How to Adapt to the Rise of the Payment Apps

2019/03/18 08:00

mobile payments

In a world where cash is no longer king, should your business be paying more attention to mobile payment apps?

Mobile payment apps are being used by millions of people every day and the industry is growing at a rapid pace.

According to Trend One and Statista, mobile payment volumes are set to grow by over 60% by 2021.

mobile payments

Another report by Merchant Machine shows that 64% of smartphone users are mobile payment app users, with the majority of users being between the ages of 18 and 44 – a market with one of the highest spending potentials.

Businesses are fast realising how beneficial mobile payment apps can be to their bottom line and it might be worth your while to adapt too.

Why Your Business Should Consider Mobile Payment Apps

The reality is that consumers are more tech-savvy than ever and they’re far more likely to do business with brands that give them options – the easier you can make a customer’s life, the happier they will be.

If you’ve only been operating on a cash and card basis up until now, it might be time to consider adding a mobile payment app to the mix if you don’t want to lose out on business.

Businesses tend to have a preference for cash and will often offer cash discounts because it means they can skip the credit card processing fees. However, despite cash being the preferred payment method for businesses, consumers are choosing convenience above all else.

Along with major payment apps such as Google Pay growing in popularity, even brands have started adding mobile payment features to their apps in an effort to attract customers who prefer this payment option. Starbucks is one such brand and to date, they have processed close to 30 million mobile payments.

The reality is that businesses need to innovate and adapt in order to stay competitive and mobile payments apps are one way to do that.

If you happen to be located in an area with high smartphone usage and tons of foot traffic, mobile payments are an obvious choice.

6 Mobile Payment Apps to Consider for Your Business

If you’re not quite ready to add mobile payment functionality to your own app, here are the best payment apps to consider for your business.

  • PayPal

PayPal currently has well over 260 million active accounts and over $578 billion in total payment volume as of the end of 2018. PayPal continues to be a payment giant and has even acquired other mobile payment companies such as Simility and iZettle, which has allowed the brand to offer even more mobile payment options to businesses of every size. PayPal’s fraud detection is one of the reasons why it’s one of the most popular mobile payment apps around today.

  • Apple Pay

As of August 2018, over 253 million people were using the Apple Pay app to make payments with a touch of their phone. Research also shows that between 2015 and 2016, Apple Pay transactions increased by 500%. All that a user needs is their supported debit or credit card, their Apple ID and a compatible device and they’re good to go.

In order to be Apple Pay compatible, you will need a contactless payment-capable point-of-sale terminal so that users can tap their Apple devices against it to pay. While Apple won’t charge you fees for their mobile payment app services, you will need to have a compatible device and the correct software. The only drawback of this particular app is that only Apple users can use it.

  • Samsung Pay

This is another popular mobile payment app that’s specifically designed to work with a particular device – Samsung in this case. As of 2018, Samsung Pay was being used by 34% of all smartphone users; however, Apple Pay was still leading the way.  

Samsung Pay works with NFC and MST technology, which is used to transfer the customer’s data from their Samsung device to the terminal. The good news is that you can use your existing hardware to implement this system. One downside is that Samsung Pay is only compatible with certain types of Samsung devices so you may not be able to assist as many customers as you’re hoping to. With that being said, consumers are upgrading their Samsung devices every year, which more users will have compatible devices in the coming years.

  • Venmo

Venmo might be owned by PayPal but over 2 million retailers are using the app in the U.S.A alone, making this one of the more popular mobile payment apps around today. Venmo currently has over 27 million active users and in Q2 of 2018, the app had a payment volume of $14 billion. Venmo runs on the Mastercard network so it’s accepted anywhere Mastercard is. This is an ideal app to use if you don’t want to have to upgrade your current technology.

  • Google Pay

Google Pay allows customers to pay on mobile apps, websites and in-store terminals using the information that’s already linked to their Google account. Payments can be made from any tablet, smartphone or Android/iOS smartphone or watch that is linked to a Google account, making payment exceptionally easy. Google Pay has well over 25 million active monthly users and is available worldwide, making this one of the more versatile mobile payment apps.

  • Square

Finally, Square is another great option for businesses wanting to join the world of mobile payment apps. Square is a small device that can be plugged into a tablet, smartphone or computer to make payments. Square currently has over 3 million users and payments can be securely processed from anywhere in the world. The device even has an offline mode in the event that Wi-Fi is unavailable. Square is another versatile app that businesses can use in multiple different ways.

If you’re considering adding mobile payment apps to your payment options, you certainly have enough top apps to choose from. To make your decision, you may need to delve into your website stats to determine what types of devices your customers are using.