payment provider that goes above and beyond what is expected of them when it comes to securing transactions. Unlike with other cash applications, the bank account details used in transactions will never be stored on the user's phone or merchant processing system. All details are automatically encrypted to Google's extremely secure server.
Of course, this isn't to say that other cash applications like Google Pay or Apple Pay are not secure. All digital e-wallet applications have their respective methods of securing transactions. It just so happens that among all options on this list, Google Pay has the most extensive security model available.
One reason some merchants tend to shy from NFC processing payment options is they're unfamiliar with how these systems work. They'd rather stick to cash transactions, which are plain and simple. If you're faced with a similar issue, look into opening a PayPal merchant account.
PayPal has some of the strictest security guidelines on the market. This is because all these rules exist to prevent merchants from fraudulent transactions and deals. In fact, customers won't be able to pay or send money to your PayPal-connected bank account if the system has one or two reasons to suspect that the undergoing transaction might not be done in good faith.
PayPal, Apple Pay, Samsung Pay, Android Pay, and Google Pay are all popular and widely used NFC-enabled digital wallets. However, if you're looking for an app that most customers would have access to, opt for Square.
They offer extensive customer accessibility. In fact, they're the only app on this list that allows users to pay money digitally via web, iOS, or Android systems. Other options listed have specific requirements when it comes to the operating system, attached credit/debit card, and linked bank account
Also, merchants would be happy to know that they won't have to pay for transaction fees if they're receiving the money via the Square app itself. Just keep in mind that normal Mastercard, Visa, and American Express fees would apply for card transactions.
What separates Stripe from other applications like Google Pay and Apple Pay, among other top contenders, is its extensive analytics reports. Stripe offers a wide range of developer tools. Your options range from automated financial report generators to streamlined invoice management platforms.
Although, note that most of the tools Stripe offers would only be of use to e-commerce entrepreneurs. One of the few beneficial tools for brick-and-mortar store owners would be Stripe's automated dispute handling system. If you don't have an online store, you might want to consider other options.
First, the user opens the cash app and places their phone two to three inches away from the NFC processor. This is near-field communication or contactless technology at work.
Next, the mobile app/credit card terminal encrypts the details and processes them with the POS system. Although, bear in mind that the information won't be transferred directly.
Once the details are properly encrypted and processed, the app will automatically send money to the merchant's POS and deduct it from the user's mobile wallet balance or add it to their credit card dues. Generally, this entire back and forth of details shouldn't take more than a few seconds.
Many users ask whether it's safe to send money via mobile wallets. The simple answer here is yes. A common misconception about mobile payment applications is that they're riskier than payments via debit and credit cards. This statement couldn't be any further from the truth.
On the contrary, some consider the best payment apps to be more secure than credit/debit card payments. Unlike magnetic secure transmission card options, mobile payments only encrypt credit card information and sensitive details. At no point in the transaction will your phone receive or transfer sensitive card details to/from the payment terminal or card reader.
Contactless payments are slowly becoming a favored medium in the American market. Statistics show that there are more than 69.4 million payment app users—this indicates a 10 million increase from 2018.
Contrary to popular belief, the U.S. isn't the most digitally ready and prepared when it comes to processing contactless payments.
Overall, upgrading one's credit card reader to start processing modern e-wallet systems such as contactless cards and digital purses on mobile phones is a smart move for any business or company.
Of course, cash and credit card transaction options will still remain a staple, don't worry. However, limiting your customers to these types of payments won't yield positive results in the long run. It's only a matter of time until other businesses catch up and start accepting NFC payment and other contactless payment options as well. When that happens, you'll be at risk of losing customers.
Are you looking into expanding the payment systems your business currently accepts? ProcessingCard has multiple resources that business owners can refer to when it comes to processing payment methods and transactions. Visit the ProcessingCard website now!
