Mobile Payment Apps

Mobile Payment Apps and Businesses

mobile payment apps
Imagine the next time you are checking out of the grocery store, you show the clerk a picture, and that picture pays for your items.  Cool? We think so.  Convenient?  Definitely. Futuristic?  You can call it that, but technology is probably already in your area.  This is what happens when somebody uses their cellphone as a mobile wallet.  This is a booming industry, with hundreds of billions of dollars already being transferred through these applications yearly.  For small and medium sized business owners, it is especially important to understand how these mobile payment apps work, and how utilizing them can make your business convenient, and maybe even a little futuristic.

How Do Consumers Use Mobile Payment Apps?

Simply put, mobile payment apps allow the transfer of funds from a consumer to a business by way of an application on a cellphone.  An image on the phone displays a QR-code (bar-code like mosaic pattern) which is then scanned.   The smartphone is linked with a type of payment, such as a credit card, and the funds are transferred without having to possess the actual card itself.  These apps are available for many types of cell phones, on multiple platforms including Apple and Android systems.

Mobile Payment Apps and Safety

Mobile Payment AppsAccepting payment with a mobile payment app has several layers of protection for both the business owner, as well as the user.   Once the source of payment is linked to the app, a secret PIN number is set, which keep the consumers credit card safe in the event their cell phone was stolen.  Once a person is ready to use the app, they enter the PIN to unlock their phone, which essentially unlocks the phone to allow the payment to proceed.

Once the PIN is entered and the mobile payment app is ready to pay for something, a process is started.  The app generates the QR code, the merchant scans the image and when that image is confirmed to match, then the bank authorizes payment.  A confirmation is then sent to the user to make sure the amount charged matches the actual dollar amount of the sale.  While this seems like a complicated process, it all happens in just a few seconds or less.

Apps That Benefit Businesses

There are several benefits for the business owner, as well.  For example, these apps can help advertise your business, as they can help the user find merchants that accept payment from the app.  Planning on a big promo event at the end of the month?  Mobile payment apps can get customers in your doors by informing them of sales or giving them perks such as a free products for continued loyalty.

These apps also help to encourage spending in other ways.  A recent article on examined how mobile payment apps are using features such as a built in tip calculator, which makes it so a tip is automatically calculated and displayed as a button giving options to tip 15%, 20% and so on.  The tip is then added to the payment with a simple press on the screen.  This feature has allowed an increase in the amount tipped, with one coffee shop reporting a 12% increase in tips attributed to this feature.

Mobile Payment App Popularity

mobile payment writer Jeff Green recently wrote on the subject of the plethora of apps that can be found in marketplaces for Android and Apple.  For the term ‘mobile wallet’ over twenty apps could be found.  For business owners, the most significant thing to note are the number of businesses that are starting to take payment from a mobile payment app. Starbucks is already using this technology with major chains like Wendy’s and Burger King slated to roll out similar programs.  Major retail stores such as Duane Reade are also starting to accept payment from apps, with many others joining daily.

Get A Mobile Payment App With Transparent Now

Whether you already own a small business, or are looking to start a new endeavor, mobile payment apps are a great way to accept money in a way that is fast and convenient for your customers.  At Transparent, we work with a variety of business, no matter the size.  We have plans that will allow you to start accepting payment from these apps.  With a quick and easy application and no long-term commitment, we make it easy to see that Transparent is the clear choice.