Today, more companies are accepting mobile payments than ever before. Google, Apple, Samsung and others have made big moves in recent history and are continuing to develop mobile payment technology, making it easier and more secure for consumers and business owners alike. Although more businesses are using this new technology, many are still catching up. As with any new technology, there are a range of pros and cons to consider. Here’s what businesses should know about mobile payments in 2015:
Pro: Mobile Payments Are Safer
Mobile payments work in a way that’s comparable to EMV chips, meaning this form of payment is much safer than traditional credit cards and payment portals. Like the EMV-equipped cards, mobile payments produce a distinctive transaction code during a purchase, instead of sending a consumer’s personal card information. According to Payline, mobile payments are also covered by the same fraud protection that most debit and credit cards offer in the event of a data breach or hack.
Con: Most Consumers Don’t Use Mobile Pay
According to a PYMNTS.com report, 85 percent of iPhone 6 users have yet to use Apple Pay. However, the lag in technology adopted may only be an isolated issue. TechCrunch reports that mobile payments account for the majority of transactions in 89 countries across the globe.
Pro: New Technology Adds Edge to Your Business
The portal updates for EMV-equipped cards, which are effective this month, usher in a new era of payments. These new POS systems are required for all merchants. Most companies are installing new compliant portals, and some are going even further by adding mobile-friendly payment portals, or contactless technology. These new technologies give businesses a competitive edge. After all, this is the future of business.
Con: Technology Will Continue to Evolve
Tech companies are prone to releasing new models frequently. And with these releases comes the need for updates. Once these new devices hit the market, businesses owners may be required to update the company’s portals, costing the business money. Mobile payments are still being tested and consumers are slowly beginning to test out mobile wallets, so it may be best to stick to your compliant POS portals until all of the bugs are worked out and mobile payments are more widely adopted.
Pro: Mobile Payments Offer Consumers Security
Making mobile payments with Apple’s iPhone 6, for example, is easy and secure. Consumers just hold their device over the contactless reader with a finger on Touch ID. Card numbers are never stored on Apple devices and payments are always secure and private — two factors consumers look for when making purchases.
Con: Mobile Payments Are Not Designed for Every Business or Consumer
The Better Business Bureau stresses that mobile payments may not work for every business type; yet, the business experts still urge business owners to keep pace with digital trends. The BBB also points out that not every consumer is willing to use mobile pay. The business experts suggest finding and applying a payment method that is most compatible with your existing accounting system.